New REINZ statistics encourage a 'positive outlook' on the property market
New Zealand has hit a new record median house price of $562,000 – a 5.0% increase from last year, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
Median prices rose by 5.8% annually across all New Zealand regions excluding Auckland. Auckland’s median prices decreased 1.3% from the same time last year, resulting in a median price of $852,000.
Three regions achieved record prices in May – these included Northland, up 6.7% with a median of $475,000; Tasman, up 16.2% to a median of $612,000; and Manawatu/Wanganui, which recorded a record median price of $305,500, equal to its median price in April 2018.
“The record price for New Zealand continues to highlight the buoyancy of the housing market across the country,” says REINZ chief executive Bindi Norwell. “Of the 16 regions in New Zealand, 13 saw an annual price increase – 5 of which were double digit increases, showing that the demand for good property continues unabated. Only three regions say a year-on-year price decrease – Auckland, Gisborne and Southland.”
Norwell says Auckland has now “found a middle ground” around the $850,000 mark, suggesting that the standoff between buyers wanting a bargain and sellers demanding unrealistic prices is coming to an end.
In other figures, the House Price Index (HPI) increased by 3.7% year-on-year, with the HPI excluding Auckland increasing by 6.8% since May 2017. Canterbury was the only region to experience a slight decrease of 0.9%, which REINZ says is “nothing for the region to be concerned about.”
The number of houses sold this month increased by 1.3% across New Zealand, with Auckland alone accounting for a 5.4% year-on-year increase.
“With 2017 seeing only year-on-year volume decreases for New Zealand, it’s positive to see the number of properties sold having increased year-on-year for 4 out of the first 5 months of 2018,” says Norwell. “Further supporting this positive outlook is that across the country, 9 out of 16 regions saw a year-on-year increase in the number of properties sold, with 4 of those regions experiencing double-digit growth.”
