Two regions set record high house prices as median values rise across New Zealand

Median house prices increased by 9.4% across New Zealand year on year in January to $490,000 with two regions recording record high values, the latest index shows.

Two of 12 regions in New Zealand saw record prices with Hawke’s Bay up 16% to $366,000, and Nelson/Marlborough up 25% to $470,000, according to the figures from the Real Estate Institute of New Zealand (REINZ).

However sales have fallen, probably due to the season, down 6% compared to December 2016 but the number of properties for sale jumped in Auckland by 17% year on year after months of record low supply.

However, the rise in supply in Auckland was not seen across the rest of the country with listings outside of the city down 22% year on year, the data also shows.

A breakdown of the figures show that compared to January 2016 the number of new listings fell 9% in Canterbury, 29% in Wellington and 16% in Waikato/Bay of Plenty.

‘Anecdotal evidence from agents around the country suggests that the market has been picking up speed again towards the end of January,’ said REINZ chief executive Bindi Norwell.

‘The number of properties for sale in Auckland is certainly rising, with more than four months of supply now available and a rise of more than a month of supply over the past year. This lead indicator means greater choice for Auckland home buyers, and prompts us to ask whether the Auckland market is showing some early new signs of activity,’ she explained.

‘Market fundamentals remain the same, with a rising population, housing shortage and historically low, although potentially rising, interest rates. We await the March data with interest, as a clearer picture will emerge of where the market is likely to head through 2017,’ she added.

The national median house price rose $42,000 or 9% year on year. Compared to December the national median house price fell $26,000 or 5%.

Nelson/Marlborough recorded the largest percentage increase in median price compared to January 2016, at 25%, followed by Waikato/Bay of Plenty at 22% and Manawatu/Wanganui at 21%.

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