The latest data from analytics company CoreLogic has revealed Featherston had the “lowest 12-month change in median house values” this year, with a drop of 16 per cent.
The data was included in CoreLogic’s annual ‘Best of the Best Report’, which highlights top-performing suburbs in New Zealand.
According to Jen Bhati, Property Brokers’ residential and lifestyle sales consultant for Featherston, the reason for this is that when the housing market really took off and prices skyrocketed, Featherston had a bigger increase than the national average, with the result that the town had “further to come down” from peak prices.
“Analysis of recent transactions and buyer activity in Featherston reveals a diverse range of interested parties,” Bhati said.
“First-time homebuyers, drawn by affordability, families, and professionals seeking a change from city life – primarily Wellington and Hutt Valley – are prevalent.
“A growing number of retirees are exploring Featherston for its downsizing appeal, both among locals and those relocating for a more relaxed lifestyle or intergenerational living due to family or work ties in Wellington. This trend is fuelled by Featherston offering connectivity, better value for money, creating an attractive proposition and fostering a sense of community.”
The “recent hike” in bank interest rates and South Wairarapa District Council rates has prompted some Featherston residents to contemplate relocation, Bhati said.
“The fluctuating average sale prices reflect the market’s size, with occasional high-value transactions skewing the figures. While residential sales have been slow, the market has seen a surge in strategic pricing and increased stock, leading to a notable reduction in days on market from 90–110 days to 40+ days.”
Meanwhile, CoreLogic NZ chief property economist Kelvin Davidson said “the New Year will likely kick off positively in terms of mood, with a new property-friendly government looking to shorten the brightline test back to two years and steadily reinstate full mortgage interest deductibility”.
For more information or to read this year’s Best of the Best Report, visit corelogic.co.nz/news-research.