House price records have been ‘smashed’ across the country as the hot Auckland market pushes more home buyers into the regions.
Recent fears of the super city’s prices cooling appear to be overstated, as median prices across the city have rebounded and broken through $800k for the first time, to a new record high of $820,000, the latest data from the Real Estate Institute of New Zealand show.
Record median house prices have also been seen in Waikato/Bay of Plenty, Wellington, Nelson/Marlborough, Canterbury/Westland and in Central Otago Lakes.
REINZ chief executive Colleen Milne says, “We have talked before about the Halo Effect, which is gaining in strength. Right across the country regional markets have been strong with a large number of record medians and the strongest sales for nine years for most regions, with the strongest March sales for 11 years in Waikato/Bay of Plenty and 14 years in Central Otago Lakes.
“March demonstrates a noticeable surge in sales of higher priced properties, with the number of sales over $1 million increasing by over 90% compared to February.
“This is especially true in Auckland, where one in three properties that sell are valued at more than $1 million - a record 35% of the market.”
Figures show 9,527 dwellings sold in New Zealand in March 2016, a 30.7% jump on February and up 8.2% on March 2015, resulting in the highest number of sales in March since 2007.
Excluding the impact of the Auckland region, the national median price rose $35,000 to $385,000 compared to March 2015.