Confidence remains high in property market

The Real Estate Institute (REINZ) says median house prices have risen across New Zealand by 15.4% to $795,000 in September 2021.

This compared with a median price of $689,000 in September 2020.

Seven out of 16 regions reached new record median prices — the most since April 2021.

The median house price for New Zealand excluding Auckland increased by 23.1% from $585,000 in September 2020 to a new record of $720,000.

This figure marks an increase of 2.9% from August 2021, and REINZ says this indicates that confidence remains high in the property market after the easing of Covid-19 restrictions outside of Auckland.

The median house price in Auckland increased to $1,150,000 from $955,000 in September 2020. However  this figure was down 4.2% from its record $1,200,000 in August 2021.

The median house price in North Shore City was $1,330,000, and Papakura District reached $1,060,000. 

The seven regions that reached record median prices in September were Bay of Plenty, Hawkes Bay, Manawatu, Tasman, Nelson, Canterbury and Southland.

Jen Baird, REINZ chief executive, says confidence in the housing market remains high and buyer demand is still strong, and outside of Auckland, buyers will be pleased to see more property coming to the market.

She adds prices are proving resilient, with some regions noting a decrease in the number of first home buyers, in part due to rising prices.

The REINZ figures follow a similar story revealed on Monday by Quotable Value (QV).

They showed average prices rising 26.3% on an annualised basis. 

REINZ uses median prices, and so tells a slightly different story. 

In terms of volume, the REINZ figures show sales numbers fell across New Zealand by 37.9%, from 8,673 in September 2020 to 5,385 in September 2021.

That was the fewest properties sold in a September month since 2011.

September’s sales are a result of varying lockdown alert levels across the country that have curtailed real estate activity as we all take action to prevent the spread of COVID-19.

In Auckland, the number of properties sold in September decreased by a far greater number, 55.3% year-on-year, from 2,996 to 1,338.

This is blamed on the lockdown.

However the West Coast had the greatest fall in sales numbers, down 56.7%.

The median number of days to sell a property increased by 5 days across New Zealand, from 32 days in September 2020, to 37 in September 2021.

Meanwhile low levels of inventory remain across New Zealand.

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