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Auckland real estate market draws its breath - REINZ

Contributor:
Fuseworks Media
Fuseworks Media

At a time when the Auckland housing market appears to be taking a wet winter breather, the national median price has risen to a new record of $515,000, prices outside Auckland have hit a record median high of $400,000 and six regions of New Zealand have hit new record high median sale prices, according to data released by REINZ for September 2016.

According to the latest figures released today by REINZ, source of the most recent, complete and accurate real estate data in New Zealand, new record median sale prices were seen in Northland ($390,000), Waikato/Bay of Plenty ($458,500), Taranaki ($350,000), Wellington ($480,000), Nelson/Marlborough ($450,000) and Otago ($296,000).

At the same time, Auckland’s median price has risen 7% year-on-year to $825,000, although it dipped 2% on August 2016 on a seasonably adjusted basis. The number of sales nationwide for September 2016 was 7,397, a fall of 2% on August. Sales volumes also fell 10% compared to September 2015, with sales for Auckland falling 23% compared to September last year. On a seasonally adjusted basis, Auckland sales in September fell 3%.

KEY DATA SUMMARY:

- National median house price year-on-year

National / $515,000 - up from $484,650 +6.3% year-on-year

National ex-Auckland / $400,000 - up from $365,000 +9.6% year-on-year

- Auckland median price

Auckland / $825,000 - up from $771,000 +7.0% year-on-year

- Seasonally adjusted median house price

National / Up 3% on August 2016 and up 7% year-on-year

Auckland / Down 2% on August 2016 and up 7% year-on-year

- Month-on-month median house price

National / $515,000 - up 4.7% on August: $492,000

National ex-Auckland / $400,000 - up 3% on July: $387,250

Auckland / $825,000 - down 2% on August: $842,000

- Median days to sell

National / 31 - steady year-on-year

Auckland / 33 - down four days year-on-year

- Other changes of note: inventory

Inventory continues to rapidly fall across the country, with a 20% decline in properties available for sale year-on-year and five regions with less than 12 weeks of supply, representing almost 38% of sales volumes. Wellington has seven weeks of supply available, with Otago under 10 weeks supply, Hawke’s Bay with 10 weeks supply and Waikato/Bay of Plenty and Nelson/Marlborough with 11 weeks supply.

Real Estate Institute of New Zealand (REINZ) spokesperson Bryan Thomson says: "The real estate market in New Zealand appears to be in something of a two-speed mode at present, with Auckland pausing for breath during a wet school holiday period and ahead of likely new Spring growth. We are also seeing anecdotal evidence that first home buyers in Auckland are now favouring new builds as a way of getting finance in the light of the new LVR restrictions and the ‘carve out’ for new home construction. Meanwhile, across the rest of the country prices continue to rise, still demonstrating strong price and volume growth."

Sales volumes declining Across New Zealand the total value of residential sales, including sections, was $4.894 billion in September, compared to $5.182 billion in September 2015 and $4.841 billion in August. For the 12 months ended September 2016 the total value of residential sales was $58.199 billion.

There were 7,397 unconditional residential sales in September, a 10% decrease on September 2015 and a 2% decrease on August. On a seasonally adjusted basis, the number of sales fell 2% from August to September.

Median prices jump, led by the regions The national median house price rose $30,350 (+6%) to $515,000 from September 2015 to September 2016. Compared to August the national median house price rose $23,000 (+4.7%). Central Otago Lakes recorded the largest percentage increase in median price compared to September 2015, at 41%, followed by Nelson/Marlborough at 22% and Waikato/Bay of Plenty at 18%. Auction sales down

There were 1,769 dwellings sold by auction nationally in September, representing 24% of all sales and a decrease of 541 (-23%) on the number of auctions in September 2015.

Auckland auction transactions dropped 13% to 56% of national auction sales, compared to a year ago, reflecting reduced inventory levels. The number of auctions in Wellington increased 235% compared to September 2015, albeit off a small base, and fell by 4% across the rest of New Zealand.

Pressure on stock grows, inventory and days to sell falls The number of properties available for sale across all regions in New Zealand except Auckland has continued to fall between September 2015 and September 2016. Wellington has the fewest properties for sale with seven weeks of supply, closely followed by Otago with under 10 weeks supply, Hawke’s Bay with 10 weeks of supply, and Waikato/Bay of Plenty and Nelson/Marlborough with 11 weeks of supply. Auckland saw an uptick in the level of inventory from 10 to 12.5 weeks of supply.

The number of days to sell has been steady at 31 days compared to September 2015, although the regions have seen some significant improvements with six regions seeing a decrease of 20% or more in the number of days to sell. Auckland and Canterbury/Westland were the only regions to see a lengthening of the number of days to sell over the past 12 months.

Million dollar homes show largest increase in volumes

September 2016 / September 2015

$1 million plus / 1,016 13.7% / 1,042 12.7%

$600,000 to $999,999 / 1,987 26.9% / 1,970 24.1%

$400,000 to $599,999 / 1,822 24.6% / 2,009 24.6%

Under $400,000 / 2,572 34.8% / 3,153 38.6%

All Properties Sold / 7,397 100.0% / 8,174 100.0%

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