REINZ: 2019 year in review for the real estate profession
Median Sale Price
• The
National median sale price increased 5.6%
for the 11 months ending November 2019 ($586,000) when
compared to the 11 months ending November 2018
($555,000)
• The median sale price for New
Zealand excluding Auckland increased 7.7% for the
11 months ending November 2019 ($495,500) when compared to
the 11 months ending November 2018 ($460,000)
• The
Auckland median sale price decreased -0.6%
for the 11 months ending November 2019 ($845,000) when
compared to the 11 months ending November 2018
($850,000)
Sales Count
• The
number of residential properties sold across New
Zealand for the 11 months ending November 2019
totalled 70,882 which is a -2.6% decrease on the same period
last year, when 72,746 properties were sold
• The
number of residential properties sold across New
Zealand excluding Auckland for the 11 months ending
November 2019 totalled 50,219 which is a -2.1% decrease on
the same period last year when 51,271 properties were
sold
• The number of residential properties sold across
Auckland region for the 11 months ending
November 2019 totalled 20,663 which is a -3.8% decrease on
the same period last year when 21,475 properties were
sold.
Days to sell
• The median
number of days to sell a residential property across
New Zealand increased 2 days for the 11
months ending November 2019 compared to the 11 months ending
November 2018 (from 35 to 37 days)
• The median number
of days to sell a residential property across New
Zealand excluding Auckland increased 2 days for the
11 months ending November 2019 compared to the 11 months
ending November 2018 (from 34 to 36 days)
• The median
number of days to sell a residential property across
Auckland region increased 5 days for the 11
months ending November 2019 compared to the 11 months ending
November 2018 (from 36 to 41 days).
Bindi Norwell, Chief
Executive at REINZ says: “The 2019 property market has
been influenced by a number of key themes including:
1. The ongoing effects of the foreign buyer ban which
came into effect in late 2018 and appears to have impacted
sales volumes, but not had the intended flow-on effect for
sales prices
2. the further stabilisation of pricing in
the Auckland market which has hovered around $850,000 for
about three and a half years now – although the last three
months have started to show signs of an uplift
3. The
continued strength of the regions in terms of price growth
with increased demand and a lack of supply of properties,
putting pressure on prices in some areas
4. The record
low OCR and low bank lending rates has meant eased
accessibility for more first time buyers
5. The proposed
Capital Gains Tax which caused many people, particularly
investors, to take a ‘wait and see’ approach.
“2019
has been another interesting year for the real estate
industry – we’ve seen record median prices reached in
many parts of the country, with November itself seeing 10
new regional records and one record equal. The strengthening
prices across the country have potentially had an impact on
the sales volume with numbers down -2.6% across the country.
However, when we look at the total value of property sold in
the 11 months ending November 2019 compared to the same
period in 2018, we see a 0.2% increase, showing that the
overall spend across New Zealand in the property market
throughout the year is remaining rather steady,” continues
Norwell.
“We are expecting 2020 to be another good year
for the industry, with regional growth continuing and
Auckland potentially starting to see some uplift in the year
to come,” concludes Norwell.
New Zealand YTD
November Count Sale Price
(median) Sale Price
(Sum) Days to Sell
(median) 2018 72,746 $555,000 $48.2b 35 2019 70,882 $586,000 $48.3b 37 %
movement -2.6% +5.6% +0.2% +5.7%
New
Zealand excluding Auckland YTD
November Count Sale Price
(median) Sale Price
(Sum) Days to Sell
(median) 2018 51,271 $460,000 $26.5b 34 2019 50,219 $495,500 $27.9b 36 %
movement -2.1% +7.7% +5.1% +5.9%
Auckland
YTD
November Count Sale Price
(median) Sale Price
(Sum) Days to Sell
(median) 2018 21,475 $850,000 $21.7b 36 2019 20,663 $845,000 $20.4b 41 %
movement -3.8% -0.6% -5.7% +13.9%