After 166 enquiries, 122 groups coming through four open homes, and 24 offers, a Havelock North house has sold for $1,050,000. This is more than double its 2019 ratings valuation of $500,000, which initially led many buyers to believe they stood a chance at buying the 1950s weatherboard three-bedroom house.
“Most offers were cash, unconditional” reported Tremains Real Estate agent Bronwyn Grant. The house was sold by an elderly vendor who was downsizing, to a family with children attending school.
Low interest rates have made homes more affordable for people trading up and investors have been active in the market. However, new loan-to-value (LVR) restrictions imposed by the government will limit how much investors can borrow by requiring higher deposits from those .
While some first-home buyers are struggling with high prices, Mortgage adviser Steve Davies says that Hawke’s Bay is “still a great place for first-home buyers”. He pointed out that there is a lot of activity in Central Hawke’s Bay, and that the new LVR restrictions will hopefully open the market for those looking to buy their first home.
