Market Commentary for the Nelson Tasman Real Estate Market July 2017
Nelson residential property values rose 14.4% year on year but quarterly growth slowed to 0.8% over the past three months and values are now 38.8% higher than the previous peak of 2007. The average value in the city is now $531,659. Meanwhile values in the Tasman District have risen 16.7% year on year and 2.3% over the past three months and are 32.9% higher than in the previous peak of 2007. The average value in the district is now $533,816.
The Nelson market remains robust however value growth has plateaued over the past month. Open homes are attracting fewer numbers which are leading to less multiple offers and due diligence clauses are returning to sale and purchase agreements as market demand slows. However, we are still seeing strong interest from out of town buyers, and in particular Auckland buyers who are either cashed up, have good job prospects in the area or can work remotely, and also those people who just see Nelson as a desirable place to live.
Values increased modestly in Nelson from April to June before levelling off in July. This is typical of a winter market and comes after a period of strong value growth. Sales volumes are gradually decreasing partially due to a lack of suitable properties for sale and the incentives to build as opposed to buy existing housing.
Tasman district values have plateaued since May. Sales volumes have decreased slightly over this time. The QV House Price Index is calculated by analysing the average sales price to capital value ratio for sales over the last three months which is applied to the entire stock to generate a current average value.
65 New dwelling building consents issued in June
There were 65 new dwelling building consents issued in June which is down from May in which 101 new homes obtained building consent. 34 of these consents were issued in Tasman with 12 in Nelson and 19 in Marlborough.
The below graph indicates that there has been a gradual increase in new home consents per month with approximately 57 new home consents for the Top of the South in June 2015. There are now approximately 76 new homes consented per month which is a 33% increase on June 2015.
Mean rent $329 in Nelson and $370 in Tasman
Rents have dipped slightly in recent months which can be put down to a winter market. This is noticeable in Nelson which has a high proportion of homes that have poor insulation, heating or are affected by shade. These properties can be hard to rent at this time of year.
Bonds lodged have been decreasing in recent months particularly in Nelson.
Thank you to QV Nelson for producing the Nelson Tasman Real Estate July 2017 Market Report.
About the Author: The above article on Nelson Tasman Real Estate Market Update July 2017 was written and provided by QV Nelson.
Brent Palmer, a local leader in the field of Richmond and Nelson Real Estate sales, marketing, advanced technology for home selling, and social media. You can contact Brent Palmer here, or at 027 544 9921.
He has helped many people buy and sell homes in the Nelson, Stoke and Richmond areas for years, and would love the opportunity to help you as well.
Thinking of selling your home? I have a real passion for helping people sell their homes in our Nelson and Tasman Region, as well as the marketing, social media & advanced technology for home selling that goes along with it. I’d love to have the opportunity to sit down with you discuss how we can work together to get you the best price.
I help people buy and sell real estate in the following Nelson and Tasman towns & neighbourhoods: Wakefield, Brightwater, Hope, Appleby, Redwood Valley, Mapua, Stoke, Tahunanui, Atawhai and of course, Richmond and Nelson City. Connect with Brent on Facebook and pretty much everywhere else.
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