<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=275984476158575&amp;ev=PageView&amp;noscript=1">

Regional Commentary and Market Statistics - August 2018

Market Statistics

Property Brokers 13 Sep 2018

Market_Statistics_Feb_2017.jpg

Volumes are up nationally but there are mixed results around the country. The number of houses sold in New Zealand during August increased by 3.1% or an additional 188 properties when compared to the same time last year according to the latest market statistics from the Real Estate Institute of New Zealand (REINZ).

Median house prices for New Zealand increased 3.6% year-on-year to $549,000. For New Zealand excluding Auckland, the increase was even greater with a 6.2% annual increase from $428,500 to $455,000. Only two regions saw a fall in median price year-on-year – Canterbury with a decrease of -0.5% to $425,000 and Southland with a decrease of -4.0% to $240,000.  August saw 3 regions achieve record median prices (Gisborne, Tasman and Manawatu/Whanganui) and 2 regions (Hawke's Bay and Waikato) equal previous records.

Bindi Norwell, Chief Executive at REINZ says: “Above average temperatures for New Zealand in the final month of winter has had a positive impact on the real estate industry with prices increasing in 14 out of 16 regions across the country. “The middle of the North Island and top of the South Island continue to see strong prices achieved as low listing numbers continue to drive prices upwards in these popular areas,” points out Norwell.

“After six months of flat prices in Auckland it is positive to see an increase as we head towards spring. Breaking the Super City down into its old regional boundaries has shown that areas with solid annual median price increases were Manukau and Waitakere Cities with rises of 10.1% and 5.1% respectively. Whereas, North Shore City saw a fall of -14.6% year-on-year to a median price of $915,000 the lowest median the North Shore has seen since January 2016,” continues Norwell.

 

Regional Analysis - Auckland

“The Auckland median price increased edging over the $850,000 mark for the first time in 5 months. The OIA changes are still causing some confusion in the market but as we move closer to October this will likely be clearer for purchasers. We see that properties under $650,000 are selling quickly and anything priced $800,000 or under is also in strong demand depending on which suburb it is listed in. As always, location is paramount, and most suburbs have price ceilings to match the location, and we see that school zones are still critically important.

Finance is available, but banks are tightening up their lending criteria. Great properties are selling well, and it is the ‘downsizers’ that list most of these houses. Vendors are more pragmatic in negotiations, and if the offer is close, they are more likely to accept the offer, while investors still have higher price expectations. If more properties come to market over the coming months, it should be a good spring.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed increase in median price was a bit larger than expected and the observed increase in sales count was less than expected. The current Days to Sell of 42 days is more than the 10-year average for August which is 34 days. The level of inventory available for sale currently sits at 22 weeks, one week more than in August 2017.

 AKLD_Aug18

 

Regional Analysis - Northland

“The Northland market has seen a steady end to winter, with increases in median prices across all three districts. Listings have slowed in some parts, but interest levels have remained high, resulting in good visitor numbers for newly listed properties. A $900,000 home in Kerikeri recently sold within a week for the full price receiving multiple offers. However, buyers are specific in what they are looking for as similar properties have been listed for weeks with no enquiry. First home buyer interest has cooled.

This is a combined result of the Home Start Grant, which tops at $400,000 and doesn’t see too many properties left in that price range, and it is also because banks are being tough on lending and building reports. Most cash buyers are making an offer only after they have successfully sold their home. Only a small percentage of contracts are subject to the sale of another property. Listing numbers have improved, and we expect with spring, that listings will most likely continue to increase."

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed decrease in median price was greater than expected and the observed decrease in sales count was greater than expected. The current Days to Sell of 48 days is considerably less than the 10-year average for August which is 63 days. The level of inventory available for sale currently sits at 31 weeks, one week more than in August 2017.

 NTHLD_Aug18

 

Regional Analysis - Waikato

“The Waikato market saw strong increases in price and volumes showing the strength of the region. The expected flattening, following the Auckland market, hasn’t materialised and with strong results for August this dampens those negative predictions. There are still multiple offers and prior auction sales with first home buyers in the mix. Banks are being a bit tough on properties with issues such as title and flat plan problems and so are solicitors. Investors are competing with first home buyers, but the investors are more cautious due to banks restrictions.

It is the shortage of rental properties and listings overall that is the driving force at the moment. Auctions continue to sell. Taupo continues to be a popular destination for investors and holidaymakers and there is strong growth there. With a continued good demand and hopefully improving listing numbers it is looking like there will be a positive and active spring market.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed increase in median price was in contrast to the expected small decrease and the observed increase in sales count was greater than expected. The current Days to Sell of 40 days is less than the 10-year average for August which is 48 days. The level of inventory available for sale currently sits at 20 weeks, three weeks more than in August 2017.

 WKTO_Aug18-1

 

Regional Analysis - Bay of Plenty

“The Bay of Plenty market continued to be buoyant throughout August. There is good attendance and bidding at auctions. Fresh to the market stock is seeing a high interest with most properties receiving multi offers and clearance rates are good. The market has a balanced mix of first home buyers, investors and owner occupiers and we see an almost 50/50 split between locals and out of town buyers. Nearly 60% of the sold properties are for permanent homes, while the remaining properties are bought as a rental investment.

Listings remain low, but they started to increase toward the end of the month, which would be in line with the traditional spring lift. Last year, the traditional spring lift didn’t happen due to the election, but the signs are there for it to happen this spring and it will most likely continue to be active up until Christmas.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed decrease in median price was larger than expected and the observed increase in sales count quite a bit less than expected. The current Days to Sell of 43 days is much less than the 10-year average for August which is 52 days. The level of inventory available for sale currently sits at 14 weeks, the same as in August 2017.

 BOP_Aug18

Regional Analysis - Hawke's Bay

“The Hawke’s Bay market has ended winter with a record equal median price of $445,000. The market continues to track in the same manner it has been doing for the last couple of months, with a market that is constrained by undersupply. We see a lower number of cash buyers, compared to the previous month. Hawke’s Bay again has the second lowest inventory level across the country with only 8 weeks’ supply available.”

Our seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed increase in median price was larger than expected and the observed minute decrease in sales count was in contrast to the expected increase. The current Days to Sell of 28 days is considerably less than the 10-year average for August which is 42 days. The level of inventory available for sale currently sits at 8 weeks, two weeks less than in August 2017.

 HB_Aug18

 

Regional Analysis - Taranaki

“The Taranaki market has been relatively positive with both increases in price and volume of properties sold in August. There has been a slight increase in inventory levels which has contributed to the higher sales volume. We have also seen a slight increase in the number of attendees at open homes, investor enquiry and number of listings.

Vendors are asking a bit more compared to a month ago. The main drivers for the region are local people who shift/upgrade their permanent homes. During August, there hasn’t been any significant interest from out of town people. The market looks to be improving for the next coming months.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed decrease in median price was quite a bit larger than expected and the observed large increase in sales count much larger than expected. The current Days to Sell of 35 days is much less than the 10-year average for August which is 47 days. The level of inventory available for sale currently sits at 17 weeks, one week more than in August 2017.

 TAR_Aug18

 

Regional Analysis - Manawatu/Whanganui

“Overall, the Manawatu/Whanganui market has been positive during the last month of winter achieving a record median price of $315,000. First home buyer enquiry is consistently strong and attendance at open homes is also strong with good numbers attending new listings. Investor interest has dropped as there is a worry about the changing tenancy laws and some existing investors are deciding to sell.

Vendors’ expectations are high, mainly due to the listing numbers, which continue to remain low. Many buyers want finance and builders’ clauses in the contracts, and they do take their time to complete their due diligence. The market looks to experience a vibrant spring that will likely continue in this steady course it’s been on during the whole of winter.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed decrease in median price was greater than expected and the observed increase in sales count was fractionally less than expected. The current Days to Sell of 26 days is much less than the 10-year average for August which is 45 days. The level of inventory available for sale currently sits at 9 weeks, three weeks less than in August 2017.

 MAN_Aug18

 

Regional Analysis - Wellington

“Listings continue to be a struggle for the Wellington market in August and new properties that come to the market move quite fast. We see a growing concern among investors due to upcoming rental changes and there are signs that we will see a decrease in investor numbers due to this. However, we see that this gap is filled with a large pool of local first home buyers that want to enter the market.

The first home buyer interest stands for over half of the inquiry in August. We are hoping that the start of spring will see more listings to help ease the demand. Prices across the region continue to hold up strong reflecting the demand for good properties in the region.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed increase in median price was greater than expected and the observed increase in sales count was a little greater than expected. The current Days to Sell of 29 days is less than the 10-year average for August which is 36 days. The level of inventory available for sale currently sits at seven weeks, two weeks less than in August 2017. This is the lowest (in terms of weeks) level of inventory of all the regions.

 WGTN_Aug18

 

Regional Analysis - Nelson/Marlborough

“The confidence that has been present in the Nelson/Marlborough/Tasman market throughout the winter remains, and we are now coming out of a third consecutive winter market with this level of activity. In particular, Tasman saw strong results in August with a record median price of $615,000. The market is driven by demand and the shortage of stock, resulting in multi offers on many of the properties. Investors and first home buyers continue to bid on the same properties, and we now see that this competition also happens on new builds.

The Nelson region has noticed an increase of out of town first home buyers that are interested in relocating. Open homes remain well attended, with a slight lift in August. There are no local sentiments that will impact the market when we enter the spring period unless we see a traditional uplift in listing numbers. Either way, we will most likely continue to see a vibrant market.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed small decrease in median price was in contrast to the expected increase and the observed decrease in sales count was greater than expected. The current Days to Sell of 37 days is less than the 10-year average for August which is 39 days. The level of inventory available for sale currently sits at 13.5 weeks, two weeks more than in August 2017.

 NEL_Aug18

 

Regional Analysis - West Coast

“A typical end of winter market would be a good description for the West Coast region, with sales volumes down but prices are the strongest they have been for 23 months. The main interest remains with the older market who see the affordable house prices as an opportunity to buy. There is a definite increase from out of town investors compared to one year ago, when they were basically absent from the market. Vendors are becoming more optimistic and we see a gradual return of confidence filtering through to the sellers.

Listing numbers are up 13.2% on the same time last year. The spring will likely become more active with a rise in listing numbers and with a pending announcement of a large multi-national projects in the wings, it will be interesting to see how this might influence the market.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed increase in median price was less than expected and the observed increase in sales count was less than expected. The current Days to Sell of 41 days is much less than the 10-year average for August which is 105 days. The level of inventory available for sale currently sits at 51 weeks, 27 weeks less than in August 2017.

 WC_Aug18

 

Regional Analysis - Canterbury

“The Canterbury end of winter market saw strong volumes, but prices continue to remain flat. There are still plenty of buyers around, but they are taking their time in making any decisions. Lenders continue to struggle with bank and insurance criteria, making it a bit more challenging for these buyers. First home buyers with KiwiSaver deposits are having a good look around, and they are willing to commit.

Vendors’ expectations continue to be at the higher end, and some are willing to wait for a buyer that wants to pay the full asking price. The market is showing all the signs of a good spring, with strong interest and listing volumes that have improved, so the market will be active over the coming months.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed small decrease in median price was fractionally greater than expected and the observed increase in sales count was greater than expected. The current Days to Sell of 41 days is higher than the 10-year average for August which is 33 days. The level of inventory available for sale currently sits at 23 weeks, four weeks more than in August 2017.

 CANT_Aug18

 

Regional Analysis - Otago

“Although the Otago market listing numbers remained low, high levels of buyer demand continued to create a competitive environment for those offering on the few properties that came to the market. The end of the month saw a rise of vendor activity with an increase in listing numbers as we move into September."  Dunedin City.

“The Queenstown Lakes market saw a 9.6% increase in median sales price during August. Vendors are continuing to expect price rises on their properties, but the market prices have stabilised. We’re seeing fewer cash buyers as lending has steadily become more challenging in every sector. Spring is on its way, and this time last year the election was looming, and there was uncertainty around this, so hopefully this spring we will go back to a more active spring which is more the norm and what we would expect to happen for this time of year.”  Queenstown.

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed increase in median price contrasted with the expected decrease and the observed large increase in sales count was greater than expected. The current Days to Sell of 28 days is much less than the 10-year average for August which is 40 days. The level of inventory available for sale currently sits at 9 weeks, one and a half weeks less than in August 2017.

 OTGO_Aug18

 

Regional Analysis - Southland

“The Southland market saw prices falling but more sales during August. The property market has been stagnant during previous winters, but this has changed, and we see more people that are interested in relocating here as prices are still seen as affordable. There is also plenty of land here to build upon, which has attracted some outside investors and there has been more interest in signing up for subdivision builds compared to what we have seen in previous years.

Listings continue to remain low, with the increased buyer interest and the end of winter. The spring market will most likely be buoyant, perhaps with an upswing of listings and we will continue to see the increase in interest in the coming months.”

The seasonally adjusted results tell us that, compared to what we expect when moving from July to August, the observed decrease in median price contrasted with the expected small increase and the observed decrease in sales count contrasted with the expected increase. The current Days to Sell of 26 days is much less than the 10-year average for August which is 42 days. The level of inventory available for sale currently sits at 11 weeks, six weeks less than in August 2017.

 STHLD_Aug18