The New Zealand property market proved its strength in August, despite lockdown impacting sales and listing processes nationwide. The national median house price rose 25.5% compared to August 2020, to reach a record $850,000, according to the latest data from the Real Estate Institute of New Zealand, an indication we are still in a strong Seller’s Market due to low stock levels.
Spring is typically a time where the real estate industry picks up after a lull through the winter months, and based on feedback from Professionals offices across New Zealand lockdown has effectively delayed spring for Real Estate, as the numbers show it hasn’t dampened demand or impacted negatively on vendors who are selling. “As most of the country has come out of lockdown our Agents are seeing strong numbers of bidders at auctions, and multi offers on properties being sold via other means,” says Shaun Taylor, Chief Executive of Professionals.
Median prices continue to rise
All 16 regions across New Zealand saw an increase in the median house price compared to August 2020. Four regions hit new record median house prices, with staggering increases compared to August 2020
- Auckland increased by 26.4% to reach $1,200,000
- Waikato increased by 23.8% to hit $780,000
- Manawatu/Wanganui increased by 35.3% to reach $610,000
- Canterbury increased by 24.3% to reach $619,000
“We have seen the property market strengthen as the result of a strong economy and low-interest rates over the last 20 months and there is still unprecedented demand and buyer interest in the market. The year on year growth in average values has dropped back to 25% from 30% earlier in the year, which could be a result of Government policies in certain segments of the market, that being said it is still a great time” says Shaun.
“The latest results show continued record growth in house prices across the country with little signs of this abating in the short term.”
Lockdown impact
There is no denying that the recent lockdown had an impact on the results seen in August. Restrictions under Alert Level 4 mean the real estate industry was essentially unable to operate. This is evidenced in the 26% decrease in the number of properties sold nationally compared to August 2020. However, the number of days to sell still averages at 30 nationwide, another indicator that buyer demand is still present.
“Covid-19’s impact on the property market has been far less significant than the previous one lockdowns. As vendors and buyers adapt in most other areas of their lives they have adapted when buying and selling property. Just as our teams have across the country in terms of providing more digital solutions throughout the process. Covid-19 has been an accelerator of trends across multiple industries and we have certainly seen a rapid adoption of digital tools in our group being used for the benefit of buyers and vendors alike that will continue to be used in the future. ” says Shaun.
Spring surge still expected
The number of listings available has continued to be significantly down compared to the same time last year. August saw 31.9% fewer properties available than August 2020 – the lowest level of available properties since records began.
It is still expected that as we continue into spring and the warmer months we will see an increase in the number of properties listed, with plenty of pre-listing and listing activity able to be carried out in Alert Level 3 and below.
“Spring is a busy time in real estate and based on the increased number of appraisals our Salespeople have been doing, more properties are likely to come onto the market,” says Shaun.
“As confidence in the market continues more people are getting a true value of their home from experienced agents with their finger on the pulse of their local markets. This is a great time to sell so if you are contemplating selling the first step is an e-valuation and then speaking to your local Professionals team about how you can best get your property Market Ready, and its current value.”
A free, no-obligation market appraisal will equip you with the knowledge to make better-informed decisions on when to sell your property and what you can afford to spend on your next one. So, if you’re thinking of selling or are just curious about the value of your property, contact your friendly local Professionals team today.
