Market Update from REINZ's CEO Bindi Norwell
Lack of Properties for sale is putting pressure on house prices and speeding up sales.
As the total pool of properties available for sale in New Zealand falls to record lows, this is continuing to put pressure on house prices, with the country seeing a new record median house price for the fourth month in a row according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand. Median house prices across New Zealand increased by 19.3% from $628,000 in December 2019 to a new record median price of $749,000 in December 2020.
Auckland’s median house price increased by 17.4% from $886,000 at the same time last year to $1,040,000 a new record high – the fifth consecutive month where Auckland has seen a new record median house price. Auckland’s median house price increased by 17.4% from $886,000 at the same time last year to $1,040,000 a new record high – the fifth consecutive month where Auckland has seen a new record median house price.
Regions in addition to Auckland with record median “Currently we have half the inventory levels we had back in December 2018. Therefore, there just isn’t enough choice for people looking to purchase which has meant that there is significant pressure being placed on house prices in most parts of the country.
When you add into the equation the fact that there are record low interest rates, it means that people are more willing to compete to secure the property they want,” continues Norwell. “This lack of choice and high levels of confidence is also causing properties to be sold at the quickest pace we’ve seen in 17 years. The median number of days to sell a house is now just 27 days, showing how people are moving quickly to secure ‘good’ properties,” she points out. “Auckland City remains New Zealand’s most expensive district in the country with December seeing the City reach a new record median house price of $1,280,000 – hovering extremely close to the $1.3 million mark.
Not far behind, was North Shore City on $1,235,000 and Rodney District on $1,005,000 showing how unaffordable the Auckland region is becoming – especially for first home buyers. The only district in Auckland now with a median under the $800,000 mark is Franklin District with a median of $790,000; while it might be the most ‘affordable’ area in Auckland, it does mean a significant commute to the city for those looking to purchase there,” she continues. “Today’s figures further highlight that we urgently need.