As we head into March, we’re feeling comfortably settled into 2019. So, with that in mind, we thought it was an appropriate time to share a Marlborough property market update. Despite consistent growth in the Marlborough market during 2018, there are still plenty of reasons to expect a ‘bullish’ trend upwards as we head further into 2019.
Reasons that the Marlborough Property Market will remain healthy in 2019:
- Buyers who need a mortgage are still enjoying historically low interest rates.
- The national unemployment rate continues to stay low. This increased job security helps to instil mortgage repayment confidence, thereby boosting the property market.
- The beginning of 2019 saw the relaxation of the LVR (Loan to Value Ratio) restrictions after five years. Practically, this means that banks can lend to more people who want to borrow more than 80% of their owner-occupied property’s value. It also means that landlords may be able to borrow up to 70% of the value of an investment property.
- Finally, New Zealand house prices have not been rising as fast as in previous years. This makes the property market more stable, and this brings with it buyer’s confidence.
Marlborough regional property market commentary.
During the last, six to eight weeks activity in the Nelson, Marlborough and Tasman market has come back into full swing after the holiday period.
All three regions have seen annual median house price increases. But Marlborough achieved a new record house price. A 16.3% increase has taken the median price to $477,000. Although we’ve seen a slight 3.2% decrease in new listings, this isn’t always a bad thing, as it has the effect of creating a sense of urgency among buyers. This urgency can be seen translated into the ‘Days to Sell’ figure; this currently sits at 42 days. Less than the 10-year average for January which is 45 days. Overall, the region is still an attractive option for investors, both locally and from outside the region. Our vendors continue to prefer deadline sales as a popular strategy. We’ve also seen an increase in first time home buyers, most likely due to the lifting of LVR restrictions mentioned earlier in this post.
You can view all our current listings by following the links below. Or if you’re thinking of selling, contact us today, for your property appraisal.