Summer heat hits property market around New Zealand

Friday, 13 December 2019

In November the median number of days to sell a property nationally decreased by two days from 35 to 33 when compared to November last year.

New Zealand's median house price rose 8.6 per cent year-on-year to hit a record $630,000 in November, Real Estate Institute statistics show.

Ten regions had their own record house prices and Auckland properties changed hands for a median $885,000 - the highest price in 32 months.

Among the record-setting regions were Waikato, up 11.3 per cent from last year to $590,000, Hawke's Bay, up 14 per cent to $535,800, Wellington, up 12.1 per cent to $695,000 and Nelson, up 16.6 per cent to $610,000.

Only two regions reported an annual decline in median prices - Northland down 1.2 per cent to $499,000 and Tasman down 2.7 per cent to $602,000.

* REINZ wants loan-to-value restrictions lifted for first-home buyers**

'November was a very strong month price wise, with record median prices seen in 10 regions and a record equal in Manawatu/Wanganui. This is the highest number of regional records we've seen in a single month since March 2005. Additionally, the country saw a new national record median price of $630,000 and 24 territorial authorities around the country saw record median prices including Whangarei District, Auckland City, Tauranga City, Napier City, Kapiti Coast District, Lower &and Upper Hutt Cities, Nelson City, Christchurch City, Dunedin City and Invercargill City,' said Real Estate Institute chief executive Bindi Norwell.

'The Auckland market has seen prices increase for three months in a row, suggesting that we're now entering a new normal for the country's biggest real estate market where the increasing levels of confidence in the property market coupled with low interest rates and a lack of choice of new listings means that people are prepared to pay more for properties than they were a few months ago.'

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She said the median price for Auckland was a $22,000 increase from last month. and is the highest price in 32 months.

'However, median prices were mixed across the wider Auckland Region with the likes of Auckland City seeing an 8.4 per cent increase on November 2018 to a record of $.,03 million, Franklin District remaining flat on $702,000 but North Shore City seeing a 6.2 per cent annual decrease to $985,000.'

There were 7405 properties sold across New Zealand in November, a drop of 1.9 per cent from the same time.

In Auckland, the number of properties sold in November increased by 8.7 per cent year-on-year – the highest number of residential properties sold for 18 months and the highest number of properties sold in the month of November since November 2015.

'We're beginning to hear anecdotal evidence from agents around the country that with the ongoing lack of listings which has led to rising median prices, that we're now starting to see the gap widening between vendor expectations and what purchasers are willing to pay for a property in some parts of the country,' Norwell said.

'With more than 9000 fewer listings than 2018 and more than 13,000 fewer listings than in 2017, we can expect to see this pattern of lower sales volumes continue for the immediate future, unless we start to see more properties for sale across most parts of the country.'

In November the median number of days to sell a property nationally decreased by two days from 35 to 33 when compared to November last year. This figure was one day fewer than last month's figure of 34 days.

Auctions were used in 17.1 per cent of sales across the country.

ASB economist Mike Jones said the property market's 'clear return to form' had been driven by Auckland's sharp recovery.

'We've been cautious on Auckland for some time, but with fundamentals remaining strong and investors slowly returning to the market we have upgraded our view. We now expect the housing upturn to last right through 2020.'

WHERE WERE THE RECORDS?

Record median prices were recorded in:

Waikato: $590,000

Bay of Plenty: $636,000

Hawke's Bay: $535,800

Taranaki: $407,000

Wellington: $695,000

Nelson: $610,000

Marlborough: $488,000

Canterbury: $468,000

Otago : $540,000

Southland: $320,000