Market Update: August 2024 – A Dynamic Shift in Kāpiti Coast Real Estate
The real estate landscape on the Kāpiti Coast has experienced some notable changes, as revealed by the latest REINZ stats for July 2024. With 420 listings currently available, it's clear that there's been a significant shift in market dynamics over the past month. Let's delve into these changes and what they mean for buyers and sellers in the region.
Key Market Insights: Interest Rates and Buyer Confidence
One of the most impactful developments in recent weeks has been the reduction of the Official Cash Rate (OCR) to 5.25%. The OCR directly influences the interest rates on deposits and loans offered by registered banks, which, in turn, affects how these banks set their rates for customers. This reduction has injected a new wave of confidence among buyers, leading to increased activity in the market—a trend that is expected to continue as we approach the spring season.
REINZ Stats Overview: A Month of Change
The latest REINZ data shows varied performance across different suburbs within the Kāpiti Coast. In Otaki and Te Horo, July 2024 saw 14 property sales with a median sale price of $545,000, a decrease from the $731,000 median in May and $660,000 in June. Interestingly, properties in this area are selling faster, with the average days to sell dropping to 41 in July from 57 in May.
The Peka Peka and Waikanae suburbs also displayed a similar trend. July recorded 33 sales with a median sale price of $807,000, down from $930,000 in May and $885,000 in June. While the median prices have dropped, the number of sales increased significantly, showing that demand remains robust despite price adjustments. However, the average days to sell increased slightly to 50 in July, suggesting that buyers are becoming more discerning.
In Otaihanga and Paraparaumu, 35 properties were sold in July, with a median sale price of $760,000. This is relatively stable compared to the previous months, with May’s median price at $780,000 and June’s at $789,000. The days to sell dropped to 36 in July, indicating that homes in this area are still in high demand and are moving quickly off the market.
Raumati and Paekakariki experienced a mixed performance. In July, 15 properties were sold at a median price of $800,000. This is an increase from June’s median of $713,000 but slightly lower than May’s $820,000. The average days to sell, however, increased to 49, suggesting a slight cooling in the speed of transactions.
Overall, the Kāpiti Coast saw 99 sales in July with a median price of $772,000. While this is a slight decrease from June’s $789,000, the region remains competitive with properties selling within an average of 46 days.
What Does This Mean for You?
As a local real estate agent in Kāpiti, I’ve observed a tangible increase in buyer activity, which is a positive sign for both sellers and buyers. With spring just around the corner, we can expect this momentum to build, creating opportunities for those looking to buy or sell in the area.
If you’re interested in exploring the market further, or if you have any questions about the current trends, feel free to reach out. I'm here to help you navigate your real estate journey with confidence.
Have you considered buying or selling a property? Or do you know of a family member, friend or colleague who is considering buying or selling a property? Contact Charlie Goodyer to experience next level service.
