Sales activity increased more strongly than usual in New Zealand in November

The number of properties sold in November across New Zealand increased 17.8% from the previous month, the largest rise at this time of year for six years, the latest index shows.

Activity was even stronger outside of Auckland with a rise of 19.4% month on month while in Auckland itself the increase was 13.9%, according to the index from the Real Estate Institute of New Zealand (REINZ).

All regions, except the West Coast, saw sales volume increase in comparison to October and Bindi Norwell, REINZ chief executive, pointed out that while there is usually a significant increase in properties sold in November, the rise this year is stronger than expected.

‘After a difficult winter and a slow start to spring, the real estate industry has experienced a lift in optimism and activity, with increases in the properties sold in 15 out of 16 regions across the country when compared to the previous month,’ she said.

Regions with the biggest month on month increase in sales were Nelson with a rise of 34.7%, Canterbury up33.8%, this is the highest number of properties sold for the month of November for the region in 10 years, Otago up 32.3%, Manawatu/Wanganui up 25.2% and Tasman up 23.1%.

Gisborne and Hawke’s Bay, up 15.1% and 17.8% respectively, also saw the highest number of properties sold for the month of November for 10 years.

The index also shows that property prices up in 15 out of 16 regions year on year with median values up 1.9% overall to $540,000, up from $530,000 in October 2017. Excluding Auckland prices rose 2.3% in November to a record $450,000 while Auckland’s median price increased 3.8% to $880,000.

Auckland’s median price has now increased by $50,000 over the last four months and seven regions saw record prices in November including Bay of Plenty, Hawke’s Bay, Wellington and Marlborough.

The median number of days to sell a property nationally increased by one day from 32 to 33 when compared to November 2016. Regionally, Marlborough saw the biggest increase in the number of days to sell, up 14 days to 37, followed by Southland up five days to 29, Manawatu/Wanganui up four days to 31 and Waikato and Canterbury both up three days to 37 and 33 respectively.