In March it was reported that the NZ housing market was beginning to cool when prices in the Auckland region fell 0.4%. But recent fears (or hopes) of a levelling market were quelled as Auckland housing prices have rebounded, setting a record median high of $820,000 – surpassing the $800,000 mark for the very first time.
Regional areas outside of Auckland are benefiting from buyers looking for more affordable housing or rental property.
As the Auckland market continues to show its strength, we are seeing a “Halo Effect” of rising median housing prices across the entire country.
According to the Real Estate Institute of New Zealand, house hunters who are looking for more affordable housing or rental properties are driving up the property prices in other regions. Their latest data shows record median housing prices have been reached in Waikato/Bay of Plenty, Wellington, Nelson/Marlborough and Canterbury/Westland, as well as extraordinary growth in Central Otago.
A look at the NZ housing market by the numbers.
- National median housing prices is $495,000 – up $20,000 from March 2016 and a 10% increase from February 2016
- 9,527 dwellings sold in NZ in March 2016 – up 30.7% from February 2016 and up 8.2% from March 2015
- 27% increase in sales of dwellings over $1 million between March 2016 (1,301) and March 2015 (1,023)
- 20,180 dwellings sold by auction in the 12 months preceding March 2016. This number represents 22% of all sales and is up 38% from sales in the 12 months preceding March 2015
- $55.207 billion in total value of residential sales for the 12 months preceding March 2016
- $6.187 billion in total value of residential sales (including sections) across NZ in March 2016, compared to $5.381 billion in March 2015
As NZ property demand surges, we see a gap closure in number of days to sell, with March providing the least amount of days to sell for most regions over the past 9-13 years.
Average asking prices reflect vendor confidence, low inventory.
Median asking prices for housing and rental properties indicates strong vendor confidence, but must be considered against a background of relatively low inventory.
Inventory is a measure of the national supply of dwellings for sale, expressed in the number of weeks it would take for all currently listed properties to sell at an average rate should no new properties be listed. At present, the national average of available housing stock sits just above 15 weeks, compared to a long-term national average of 34 weeks.
This new information indicates a robust real estate market across NZ, with Auckland appearing to overcome tax and LVR changes which were introduced towards the end of last year, as well as suggested evidence of rising investor demand in a growing number of regional markets.
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