National median house price passes $500,000

National median house price passes $500,000 for the first time

Five regions also hit new record median highs

New Zealand’s national median house price has reached a new record high, passing the $500,000 mark for the first time to hit $506,000, according to the latest figures released today by REINZ, source of the most recent, complete and accurate real estate data in New Zealand.

Data gathered by REINZ for May 2016 shows that five regions have also hit record high median sale prices, as the Auckland market holds firm. The Waikato/Bay of Plenty region recorded a record median sale price for the fourth consecutive month, hitting $419,000. Record median prices were also reached in Taranaki ($343,250), Wellington ($465,000), Canterbury/Westland ($435,500) and Central Otago Lakes ($707,250).

KEY DATA SUMMARY:

Real Estate Institute of New Zealand (REINZ) spokesperson Bryan Thomson says, “May marked the first time the national house price breached the $500,000 mark. As 2016 progresses we are seeing regional markets such as Waikato/Bay of Plenty, Central Otago Lakes, Northland and Hawke’s Bay strengthening in both prices and sales volume, while the large main centre markets of Auckland and Canterbury are taking a back seat.

“Southland and Manawatu/Wanganui have also seen noticeable increases in the median price, falls in the days to sell, drops in properties available for sale and rising sales volume since the start of 2016. The confidence led by Auckland is helping to drive demand in regional markets with lower interest rates, easier borrowing conditions outside of Auckland and generally good economic conditions are also contributing.

“The growth in activity across the regions is now exceeding the influence of the Auckland market on national statistics. This is shown in the fact that Auckland’s median price is rising slower than the national median price, and Auckland’s share of sales over the past two years has fallen from 40% to 34%. That said, we continue to see strong demand across the Auckland region. The listing situation remains very tight and vendor expectations continue to be optimistic. The supply/demand equation remains well in play for buyers and sellers in the region.

“Of some concern is the dwindling level of properties available for sale and, with winter now upon us, the number of properties coming to market is also going through an expected seasonal decline.”

Sales volumes increase

There were 9,075 unconditional residential sales in May, a 14% increase on May 2015 and a 6% increase on April. On a seasonally adjusted basis, the number of sales fell 5% from April to May.

Median prices jump, led by the regions

The national median house price rose $46,000 (+10%) to $506,000 from May 2015 to May 2016 - a new record high. Compared to April the national median house price increased by $16,000 (+3%). Central Otago Lakes recorded the largest percentage increase in median price compared to May 2015, at 40%, followed by Waikato/Bay of Plenty at 20% and Taranaki at 17%.

Auction sales up, Auckland auctions decline

There were 1,956 dwellings sold by auction nationally in May, representing 22% of all sales and an increase of 201 (+11%) on the number of auctions in May 2015.

Transactions in Auckland represented 65% of national auction sales, a significant drop from the 77% of national auction sales in May 2015. The number of auctions in Waikato/Bay of Plenty has increased by 135% compared to May 2015, while the number of auctions has increased by 66% in Wellington, albeit off a small base, and by 74% across the rest of New Zealand.

Pressure on stock grows, inventory and days to sell falls

The level of properties available for sale across all regions in New Zealand has continued to fall between May 2015 and May 2016. Hawke’s Bay and Wellington have the fewest properties for sale with under eight weeks of supply each, followed by Auckland with 10 weeks of supply and Otago with 11 weeks.

The number of days to sell has only improved by four days (+11%) at the national level, although the regions have seen some significant improvements with six regions seeing a decrease of 25% or more in the number of days to sell. Auckland was the only region to see a lengthening of the number of days to sell over the past 12 months.

Million dollar homes show largest increase in volumes

Between May 2015 and May 2016, there was a 32% increase in the number of $1m + homes sold. The proportion of sales of homes under $599,999 has declined from 65.5% to 60.8% (a drop of 4.7%). The proportion of sales of homes under $400,000 declined by 4.4% year-on-year.

For further data, tables and charts on prices, volumes, inventory, days to sell, auctions – and regional commentary and tables – please see the accompanying report.

http://img.scoop.co.nz/media/pdfs/1606/REINZ_Residential_Regional_Commentary__May_2016.pdf

http://img.scoop.co.nz/media/pdfs/1606/REINZ_Residential_Data_tables__May_2016.pdf

http://img.scoop.co.nz/media/pdfs/1606/Map__May_2016.pdf

ENDS

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