Record high home sales prices for three markets, REINZ reports

April proved to be a stable month for home sales with prices holding up nationally and hitting new record highs in three markets

Record high home sales prices for three markets, REINZ reports
The national median home price gained by more in April than was expected for the time of year with a seasonally-adjusted 1% rise, while the year-on-year gain was 10.4% to reach $540,000. 

Data from REINZ shows that market activity was stable with a 0.4% rise nationally compared to March, driven by a 0.8% rise outside Auckland while that market saw a modest 0.2% gain in activity.

There were new record highs set for median sales prices in Waikato (up 22.3% year-on-year to $489,200), Wellington (up 18.8% to $537,000) and Otago (up 12.7% to $381,000).

Sales volume was pressured by several factors including the wet weather, school holidays, Easter and ANZAC Day. There were 5,845 home sales, down 7% from March and 31% from April 2016.

Nationwide, inventories continued lower in April but Auckland’s supply of available homes increased. Over a 12-month period, inventory dropped almost 17% nationwide, excluding Auckland which saw a 39% rise.

“The Auckland region has seen a continued increase in the level of inventory with almost 2,500 more homes for sale in April compared to 12 months ago and the number of weeks of inventory now the third highest in the country,” CEO Bindi Norwell said.

“Auckland’s median price increased by 3% since April 2016, which suggests that Auckland is further through the property market cycle than the rest of New Zealand, which continues to see strong sales volume and price growth and an accompanying decline in inventory levels,” added Norwell.

For a quick sale, sellers in Otago were in luck with an average 26 days to sell compared to the national average of 34, slightly up from March. Taranaki had the longest average days to sell at 44.