First home buyers still face affordability hurdles, says REINZ
Six regions have achieved record median prices this November with another record price set nationwide, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
The national median house price went up 6.5% from the same time last year, and is currently sitting at $575,000. For New Zealand excluding Auckland the median price is a record $485,000, up 7.8% from November last year.
The number of houses sold also rose by 2.6% year on year nationwide, with the country seeing an annual increase in volumes in 10 out of 16 regions. REINZ chief executive Bindi Norwell says that the statistics will be great news for homeowners looking to sell, though first-home buyers will still have a tough time getting their foot on the ladder.
“For two months in a row now we’ve seen record median prices set for New Zealand driven by extremely strong growth in some of the regions where demand for good properties continues to outstrip supply,” Norwell stated.
“While these record median prices will be a great early Christmas present for vendors selling their homes, they make hard reading for those first time buyers who are desperately saving to get onto the property market. However, with the likes of KiwiBuild and models such as BNZ’s shared-ownership scheme there is some light at the end of the tunnel for those first home buyers feeling locked out of the property market.”
The Auckland market meanwhile saw a mixed picture; Auckland City recorded its highest median price in 17 months, rising to $999,000, and other areas of the city also saw notable increases. However, Rodney District saw a year on year decrease of -11.3%, and Manukau City fell by -2.2%.
The REINZ House Price Index (HPI) increased by 3.5% year on year, reaching a new record high for New Zealand.
