Nationwide residential property values are climbing at their fastest rate since October 2007, increasing 12.6% over the past year, according to the latest monthly QV House Price Index.
Values rose 4.2% over the past three months and are now 30.9% above the previous market peak of late 2007 with the average value nationwide now at $542,277.
The Auckland market has increased 22.6% year on year, 6.7% over the past three months and 64.1% since 2007 which is the fastest annual rate of increase since late 1994.
“Home values in many of the central and upper North Island centres have continued on the upward trend seen over the past few months,” said QV National Spokesperson Andrea Rush.
“This includes Auckland, Tauranga, Hamilton, the Waikato District, Hawkes Bay, Whangarei and the Far North. Values are also rising in Taupo and Rotorua after a long period of being quite flat.”
“Nationwide sales volumes have also been tracking at between 36% and 43% higher over the past three months for the same period last year.”
Rush says based on CoreLogic NZ buyer classification data, higher sales volumes are due to multiple property owners who own under ten properties and are purchasing more properties plus a rise in sales to first home buyers.
“Some of these sales can be attributed to Aucklanders relocating out of the city or investing outside of Auckland and first home buyers taking advantage of changes to the KiwiSaver and record low interest rates.”