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Regional Commentary and Property Market Statistics - August 2020

Market Statistics

Property Brokers 11 Sep 2020

113939839_lThe number of residential properties sold in August across New Zealand increased by 24.8% from the same time last year (from 6,132 to 7,652) – the highest number of properties sold in an August month for 5 years

For New Zealand excluding Auckland, the number of properties sold increased by 16.7% when compared to the same time last year (from 4,320 to 5,040) – the highest for the month of August in 4 years.

Bindi Norwell, Chief Executive at REINZ says:“For many parts of the country, August was an extremely busy month sales volume wise, with the highest number of properties sold for the month of August in five years bolstered by an uplift in sales volumes in Auckland, Nelson, Southland and Hawke’s Bay. Overall, there were 1,520 more residential properties sold this August than last August which equates to an additional 49 properties sold a day which is pretty incredible.”

“The Level 3 ‘lockdown’ imposed on Auckland from 12-30 August had little impact on sales volumes, with last month seeing the highest number of properties sold in an August month for 5 years showing how the adoption of digital tools has been a key factor in keeping the property market moving as we moved back up the Alert Level system,” points out Norwell.

Regions with the largest increase in annual sales volumes during July were:
•Nelson: 40.0% (from 75 to 105 – 30 more houses) – the highest for the month of August in 14 years
• Southland: 38.6% (from 132 to 183 – 51 more houses) 
• Hawke’s Bay: 32.5% (from 191 to 253 – 62 more houses) – the highest for the month of August in 14 years
• Wellington: 31.8% (from 581 to 766 – 185 more houses) – the highest for the month of August in 14 years
• Tasman: 28.8% (from 66 to 85 – 19 more houses) – the highest for the month of August since records began
• Northland: 23.6% (from 178 to 220 – 42 more houses) – the highest sales volume for the region in 10 months

Regional Analysis - Auckland

“Median prices in Auckland reached a new record median price for the region of $950,000. Additionally, Papakura District, Rodney District and Waitakere District achieved record prices of $775,000, $961,000 and $890,000 respectively. The REINZ House Price Index also reached a new high of 3,121, up 10.7% year-on-year. Sales volumes were significantly up on last year (+44.2%), the highest sales count in August since August 2015. Days to sell were also down to 35 days from 44 days in August 2019, the lowest August days to sell since August 2016. New listings were up 20.2% compared to this time last year. Auctions have become more popular with buyers spread across the market and houses in the middle price ranges selling well. In Central Auckland, there has been a lot of competition for apartments from both owner occupiers and investors. Additionally, there has also been an increase in pre-auction offers as buyers look to secure a property ahead of the market. It is likely that the momentum will continue for the remainder of the year and we may even see an increase in new listings as people assess where they are financially.” (REINZ)

The current Days to Sell of 35 days is the same as the 10-year average for August. There were 16 weeks of inventory in August 2020 which is 5 weeks less than the same time last year.

Auckland_August

Regional Analysis - Northland

“In August, the Northland region achieved a new record median price of $590,000. Additionally, Whangarei District also achieved a record price of $610,000. New listings increased 12.9% and sales volumes (220) were up 23.6% year-on-year, the highest sales count for the region since October 2019. On the flipside, the region has the lowest level of total inventory since records began (919 properties). There have been large numbers of people through open homes likely due to the lack of listings on the market. More first home buyers in the market are using KiwiSaver as their deposit and there is increase in investor enquiries, particularly from out of town investors, who have a preference for multi units and flats. There continues to be an active group of buyers who are competing to purchase a property, however, due to the lack of listings on the market, multi offers seem to be the new norm. The shortage of listings may continue into Spring as we head into election time, but demand will stay the same.” (REINZ)

The current Days to Sell of 57 days is less than the 10-year average for August which is 62 days. There were 39 weeks of inventory in August 2020 which is 4 weeks more than the same time last year.

Nothland_August

Regional Analysis - Waikato

“The Waikato region experienced a new record median house price of $628,000, with three districts also achieving new record prices (Matamata-Piako $587,000, Otorohanga $418,500 and Waipa $715,000). The Waikato region has recorded either a new or equal record over the past four months and in nine of the past 12 months, showing the continued growth of the region. New listings increased 21.6% when compared to August 2019. Although new listings increased, sales volumes also increased 16.7% on last year, the highest sales count in August since August 2015. Properties aren’t staying on the market long and demand continues to increase which is likely to be pushing up prices. Buyers are spread across the market with more sales exceeding $1,000,000 compared to a year ago. Property is also selling well in the tourist hot spots such as Taupo and the Coromandel where more out of town purchasers are buying a second property or holiday home. It is unlikely that this momentum will slow down in the next couple of months which will hopefully bring in the usual influx of Spring listings followed by an easing in the early new year.” (REINZ)

The current Days to Sell of 33 days is much less than the 10-year average for August which is 45 days. There were 12 weeks of inventory in August 2020 which is 4 weeks less than the same time last year.

Waikato_August

Regional Analysis - Bay of Plenty

“The Bay of Plenty saw an increase in median prices, up 11% annually, reaching $665,000. Rotorua and Tauranga also achieved new record median house prices of $510,000 and $745,000 respectively. The REINZ House Price Index also reached a new high of 3,051 showing the continued strength in the region. Additionally, the number of sales increased 7.3% to 513, the highest sales count in August since August 2016. Days to sell were also down to 37 days, the lowest August days to sell since August 2016. Bay of Plenty also reached its lowest level of total inventory since records began (1,144). Vendor expectations in terms of price has increased compared to this time last year, likely due to the lack of listings on the market. There are still reports that finance approvals from banks are taking longer than usual as they continue to be cautious with lending. It will be interesting to see how the market continues to perform over the coming months as we head into the election and into the end of the year.” (REINZ)

The current Days to Sell of 37 days is much less than the 10-year average for August which is 47 days. There were 11 weeks of inventory in August 2020 which is 3 weeks less than the same time last year.

BOP_August

 

Regional Analysis - Gisborne

“Gisborne saw a median price increase of 9.5% to $460,000 compared to this time last year. New listings decreased 18.2% and sales also decreased 31.5% year-on-year, making it the lowest August sales count since August 2011. Demand continues to increase, but with the lack of available listings, prices will likely continue to stay the same or increase. The market appears to be strongly in the vendors’ favour with increased price expectations. First home buyers are taking advantage of the low LVRs and help from their parents, but many are still missing out due the high number of buyers in the market. Over the coming months, various indicators show that the market will continue to be strong and buyer demand will remain high.” (REINZ)

The current Days to Sell of 32 days is less than the 10-year average for August which is 39 days. There are 16 weeks of inventory in August 2020 which is 10 weeks more than the same time last year.

Gizzy_August

Regional Analysis - Hawke's Bay

“With a 20.1% annual increase in median house prices, the Hawke’s Bay region achieved a median price of $594,500. The REINZ House Price Index for the Gisborne/Hawke’s Bay region also reached a new high of 3,331. Sales volumes increased 32.5% compared to this time last year, the highest sales count in August since August 2015. There has been a lot of enquiry from out of town buyers, particularly from Auckland buyers and people returning from overseas. There are some large retirement complexes nearing completion which may help with an increase in new listings once people move into the new complexes. Looking forward, the market should remain relatively the same or even tighter over the next few months.” (REINZ)

The current Days to Sell of 30 days is much less than the 10-year average for July which is 41 days. There were 12 weeks of inventory in July 2020 which is four weeks more than the same time last year.

HBay_August

Regional Analysis - Taranaki

“The Taranaki region saw median house prices reach a new record high of $451,000 with the South Taranaki District also achieving a new record median house price of $315,000. Taranaki also had the lowest August days to sell since records began, down 11 days from 35 days in August 2019 to 24 days in August 2020. Inventory levels in the region are also at their lowest since records began, with a total of only 284 properties. There have been a few more listings come onto the market, but they have been selling quickly. First home buyers remain very active, but many are missing out due to multi offers on most properties. Low interest rates are attracting potential investors who are competing with first home buyers. Many potential vendors are renovating their existing homes rather than moving due to the lack of choice or availability on the market. Over the coming months, the market should remain reasonably steady if the post-COVID results are anything to go by.” (REINZ)

The current Days to Sell of 24 days is much less than the 10-year average for August which is 44 days. There were 10 weeks of inventory in August 2020 which is five weeks less than the same time last year.

Taranaki_August

Regional Analysis - Manawatu/Whanganui

“The Manawatu/Wanganui region experienced another record month with median house prices reaching $450,000. Additionally, three districts achieved record median prices – Manawatu District ($535,000), Taranaki District ($320,000) and Whanganui District ($375,000), likely in part due to the uplift in the percentage of properties sold in the $500,000 to $750,000 bracket. New listings also increased 17.4% compared to this time last year. Days to sell (27) were the lowest August days to sell since August 2005 and the second lowest days to sell overall, since records began. The market remains buoyant with more buyers looking to buy than properties available to buy. There are similar number of cash buyers in the market compared to 12 months ago as not many buyers will make cash offers without doing due diligence first. The majority of buyers are locals looking for permanent homes, with about 10% looking for rental investments. It is expected to continue like this for a while yet, with activity picking up over the next few months before it eases over the holiday period.”(REINZ)

The current Days to Sell of 27 days is much less than the 10-year average for August which is 41 days. There were 8 weeks of inventory in August 2020 which is one week less than the same time last year.

Manawatu_August

Regional Analysis - Wellington

“In August, the Wellington region remained active and saw an increase in median prices to $720,000, up 12.8% on last year. The Lower Hutt District and Upper Hutt District also achieved record median prices of $670,000 and $663,200 respectively. The REINZ House Price Index also achieved a new high of 3,065, up 11.6% annually. Wellington had the highest August sales count (766) since August 2006. New listings were up in Wellington by 27% and they also increased significantly by 91.2% in the Wairarapa, compared to the same time last year. The low interest rates, wage subsidies and continued buyer demand is likely to have contributed to the increase in sales and house prices in the region. There is a real mix of first home buyers and investors attending open homes. There has been more demand for apartments in Wellington Central as well as demand for homes in the outer suburbs for people who want to move out of the city after spending lots of time in a small apartment during the lockdown period. With only 6 weeks of total inventory available, hopefully more listings will come onto the market in the next couple of months.” (REINZ)

The current Days to Sell of 29 days is less than the 10-year average for August of 35 days. There were 6 weeks of inventory in August 2020 which is one week less than the same time last year.

 

Wellington_August

Regional Analysis - Nelson/Marlborough

“The Nelson/Marlborough/Tasman region experienced an increase in median prices, with Marlborough reaching just under $500,000 to $492,500. New listings were also up year-on-year, with Nelson and the Bays seeing a 43.7% increase. When compared to prior August results, Tasman had the highest sales count in August (85) since records began and Nelson had the highest sales count in August (105) since August 2015. On the flipside, Marlborough had the lowest August sales count (80) since August 2015. Additionally, Marlborough had their lowest August days to sell (26) since August 2016 and has seen their lowest level of total inventory (162) since records began. The number of properties being sold is exceeding the number of new listings on the market which is likely to be pushing up prices and contributing to the shortage of stock. Most properties have multi offers because of the strong buyer demand and lack of listings. The region is still attracting out of town purchasers who are buying for future planning to move here. The market will continue to be busy with the attractiveness of job and lifestyle options in the area.” (REINZ)

The current Days to Sell of 30 days is less than the 10-year average for August which is 38 days. There were 11.5 weeks of inventory in August 2020 which is 1.5 weeks less than the same time last year.

Nelson_August

Regional Analysis - West Coast

“The West Coast experienced an increase in median prices, up 18.1% to $254,000 compared to this time last year. It was another busy month for the region, but a decrease in new listings (-49.6%) year-on-year likely contributed to a slight decrease in sales (-4.4%) as demand outweighs supply. Additionally, the region recorded its lowest level of inventory since records began (253). There is currently a 3 week wait to book in a residential valuer on the coast which is a good indication of busy activity in the region. Demand is increasing for new builds, but the lack of land development planned for the coming years may leave a further shortage of properties available. As we look to the next couple of months, we would expect the usual Spring uplift, but time will tell.” (REINZ)

The current Days to Sell of 78 days is much lower than the 10-year average for August which is 112 days. There were 34 weeks of inventory in August 2020 which is 2 weeks less than the same time last year.

West Coast_August

Regional Analysis - Canterbury

“Median prices in Canterbury saw a new record of $497,000. Additionally, Ashburton District and Waimakariri District saw record prices of $391,500 and $515,000 respectively. The REINZ House Price Index also saw a new high of 2,666, up 7.8% year-on-year. Sales volumes increased 14.5% compared to this time last year, recording the highest August sales count since August 2006. However, the region saw the lowest level of total inventory (2,427) since records began. First home buyers are very prevalent in the market, however, they are finding finance approval from the banks to be very slow. High levels of enquiry continue across all price brackets, with buyers keen to purchase a home. There are approximately 30% more investors in the market compared to last month who are keen to invest and take advantage of the low interest rates. Over the next few months, there will be many factors that could impact the market, but it is expected to continue as it has been.” (REINZ)

The current Days to Sell of 35 days is more than the 10-year average for August which is 34 days. There were 15 weeks of inventory in August 2020 which is two weeks less than the same time last year.

Canterbury_August

Regional Analysis - Otago

“The Queenstown Lakes District saw a slight 4.1% decrease in the median sale price, but a 22.9% increase in sales volumes when compared to the same time last year. Prices in the Wanaka Ward increased 4.4%, with sales volumes increasing 68.4% year-on-year. There is a considerable amount of enquiry coming from out of the area, particularly from Southland, Dunedin, Christchurch and Auckland. It appears many people are either wanting a second home for holiday use or to live in at a later stage. Buyer inquiry is not showing any signs of slowing down at present.” (REINZ)

“Dunedin City saw median prices increase annually by 11.4% to $519,000. However, sales fell 14.5% year-on-year and days to sell increased by 6 from 21 days in August 2019 to 27 days in August 2020. New listings dropped as we headed into August but there have been similar numbers at open homes which continue to be busy. Looking forward to the next couple of months, the market should remain busy with increased buyer demand. It will be interesting to see how the market performs as we enter the election period.” (REINZ)

The current Days to Sell of 32 days is less than the 10-year average for August which is 37 days. There were 12 weeks of inventory in August 2020 which is two weeks more than the same time last year.

Otago_August

Regional Analysis - Southland

“The Southland market continues its strong growth, achieving a new record median house price of $373,000, likely bolstered by the 15.6 percentage point increase in sales between the $500,000 and $1,000,000 mark when compared to the same time last year. Additionally, sales volumes increased 38.6% on last year and new listings increased 44.5%. The market seems to have picked up again with more first home buyers and investors in the market compared to last month. The low interest rates are attractive to both first home buyers and investors. Open homes have been busier, and enquiries have been steady with buyer interest spread across the market. Over the next few months, we expect the market will continue to improve with the usual slow down as we approach the end of the year.” (REINZ)

The current Days to Sell of 33 days is less than the 10-year average for August which is 40 days. There were 15 weeks of inventory in August 2020 which is five weeks more than the same time last year.

Southland_August