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Rodney North including Kumeu Market Commentary.

Rodney North Median Sales Price graphIn wider Rodney as a whole, the property market was fairly volatile during 2010 with few sales recorded and inferior properties continuing to decline in value. The market appeared to pick up slightly toward the latter end of 2011, followed by some sporadic recovery through early to mid 2012 with activity increasing late 2012. Early 2013 started slowly for this region, however sales gained in momentum from March through to October as buyers looked for cheaper properties in the more distant suburbs away from Auckland central, as well as a return of interest in lifestyle properties. Following the introduction of Loan to Valuation Restrictions (LVR) in late 2013 the market for lower priced properties has been more subdued; this has resulted in a positive shift in the median sales prices that does not truly reflect an increase across all property types.

In November 2014, 74 sales were recorded in the northern Rodney District, up on the previous month's result of 57 sales. It's now taking an average of 38 days to sell, up on last month (32 days) however there is a declining long term trend. Due to the variety of property types in this region, variations in this statistic are not unusual, with average days to sell usually varying between 42 and 93 days since early 2010, with a steady decline trend emerging since early 2012. Recent results below this long term average is indicative of a shortage in the market.

The median house price currently is sitting at $596,500, up 2.0% compared with October ($585,000), and up on the same month last year ($580,000) - the medium house price in Rodney North is subject to great movement due to the relatively low number of sales for the large geographical area and due to the diverse nature of properties in this region; these factors often skew the median result as reported by REINZ. Because of this, it is best to look at longer term trends which are revealing an increasing trend from early 2010 that has accelerated somewhat since late 2013, with this month's result still continuing the current rising trend.

Reports indicate that the LVR is affecting mostly the first home buyer market which tends to be in lower price ranges, and we have seen, generally, falling house sale numbers but continued increases in median house prices as higher value homes continue to sell in the past six months. Across all of Auckland, the main driver continues to be a shortage of housing stock and with increased migration to this region this is likely to continue for some time. Only other economic factors such as rising interest rates, falling employment and slow economic growth will see any reversing trend in median prices emerging in the medium term.

Generally, properties with large blocks of land which are common in Rodney North, are usually the first to fall during a decline and the last to climb during times of rising values, have generally been pushing up median sales values in recent times. Growing interest in new subdivisions in and around Warkworth has resulted in increased activity in this region, with the proposed improvements to State Highway 1 north of Puhoi access to this area will improve, with property values and demand likely to increase in the medium term.

Rental rates vary in the region. Kumeu/Riverhead areas report rentals for a two bedroom house ranging from $350-$420 and a three bedroom house ranging from $450-$600. Rent rates are cheaper further away from Auckland, with rentals for the Wellsford/Warkworth/Helensville region for a two bedroom house ranging from $300-$365 per week and a three bedroom home ranging from $350-$436 per week.

For information about other suburbs covered by Valuation Rodney Ltd, click on the links below:

Rodney North Median Days to Sell graphClick to download full report including recent sales data (PDF Format)

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