National median prices were up 6% in March compared with the previous month and are up $44,000 compared with a year ago.
The REINZ data also shows that Auckland and Canterbury/Westland both recorded new high median prices of $637,000 and $401,000, respectively. Sales were up 19.4% in March compared with February, but are down 10% compared with March 2013.
‘The results for March further define the divide between the drivers of the current residential market, Canterbury and Auckland, and the rest of the country. The low levels of stock held by agents in Canterbury and Auckland further suggests that there are not enough homes available to meet the demand from potential buyers,’ said REINZ chief executive Helen O’Sullivan.
‘There are also clear signs that the national sales volume trend is easing, continuing the trend that began last November. Only two of 12 regions, representing only 3.9% of total sales, showed an increase in sales volumes compared to March 2013,’ she explained.
Despite the easing trend in volumes the median price continues to reach new highs, however, this may be due to the dominance of Auckland and Canterbury in the sales data and a noticeable shift in sales towards high value properties,’ she added.
She also pointed out that there appears to be an increasing divergence between the regions that are seeing growth in their property markets, such as Auckland, Canterbury and Waikato/Bay of Plenty and regions where the property market is far more subdued, such as Wellington, Hawkes Bay, Manawatu/Wanganui and Otago and Southland.
March is typically the busiest month of the year for real estate sales, however, on a seasonally adjusted basis the level of sales was about in line with sales in February, and down 9.5% compared to March 2013.
Only two regions recorded increases in sales volume compared to March with Southland recording the largest increase of 15.5%, followed by Central Otago Lakes with 0.9%. All but two regions recorded an increase in sales volume compared to February, with Auckland recording the largest increase of 41.7%, followed by Otago with an increase of 19.9% and Taranaki with an increase of 13.4%.
While the total number of sales was down 10.0% compared to March 2013, the number of sales below $400,000 fell by 21.9%. This follows a fall in sales below $400,000 of 17.7% between February 2014 and February 2013.
Overall 10 regions recorded an increase in the median price and 75% of the increase in the national median price compared to March last year occurred in Auckland, with Canterbury/Westland contributing 14% of the increase and Waikato/Bay of Plenty contributing 9%.
Together these three regions accounted for 97% of the increase in the median price between March 2013 and March 2014. Compared to March 2013 Auckland recorded the largest increase in median price, up 13.3%, followed by Canterbury/Westland with 11.7% and Waikato/Bay of Plenty with 7.4%.
The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can impact on the median price, is 9.2% higher than March 2013. The Auckland Index has risen 12.1% compared to March 2013, with the Christchurch Index up 10.9% and the Wellington Index up 1.6%.
The data also shows that properties took eight days fewer to sell in March compared to February at 33 days. Compared to March 2013, the median number of days to sell eased by two days.
Five regions saw an improvement in the number of days to sell between March 2013 and March 2014, with Central Otago Lakes recording the largest improvement of 17 days. Auckland saw its number of days to sell ease by two days.
For the month of March, Canterbury/Westland recorded the shortest days to sell at 27 days, followed by Otago at 29 days, Auckland at 31 days, and Wellington at 32 days. Northland recorded the longest number of days to sell at 71 days, followed by Manawatu/Wanganui with 56 days and Central Otago Lakes with 53 days.
Over the past 10 years the median days to sell for the month of March has averaged 35 days across New Zealand.
