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Going up: more record house prices

Press Release – REINZ
The median house price for New Zealand rose 1.8% in March to reach a new record high of $560,000 up from $550,000 in March 2017 according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.

Median prices for New Zealand excluding Auckland increased by 6.2% year-on-year to a record high of $460,000.

Additionally, three regions achieved record prices:

• Gisborne – up 17.9% to $330,000 (up from $280,000)
• Hawke’s Bay – up 11.7% to $445,000 (up from $398,500)
• Wellington – up 10.0% to $583,000 (up from $530,000).

Bindi Norwell, Chief Executive at REINZ says: “As New Zealand’s second largest city, Wellington continues to shine as an attractive place to live with much of the growth being driven by areas outside Wellington’s CBD including South Wairarapa’s Martinborough Ward (+57.4%), Porirua’s Eastern Ward (+48.0%), Carterton District Ward (+27.3%) and Upper Hutt City Ward (+25.6%).”

Volumes down for March

The number of properties sold in March across New Zealand fell by 9.9% when compared to the same time last year with 7,768 properties sold in comparison to 8,622 in March 2017 which saw the highest month for sales volume in 2017.

“Volumes were down across the country 9.9% year-on-year and while at face value this looks like a low number, however, March 2017 was an extremely strong month in terms of the number of properties sold. March 2017 saw the highest number of properties sold of any month in 2017. Whilst the seasonally adjusted figure was also down by 7.8% year-on-year, this is just one month’s worth of data following two solid months of sales, so we’re not overly concerned about this month’s volume,” says Norwell.

“Again, we’ve seen a number of the regions post stronger results than some of the major centres, highlighting the buoyant economies in these areas,” she concludes.

REINZ House Price Index (HPI)

The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 4.2% year-on-year to 2,710 – a new record high. The HPI for New Zealand excluding Auckland increased 7.2% from March 2017 to a new high of 2,546 and Auckland’s HPI increased 1.0% to a new high of 2,909 for the same period.

The REINZ HPI showed that 10 out of 12 regions experienced an increase in their HPI and all of those 10 regions saw a new high in March, highlighting the strength of the property market.

Regions with the highest growth year-on-year were Gisborne/Hawke’s Bay +14.1%, Manawatu/Wanganui and Southland both on +11.4%, and Tasman/Nelson/Marlborough/West Coast up by 10.1%.

Days to sell

The median number of days to sell a property nationally increased by 1 day from 33 days in March 2017 to 34 days in March 2018. This is 10 days fewer to sell a property than it took in February this year.

Auckland saw the median days to sell a property increase by 1 day to 36 (up from 35 in March 2017) but down from 49 days in February 2018.

Regions with the biggest decrease in the median number of days to sell were Southland (-5 days, the lowest number of days to sell in 16 months), Gisborne (-3 days) and Taranaki (-3 days).

Regions with the biggest increase in the median number of days to sell were Otago (+6 days to 30), Nelson (+5 days to 27), Northland (+3 to 42) and Wellington (+3 to 29).

Auctions

Auctions were used in 16% of all sales across the country in March, with 1,225 properties selling under the hammer. This is down slightly from March 2017, when 19% of properties were sold via auction.

Gisborne again saw the highest percentage of auctions across the country with 31% of properties in the region sold under the hammer, followed by Auckland on 29% and the Bay of Plenty on 16%.

Regions with the biggest falls in inventory were:

• Southland – down 15.3%
• West Coast – down 13.4%
• Wellington – down 9.1%
• Taranaki – down 8.7%
• Manawatu/Wanganui – down 7.4%.

Highlighting the lack of inventory across the country, the Wellington region only has 7 weeks’ inventory available to those looking to purchase in the area and the Hawke’s Bay only has 9 weeks’ inventory.

Price Bands

Between March 2017 and March 2018, the number of homes sold for less than $500,000 across New Zealand fell from 44.2% of the market (3,810 properties) to 41.9% of the market (3,255 properties) which is reflected by the overall increasing median price.
Interestingly, the exact same number of properties sold for between $2 million and $2.99 million in March 2018 and March 2017 (158 properties sold in this price bracket), and just one fewer property sold for in excess of $3 million (64 sales) when compared to the same time last year (65 sales).

Content Sourced from scoop.co.nz
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