New Zealand property market showing strong signs

Although the overall length of time that it takes to sell a piece of property in New Zealand has lengthened, the average selling price per home remains high, giving investors some good news.

With property markets around the globe tipping, New Zealand property owners have less fear of their properties not selling for enough. In a study released by the Real Estate Institute of New Zealand shows that the national median sale price for a home was $352,000 (or £134,854) which is higher than previous months.

While prices remained high, the Real Estate Institute says it is taking longer for homes to sell. Currently, the market is at its highest peak in terms of length of time on the market since the property market took off in 2002. The average property takes about 40 days to sell.

Conflicting reports are out there, though. The Quotable Value showed that the average price has actually fallen from October's $406,000 to $393,000 in November. Ultimately, the housing market is flat.

Traditionally, an increase in the length of time that property sits on the market shows a slowing in the property market, or a cooling off in terms of the recent boom here.

Some areas, such as Auckland, still see growth, though. According to Barfoot and Thompson, those selling property in Auckland made significant returns on their investment last year. In some studies, a 12 per cent average gain was seen.

According to Real Estate Institute's numbers for this particular region, there is support to the rise in values. Manukau City saw an 8.5 per cent increase over the year before and North Shore saw the median price move up to 7 per cent. Additionally, Waitakere City saw nearly a 9 per cent increase.