REINZ Monthly Report

Regions on the Rise

Summary
• Waikato / Bay of Plenty and Northland saw an increase in the median price of 3% in July 2015 compared to June
• The Auckland median price has fallen in July 2015 by -2.65% compared to June. The median price in the regions has increased by 3.3% over the same period.
• 8,121 dwellings sold in New Zealand in July 2015, up 37.8% on July 2014 and 9.4% on June
• A national median price of $465,000, up $49,000 (11.8%) on July 2014 and $15,000 (3.3%) on June
• A national median price (excluding Auckland) up $19,950 (6.0%) to $352,000 compared to July 2014 and $12,000 on June
• A rise of 21% in Auckland’s median price from July 2014 to July 2015 – from $610,000 to $735,000 – although a fall of $20,000 compared to June
• The highest level of July sales across New Zealand since 2005, and since 2003 for Northland, Auckland and Waikato/Bay of Plenty
• A 130% rise in the number of sales over $1 million between July 2014 and July 2015 – from 395 to 909

REINZ, the most up to date source of real estate data in New Zealand, announced today that there were 8,121 dwelling sales in July 2015, up 37.8% on July 2014 and 9.4% compared to June 2015.

The national median price was $465,000 for July, an increase of $49,000 or 11.8% on July 2014, and $15,000 or 3.3% from June. Excluding the impact of the Auckland region, the national median price rose $19, 950 compared to July 2014, to $352,000, and $12,000 (3.5%) compared to June.

Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne says, “The volume of sales has been exceptionally strong for the middle of winter right across New Zealand, with very strong year-on-year sales growth in the top half of the North Island and Central Otago Lakes in particular. Backing this is strong anecdotal evidence of Aucklanders buying in these regions as owner occupiers and investment properties. Inventory continues to be a significant problem in Auckland, with less than 10 weeks supply available, and there is an emerging problem of available properties in Northland and Waikato/Bay of Plenty, with a 50% fall in inventory for Northland over the past 12 months and a fall of 60% in Waikato / Bay of Plenty.”

Sales Volumes
There were 8,121 unconditional residential sales in July, a 37.8% increase on July 2014 and an increase of 9.4% from June. On a seasonally adjusted basis, the number of sales rose 6.3% from June to July, indicating July sales were noticeably stronger than what would normally be expected at this time of year.

Sales volumes excluding Auckland were up 7.4% from June and 35.8% on July 2014. On a seasonally adjusted basis, Auckland’s sales volumes were up 11.0% compared to June, indicating that volumes were stronger in Auckland than in the rest of the country.

Nine regions recorded increased sales volumes compared to June, with Hawkes Bay volumes growing 37%, followed by Central Otago Lakes with 33% and Southland with 18%. Compared to July 2014, all regions recorded increases in sales volume, with Waikato / Bay of Plenty recording the largest of 80%, followed by Northland with 71% and Hawkes Bay and Central Otago Lakes with 60% each.

Prices
The national median house price rose $15,000 (3.3%) from June to July, to $465,000. In comparison with July 2014 the national median increased by $49,000 (11.8%), with 11 regions recording increases. Excluding the Auckland region, the national median rose $12,000 (3.3%) compared to June and $19,950 (6.0%) compared to July 2014. On a seasonally adjusted basis, the national median rose 5.5% compared to the actual rise of 3.3% in June, reflecting the fact that prices normally fall in July.

Auckland recorded the largest percentage increase in median price compared to July 2014, at 21%, followed by Northland at 16% and Southland at 15%. Nelson / Marlborough recorded the largest percentage increase in median price compared to June, with 8%, followed by Otago with 7% and Hawkes Bay with 4%.

Auctions
There were 1,895 dwellings sold by auction nationally in July, representing 23.3% of all sales and an increase of 916 (+94%) on the number for July 2014. There were 17,235 sales by auction in the 12 months to July 2015, representing 20.6% of all dwelling sales, compared to 14,831 (19.8% ) for the year ending July 2014.

Transactions in Auckland again dominated the auction market in July, representing 74% of the national total of auction sales. 44% of all dwelling sales in Auckland were by auction, compared to 30% in July 2014. Sales by auction in Waikato / Bay Of Plenty accounted for 13% of the national total, Canterbury/Westland accounted for 8% and all other regions combined accounted for the remaining 5%.

Further Data
Across New Zealand the total value of residential sales, including sections, was $4.852 billion in July, compared to $4.391 billion in June and $3.064 billion in July 2014. For the 12 months ended July 2015 the total value of residential sales was $48.134 billion. The breakdown of the value of properties sold in July 2015 compared to July 2014 is:

ENDS

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