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Going up again: median house price in Wgtn hits record $640,000

Press Release – REINZ
Median house prices across New Zealand increased by 5.7% in February to $560,000, up from $530,000 in February 2018. Median prices for New Zealand excluding Auckland were even stronger increasing to a record $490,000 up 8.9% from $450,000 in February last year. The median house price in Wellington was up 16.2% to a record $640,000 (up from $551,000 at the same time last year).

Median house prices in Auckland returned to the $850,000 mark – down 0.6% on last year’s figure of $855,000, but up 5.6% on January’s median price of $805,000.

Other regions that saw record median prices achieved in February:

• Gisborne: +25.8% to $390,000 (up from $310,000 at the same time last year)
• Manawatu/Wanganui: +23.4 to $352,000 (up from $285,250 at the same time last year)
• Southland: +20.8% to $290,000 (up from $240,000 at the same time last year)
• Hawke’s Bay: +6.4% to $472,500 (up from $444,000 at the same time last year).

February saw 15 out of 16 regions experience an annual increase in the median price, with 5 regions seeing record median house prices highlighting the strength of the housing market around much of the country. With house prices continuing to rise at such a pace, this puts even more of a dampener on any notions of New Zealand following in Australia’s footsteps in the short to medium term. Even Auckland saw an increase from January, showing it has returned to the same, stable or flat market we’ve been seeing since April 2017.

REINZ House Price Index (HPI) increases 3.2% annually

The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.2% year-on-year to a new record high of 2,778.

The HPI for New Zealand excluding Auckland increased 8.1% from February 2018 to a new record high of 2,728. The Auckland HPI decreased -2.0% year-on-year to 2,838.

The REINZ HPI saw 8 out of 12 regions experience a record high level over the past 12 months, highlighting the overall continued strength of the property market. The exceptions were Northland, Auckland, Otago and Southland.

In February the Manawatu/Wanganui region again had the highest annual growth rate, a 19.4% increase to a new record high of 2,984, followed by Gisborne/Hawke’s Bay in second place with an annual growth rate of 13.8% to a new record high of 2,762 and in third place was Southland with a 12.6% annual increase to 2,797 – down -1.8% from its peak in January 2019.

Days to Sell continues to hover close to 50

In February the median number of days to sell a property increased by 3 days from 44 to 47 when compared to February last year. For New Zealand excluding Auckland, the median days to sell increased by 1 day to 43. However, Auckland saw the median number of days to sell a property increase by 8 days from 49 to 57 – the highest number of days to sell since February 2009.

Manawatu/Wanganui had the lowest days to sell of all regions at 30 days, down 10 days from 40 at the same time last year. The West Coast always has the highest days to sell of any region (at 91 days in February 2019), but the median number of days to sell in Northland has reached a high of 61 days – the highest in since August 2015.

Auctions were used in 11.1% of all sales across the country in February, with 663 properties selling under the hammer – this is down slightly from the same time last year, when 11.8% of properties (776) were sold via auction.

The number of properties available for sale nationally decreased by -0.3% from 26,943 to 26,850 – a decrease of 93 properties compared to 12 months ago.

February saw 7 regions with an annual increase in inventory levels. Regions with the largest increases were:

• Taranaki: +8.3% from 641 to 694 – an additional 53 properties
• Auckland: +6.7% from 9,588 to 10,234 – an additional 646 properties
• Hawke’s Bay: +6.7% from 493 to 526 – and additional 33 properties
• Marlborough: +5.7% from 349 to 369 – an additional 20 properties.

Regions with the biggest falls in inventory were:

• Gisborne: -32.2% from 143 to 97 – 46 fewer properties
• West Coast: -26.1% from 595 to 440 – 155 fewer properties
• Manawatu/Wanganui: -21.9% from 1,093 to 854 – 239 fewer properties
• Southland: -20.2% from 623 to 497 – 126 fewer properties
• Otago: -20.0% from 689 to 551 – 138 fewer properties

Wellington again saw the lowest levels of inventory with only 8 weeks of inventory available to prospective purchasers. This was closely followed by Otago and Hawke’s Bay on only 9 weeks’ inventory, followed by Gisborne on 10 weeks’ inventory available.

Content Sourced from scoop.co.nz
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