Average home price in Feilding hits $ 720,000 as Manawatū-Whanganui prices break record after record

Feilding real estate brokers sales manager Simon Manthel said Feilding hit a record average price of $ 720,000, in large part because the strong industry and large developments nearby meant there was an influx. constant number of people entering and leaving the city.

WARWICK SMITH / Stuff

Feilding real estate brokers sales manager Simon Manthel said Feilding hit a record average price of $ 720,000, in large part because the strong industry and large developments nearby meant there was an influx. constant number of people entering and leaving the city.

Feilding home prices are at an all time high as the greater Manawatū-Whanganui region breaks record after record.

The latest figures from the Real Estate Institute of New Zealand show that the average house price in Feilding hit $ 720,000 in September, up 44% from last September – and tying Palmerston North’s record set in August.

Meanwhile, the average house price in Manawatū-Whanganui was at a record high of $ 626,000 after matching or setting new records in 11 of the past 12 months.

Even in Palmerston North, where the average price fell $ 10,000 during that month, home prices were still 23% higher than in September 2020 with five new records set at the same time.

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Feilding real estate brokers sales manager Simon Manthel said Feilding has likely equaled its bigger neighbor’s record now, as there is currently a lot of churn in the market.

“It’s Feilding’s labor market that drives up local prices so much, with a strong industrial zone, all the tractor dealerships and work going on in Ōhakea [Airforce Base].

“So we have a constant flow of people coming in and out of town. “

Manthel said that, like in many markets, the rapid rise in prices has been the most difficult for first-time homebuyers.

“With a bit of luck, [for them] it will slow down at some point … but there is no sign of slowing down yet.

Another factor is that the disruption of international trade by the pandemic has exacerbated already existing difficulties with rising material costs and shortages.

“The cost of building a new house is just awful now,” Manthel said.

Despite the prices of existing homes soaring even faster, this was still a cheaper option than new construction.

This in turn fueled competition for these homes and pushed up prices.

Manthel said one of the most noticeable changes in the market as prices soared was the time it took to settle a sale.

It took between five and ten days to settle the financing when an offer was made on a property, which was much slower than before, he said.

Even relatively recently, it was still quite common to have fully funded offers and pre-approved loans.

“Now everything is more or less conditional… and the banks must take the time to review everything. “

However, while the competition was still fierce, with multiple bids on every property coming to the market, there was not the same sense of urgency among buyers, he said.

Earlier in the cycle, buyers were very focused on getting on the real estate ladder before prices rose much higher.

But now the prices had risen so fast for so long that people had adjusted their expectations.

“Now people say ‘if I don’t get it, I don’t understand’ … so a lot of the hype is gone.”

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About Robert Valdivia

Robert Valdivia

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