The latest data from the Real Estate Institute of New Zealand (REINZ) have shown upward trends across the majority of New Zealand’s property market. The most recent index data shows that both house prices and transaction volumes increased across November.
November saw a total of 7,576 property sales across the whole of New Zealand, which is an increase on the previous month’s figures of 13%. Some of the regions that experienced the most profound levels of growth were Northland with 22%, Hawke’s Bay where transactions were up 24%, and Manawatu/Wanganui with a month-on-month increase of 30%.
November’s sales volumes were, however, down 6% compared to the same month of the 2015. This is down, at least in part, to a decline in the number of properties coming up for sale in New Zealand. November of this year saw a fall of 19% in the number of available properties compared to November 2015. This decline has been softening, however, with this Spring seeing a definite reduction in the rate at which available property numbers are dropping.
Prices were also up in November. On a national level, the median New Zealand house price hit $520,000 – a new record – according to REINZ data. This is an increase of $10,000 on the previous month, representing growth of 2%, and a year-on-year increase of $60,500 or 13%. Price growth was very widespread, with all but two of New Zealand’s regions recording increases in the double digits.
One of the exceptions was Auckland. For this region, October was the month in which prices set their new record, and November was a time in which the value of the average home took a step back from this high point. Local agents are fairly unconcerned by this easing off of prices, however, as the overall trend for Auckland prices remains decidedly one of growth. Indeed, year-on-year the median price of a home in Auckland is still up by $86,944. Since October 2013, the region has been experiencing compound annual growth at a rate of 13.2%.
Canterbury/Westland and Nelson/Marlborough were also notable for growth in both prices and transaction volumes. These regions were notable not so much for the extent of this growth as for the fact that they delivered growth in both of these figures despite the impact of earthquakes on their property investment markets.
As of November, the average time it took a property to sell was 32 days. This is essentially unchanged since November 2015. This is the national average, however, and on a regional level the situation has been less static. Seven regions of New Zealand have seen a fall in the amount of time it takes a property to sell, and five have seen the selling process lengthen for the average home. The fastest-selling properties in November were those located in Otago and Southland, which sold in just 25 days on average. Those in Wellington and Manawatu/Wanganui followed very close behind, with the average sale taking 26 days.