New record median house price for NZ & 6 regions

14th November 2019
For immediate release

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REINZ Oct data: New record median house price for NZ & 6 regions. Highest median price in Auckland in 19 months

Median house prices across New Zealand increased by 8.2% in October to a new record high of $607,500, up from $561,500 in October 2018 – the first time the median house price for the country has crept over the $600,000 mark, 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 house prices for New Zealand excluding Auckland increased by 8.6% to a new record high of $520,000, up from $479,000 in October last year.

Median house prices in Auckland increased by 0.8% to $868,000 – up from $861,000 at the same time last year – the highest price in 19 months.
Record median prices were recorded in:
• Northland with a 9.4% increase to $525,000 up from $480,000 at the same time last year
• Waikato with a 9.6% increase to $570,000 up from $520,000 at the same time last year
• Bay of Plenty with a 7.8% increase to $620,000 up from $575,000 at the same time last year
• Hawke’s Bay with a 16.3% increase to $535,000 up from $460,000 at the same time last year
• Manawatu/Wanganui with a 20.9% increase to $407,500 up from $337,000 at the same time last year
• Otago with a 15.8% increase to $550,000 up from $475,000 at the same time last year.

Additionally, a record equal median high was recorded in Canterbury of $465,000, the same price as in October 2018.

The only region to experience an annual decrease in median price was Taranaki, with a marginal fall of -0.5% from $392,000 in October 2018 to $390,000 in October this year.

Bindi Norwell, Chief Executive at REINZ says: “October was a strong month price wise, with record median prices recorded in six regions and a record equal in Canterbury. Additionally, the country saw a new national record median price of $607,500 – the first time the median house price for New Zealand has exceeded the $600,000 mark. This is the highest number of regional record prices we’ve seen for the country in 23 months.

“The Gisborne region also had a very strong month with a 37.1% increase in median price year-on-year to $425,000 – the strongest price rise across the country,” continues Norwell.

“October saw the Auckland region experience the highest median house price in 19 months at $868,000. This was a 0.8% lift on the median price seen last October and a 2.4% lift on the median price from September this year. Looking across the Auckland region, Auckland City saw the highest median price in 28 months with a 4.6% annual increase to $1,001,000 - in part due to a 43.0% increase in median price in the Waitemata & Gulf area. This increase was the result of a 6.8% increase in the number of $1 million to $1,999,999 properties sold compared to the same time last year.

“Additionally, Franklin District saw median house prices increase 8.8% to $695,000 the highest median price in 4 months,” she continues.

Foreign buyer ban impacts YOY sales volumes

The number of residential properties sold across New Zealand in October decreased by -4.0% from the same time last year to 6,801 (down from 7,083).

For New Zealand excluding Auckland, the number of properties sold decreased by -5.5% when compared to the same time last year (to 4,776 down from 5,055).

In Auckland, the number of properties sold in October decreased by -0.1% year-on-year (to 2,025 down from 2,028) – just 3 fewer properties than at the same time last year.

Regions with the greatest increase in annual sales volumes during October were:

• Bay of Plenty: +20.2% (from 446 to 536 – 90 more houses) – the highest for the month of October in 4 years
• Tasman: +19.4% (from 62 to 74 – 12 more houses) – the highest for the month of October in 3 years
• Nelson: +16.7% (from 84 to 98 – 14 more houses) – the highest for the month of October in 4 years.
Regions with the greatest decrease in annual sales volumes during October were:

• Marlborough: -28.7% (from 115 to 82 – 33 fewer houses)
• Gisborne: -22.8% (from 57 to 44 – 13 fewer houses) - the lowest for the month of October in 5 years
• Taranaki: -22.8% (from 189 to 146 – 43 fewer houses) – the lowest for the month of October in 8 years.
“The number of properties sold across the country fell by -4.0% when compared to the same time last year; but with a number of people aiming to sell their home before the foreign buyer ban came into effect at the end of October 2018, it’s not surprising that the number of properties sold fell when compared to last year. When you add this to the fact that there are around 7,800 fewer listings for the first 10 months of 2019 when compared to the same time last year, it’s no wonder sales volumes are down,” says Norwell.

“Importantly though, what we did see was the lift in the number of properties sold when compared to September. Sales volumes were up 12.1% across the country month-on-month, a pattern we expect to see at this time of the year,” continues Norwell.

“Looking around the country, the Bay of Plenty saw the highest sales volumes in the month of October for four years with a big uplift in sales in Kawerau, Opotiki and Western Bay of Plenty Districts and in Tauranga City. Similarly, at the top of the South Island, Tasman and Nelson saw strong annual uplifts in sales volumes.

“In Auckland, areas that are more affordable saw big increases in the number of properties sold, with Papakura District seeing a 41.9% increase annually and Franklin and Rodney Districts seeing increases of 25.6% and 13.8% respectively. Whereas more expensive areas such as Auckland City and North Shore City saw falls of -9.2% and -3.0% respectively,” continues Norwell.

“As confidence continues to creep through, it’s likely we’ll see an uplift again in November, before things quieten down over Christmas and then pick up at the end of January again,” concludes Norwell.

REINZ House Price Index (HPI) reaches new record high

The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.9% year-on-year to 2,863 – a new record high.

The HPI for New Zealand excluding Auckland increased 8.2% from October 2018 to 2,864, another new record high. The Auckland HPI decreased -0.7% year-on-year to 2,863 continuing the improvement seen over the past few months.

In October, Southland had the highest annual growth rate with a 20.9% increase to 3,267, a new record high. In second place was Manawatu/Wanganui with an annual growth of 18.7% to a new record high of 3,330 and in third place was Gisborne/Hawke’s Bay with a 13.9% annual increase to a new record high of 2,969.

In October, 11 out of 12 regions reached record high HPI levels; the only exception was Auckland, showing the strength of the property market.

Days to Sell falls both YOY and MOM

In October the median number of days to sell a property nationally decreased by 1 day from 35 to 34 when compared to October last year. This figure was down 2 days on last month’s figure of 36 days.

For New Zealand excluding Auckland, the median days to sell decreased by 2 days from 34 to 32. Auckland saw the median number of days to sell a property fall from 37 to 36 annually.

Southland had the lowest days to sell of all the regions at 20 days, down 5 days from the same time last year, and 7 days below last month’s figure and is the lowest median days to sell for 12 years (since August 2007). October saw 6 regions with the median number of days to sell below the 30 mark.

Northland had the highest days to sell at 62 days, up 17 days on October last year, but down 5 days on last months’ figure of 67. The West Coast had the second highest median days to sell across the country at 42 days – down 31 days on the same time last year, but down 73 days on last month’s figure of 115.
Auctions

Auctions were used in 15.5% of all sales across the country in October, with 1,052 properties selling under the hammer – this is in line with the same time last year, when 15.6% of properties (1,104) were sold via auction, but up on September 2019 when 13.2% (803) of all sales were via auction. This is the highest percentage of auctions in 11 months.

Gisborne again had the highest percentage of sales by auction across the country with 40.9% (or 18 properties) in the region sold under the hammer – up from 40.4% (23 properties) in October 2018.

Auckland saw the second largest percentage of sales by auction on 27.1% (548 properties) down from 28.1% in October 2018 (570 properties) and the highest percentage of auctions in 12 months. The Bay of Plenty returned to its usual position of third highest percentage of auctions in the country with 18.5% (99 properties) sold under the hammer, down from 19.3% (86 properties) in October 2018.

Inventory

The total number of properties available for sale nationally decreased by -13.1% in October 2019 to 22,313 down from 25,673 to – a decrease of 3,360 properties compared to 12 months ago.

All 15 regions saw an annual decrease in total inventory levels, with the largest percentage decreases in:

• Gisborne: -34.8% from 141 to 92 – 49 fewer properties
• West Coast: -30.3% from 466 to 325 – 141 fewer properties
• Southland: -28.8% from 459 to 327 – 132 fewer properties.
Wellington has the lowest number of weeks’ inventory with 6 weeks. This was followed closely by Gisborne, Hawke’s Bay and Otago all with 7 weeks’ inventory available to prospective purchasers.
The West Coast had the highest number of week’s inventory with 40 weeks’ inventory available to prospective purchasers – the highest in 3 months.

Price Bands

The number of homes sold for less than $500,000 across New Zealand fell from 41.0% of the market (2,904 properties) in October 2018 to 33.9% of the market (2,303 properties) in October 2019.
The number of properties sold in the $500,000 to $750,000 bracket increased from 29.6% in October 2018 (2,094 properties) to 33.4% in October 2019 (2,271 properties).

At the top end of the market, the percentage of properties sold for $1 million or more increased from 14.1% with 998 houses sold for $1 million or more in October 2018 compared to 15.6% with 1,060 houses in October 2019.

ENDS

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