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Regional Commentary and Property Market Statistics - July 2020

Market Statistics

Property Brokers 17 Aug 2020

113939839_lThe number of residential properties sold in July across New Zealand increased by 24.6% from the same time last year (from 6,303 to 7,854) – the highest number of properties sold in a July month for 5 years

For New Zealand excluding Auckland, the number of properties sold increased by 21.5% when compared to the same time last year (from 4,328 to 5,258) – the highest for the month of July in 15 years.

Bindi Norwell, Chief Executive at REINZ says: “New Zealand’s property market continued to defy expectations in July with sales volumes increasing by 24.6% when compared to the same time last year."

“Focusing on the July results, the only region in the country not to see an uplift in sales volumes was Gisborne, which saw the number of sales fall by 38.9% when compared to the same time last year. With just over 100 new listings coming onto the market over the last three months, and a total inventory of just 7 weeks, it’s not entirely surprising that sales have fallen in the region,” points out Norwell.

Regions with the largest increase in annual sales volumes during July were:
• West Coast: 57.1% (from 35 to 55 – 20 more houses) – the highest for the month of July in 14 years
• Tasman: 55.7% (from 61 to 95 – 34 more houses) – the highest for the month of July in 18 years
• Nelson: 42.4% (from 85 to 121 – 36 more houses) – the highest for the month of July in 27 years
• Waikato: 34.8% (from 635 to 856 – 221 more houses) – the highest for the month of July in 5 years
• Taranaki: 30.8% (from 169 to 221 – 52 more houses) – the highest for the month of July in 17 years.

Regional Analysis - Auckland

“The Auckland region saw a median price of $920,000, up 11.5% year-on-year. A new record price was achieved in Manukau City, reaching $928,000 supported by a big uplift in prices in East Tamaki, Half Moon Bay and Weymouth. Additionally, sales in Auckland recorded the highest July sales count since July 2015 (2,596 properties). First home buyer activity remains strong with many families wanting to purchase while interest rates are low. A similar number of investors are in the market, but many are waiting for later in the year when values could drop as the ‘mortgage holidays’ come to an end. Open homes are very busy for properties across the board with 25-60 groups attending first weekend open homes in some circumstances. Buyers are genuinely looking to purchase or buy a second property while interest rates are low. There has been a strong clearance rate of approximately 80% at auctions. Some offshore owners are looking to sell as they don’t know when they can return to New Zealand. Finance approvals are challenging with several buyers having to wait up to 3 weeks to get an update from their bank. The market should continue to be busy in the lead up to the election.” (REINZ)

The current Days to Sell of 35 days is higher than the 10-year average for July which is 34 days. There were 22 weeks of inventory in July 2020 which is 2 weeks less than the same time last year.

Auckland_July

Regional Analysis - Northland

“In July, the Northland market saw median prices increase 16.8% to $555,000 compared to this time last year. The Kaipara District achieved a new record of $690,000, up from the last record of $640,000, 17 months ago. Additionally, the REINZ House Price Index also reached a new record of 3,090, up 10% on last year. The market is busy with open homes and plenty of enquiry, more than usual at this time of the year. There are a few more investors in the market due to the low interest rates and a couple of people investing in rental properties for retirement. Some buyers are expecting prices to drop but there is yet to be a change in prices or demand. Buyers are not relying on finance terms and are selling their own properties before putting in an offer to buy. Properties in the $1,000,000 plus price bracket have slowed down. Over the next month or so prices should remain fairly constant, but it is anticipated that there may be a shortage of listings going into Spring and the market will be influenced by updates on COVID-19." (REINZ)

The current Days to Sell of 50 days is less than the 10-year average for July which is 58 days. There were 44 weeks of inventory in July 2020 which is 8 weeks more than the same time last year.

Nothland_July

Regional Analysis - Waikato

“In July, the Waikato market achieved another record median price of $615,000. The Waikato has had a record price for the third month in a row and has seen 7 of the last 12 months with record prices, plus an equal record. Additionally, the REINZ House Price Index saw a new high of 3,262, up 11.4% annually which shows the continual growth and strength in the region. There has been a noticeable increase in the number of multi-offers across all price points, particularly with first home buyers. Everything is selling well with buyer competition the new norm, often with 10+ offers. Properties in the $650,000 to $850,000 price bracket are selling quickly. Investors appear active, especially from Auckland, however they are commonly beaten by homeowners who seem willing to pay more to secure the property. Open homes are busy with visitor numbers up and mostly local with some out of town buyers relocating or investing. Enquiry has also increased but has come from further afield. Vendor’s price expectations have increased as they grasp onto the shortage of stock and buyer demand, resulting in interesting sales prices. Looking forward, the market will be influenced by the COVID-19 and an up and coming election. Additionally, the end of mortgage holidays may add much-needed supply to the market.” (REINZ)

The current Days to Sell of 33 days is much less than the 10-year average for July which is 44 days. There were 17 weeks of inventory in July 2020 which is 2 weeks less than the same time last year

 

Waikato_July

Regional Analysis - Bay of Plenty

“Median prices in the Bay of Plenty reached $659,000, up 15.6% compared to the same time last year. Sales also increased 23.7% annually and days to sell dropped 34 days on last month from 74 days in June 2020 to 40 days in July 2020. The market is active with multi offers present on most properties that are new to the market. Some deals have fallen over due to finance approvals as banks have tightened up on lending. The lack of property on the market, buyer demand and returning kiwis are likely contributing to the increase in prices. Looking forward, the market should remain relatively similar but with some change as we approach the end of the wage subsidies in the coming months.” (REINZ)

The current Days to Sell of 40 days is much less than the 10-year average for July which is 50 days. There were 17 weeks of inventory in July 2020 which was 2 weeks more than the same time last year.

BOP_July

 

Regional Analysis - Gisborne

“Gisborne achieved a new record median price of $483,000. However, sales were down significantly, dropping 39% yearon year, the only region to see a drop in sales count. The lack of listings on the market is likely to be pushing up prices. Gisborne was one of only three regions, alongside Wairarapa and Marlborough, to see a drop in new listings year-on-year (-26.5%). Anecdotally, the market in Gisborne is very busy with lots of first home buyers competing to buy their first home to get onto the property market. There are investors out there, but properties are too highly priced for them. At a recent auction there were 9 properties where all but 1 sold under the hammer, however, the remaining property sold quickly after via negotiation. One property valued in the mid $200,000 price bracket went for $100,000 more at auction with over 16 bidders. There is a large company opening in Gisborne who are bringing 40 staff with them, all of which require property but there aren’t enough properties available to meet demand. Over the next couple of months, the market is expected to tighten even more with low stock and increase in demand.” (REINZ)

The current Days to Sell of 37 days is less than the 10-year average for July which is 46 days. There are 7 weeks of inventory in July 2020 which is the same as the same time last year.

Gizzy_July

Regional Analysis - Hawke's Bay

“In July, the Hawke’s Bay saw a median price of $550,000 compared to $468,000 in July 2019. Additionally, the REINZ House Price Index for the Hawke’s Bay/Gisborne region achieved a new record high of 3,231, up 15.6% annually, the largest annual increase across all regions. Hawke’s Bay also had its highest July sales count since July 2005 and its highest sales count overall since May 2019. New listings also increased 31.1% compared to the same time last year and inventory increased 17.6% year-on-year. There are still a number of first home buyers in the region looking to buy, but they are missing out due to the increase in prices and some of them are taking the wait and see approach. Open homes continue to be busy with lots of enquiry coming through. Looking to the next couple of months, it is expected to slow around election time, with more activity later in the year, especially with the increase in supply.” (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_July

Regional Analysis - Taranaki

“The Taranaki region achieved a new record price of $446,000. The REINZ House Price Index in the region also achieved a new record of 3,287. Additionally, Taranaki had its highest July sales count (221 sales) since July 2004 and its highest overall sales count since November 2018. At 25 days, Taranaki recorded the lowest days to sell for July in the region since records began. The Taranaki market remains strong with buyer demand for properties under $700,000 still receiving multi offers. Strong buyer demand is expected to stay as interest rates remain low. There is still a lack of available listings on the market, however new listings increased 12.6% year-on-year. Many vendors are choosing to renovate their existing homes rather than buying, likely due to the lack of available listings on the market.” (REINZ)

The current Days to Sell of 25 days is much less than the 10-year average for July which is 42 days. There were 12 weeks of inventory in July 2020 which was nine weeks less than the same time last year.

Taranaki_July

Regional Analysis - Manawatu/Whanganui

“The Manawatu/Wanganui market achieved a new record median price of $442,500. The Manawatu/Wanganui region has had 8 median price records in the past 12 months showing the continued growth in the region. Additionally, the Horowhenua District, Manawatu District and Whanganui District all achieved new record median prices of $450,000, $525,000 and $365,000 respectively. New listings increased 12.1% and sales volumes also increased 24% compared to the same time last year, the highest July sales count in the region since July 2006. Days to sell in the region recorded the lowest days to sell for July (28) since records began showing that properties are still selling quickly in the region. The market appears to be maintaining momentum and it doesn’t look to be slowing down anytime soon. There are still a strong number of first home buyers active in the local market looking to buy, but the lack of listings continues to cause competition and multi offers. There are some reports that vendors are holding onto their properties rather than selling likely due to the lack of available listings to buy.” (REINZ)

The current Days to Sell of 28 days is much less than the 10-year average for July which is 44 days. There were 10 weeks of inventory in July 2020 which was one week more than the same time last year.

Manawatu_July20

Regional Analysis - Wellington

“Wellington experienced saw a 10.6% increase in median prices to $696,800 compared to the same time last year. Additionally, the Kapiti Coast saw a record high of $695,000, up from its last record in December 2019 when it achieved a median price of $675,000. Wellington also had their highest July sales count (764) since July 2007. Many of the buyers on the market are local buyers looking for a permanent home with approximately 20% looking at rental investments. The desirability of the Wairarapa and the Kapiti Coast has increased in the last couple of months. The increase in interest has likely come after many people are looking to move out of Wellington for the lifestyle, especially after the COVID-19 working-from-home trend. Over the coming months there is likely to be cautious optimism in the market with COVID-19, the election time and the end of the wage subsidy.” (REINZ)

The current Days to Sell of 29 days is less than the 10-year average for July of 38 days. There were 10 weeks of inventory in July 2020 which was one week more than the same time last year.

Wellington_July

Regional Analysis - Nelson/Marlborough

“The Nelson/Marlborough/Tasman region all saw median prices increase year-on-year, with the Tasman region increasing 14.2% to $680,000. Additionally, both Tasman (95) and Nelson (121) had their highest July sales count since July 2003 and July 1993 respectively. There are more first home buyers in the market this month and they appear confident and active. A similar number of investors are still present in the market compared to last month who are looking for rental investments. There is a positive attitude from investors regardless of what the next few months may bring. Vendors remain positive about price expectations as property is moving quickly and the market remains upbeat. Overall, the market is busy driven by buyer demand and attractive interest rates as well as the desire for first homes buyers to either get on the property market or investors to remain in the market. It is expected to be more of the same as we head into Spring.” (REINZ)

The current Days to Sell of 36 days is less than the 10-year average for July which is 37 days. There were 16.5 weeks of inventory in July 2020 which was 2 weeks more than the same time last year.

Nelson_July

Regional Analysis - West Coast

“Median prices in West Coast reached $225,000, up 27.8% compared to the same time last year. The West Coast also had their highest July sales count (55) since July 2007 and their overall highest sales count since May 2018. Additionally, at 56 days, West Coast recorded the lowest days to sell for July for the region since records began. New listings also increased significantly by 81.4%, the largest increase across all regions. The West Coast continued to show no sign of slowing down with a high number of sales in the Buller region. There has been continued interest from early retirees who seem to be the main driver of increased demand in the region, likely due to the affordability of houses in the region. There is investor confidence in the region and some interest from qualifying overseas purchasers. Over the next few months, if there continues to be similar demand it is likely that prices may start to increase and interest in the region may continue for some time yet.” (REINZ)

The current Days to Sell of 56 days is much lower than the 10-year average for July which is 98 days. There were 43 weeks of inventory in July 2020 which was 2 weeks more than the same time last year.

West Coast_July

Regional Analysis - Canterbury

“In Canterbury, the median price increased 6.7% year-onyear to $476,000. The REINZ House Price Index for the region also reached a new high of 2,637, up 7.6% annually. Additionally, Canterbury had their highest July sales count (987) since July 2007. First home buyers are a very strong part of our market with approximately 30% more first home buyers in the market this month compared to this time last year. There are also more investors in the market compared to last year likely due to the removal of the LVRs. Open homes are busier with 40+ people attending in some circumstances. Multi offers are still popular with more than 10 offers on many properties. There are plenty of buyers in the market, but banks are taking longer than usual to approve finance which slows things down for the buyer. New listings are slow to the market with just a slight increase in new listings (+1.9%) compared to this time last year. Looking forward, it is expected more listings will come onto the market as we approach the end of the wage subsidy and mortgage holidays.” (REINZ)

The current Days to Sell of 34 days is less than the 10-year average for July which is 35 days. There were 17 weeks of inventory in July 2020 which was three weeks less than the same time last year.

Canterbury_July

Regional Analysis - Otago

“The Queenstown Lakes District achieved a record median price of $1,100,000. Additionally, sales increased 10.1% when compared to the same time last year. The market is active with more activity and enquiry during the school holidays. Buyers are in the market to purchase homes and holiday homes for future use. It will be interesting to see where the market will go in the next few months with buyers and sellers taking a wait and see approach.” (REINZ)

“Median prices in Dunedin City increased 10.8% to $515,000 year-on-year. Sales were also up 20.6% on last year. First home buyers are very prevalent in the market and feel the urgency to buy something before prices potentially increase further. There are more investors in the market as they see better returns by putting their money into property rather than sitting in the bank or in more volatile investment. Looking ahead, prices are likely to remain high unless listing numbers increase to a point somewhat closer to the level of demand. Demand will also remain high as interest rates stay low.” (REINZ)

The current Days to Sell of 36 days is less than the 10-year average for July which is 40 days. There were 12 weeks of inventory in July 2020 which was five weeks more than the same time last year.

Otago_July

Regional Analysis - Southland

“The Southland region remains buoyant with a median price increase of 20.5% reaching $358,000 annually. The increase in pricing is likely due to the increase in the number of houses sold in the $500,000+ price bracket. Additionally, Invercargill achieved a new record median price of $369,500. The new Invercargill City Centre project is likely to be attracting new interest into the region. There are slightly less first home buyers and investors in the market compared to last month. The closure of the Tiwai Point Aluminium Smelter is likely to be a concern for some investors with over 2,000 plus jobs affected in the region. The absence of international students attending SIT due to COVID-19 restrictions will also likely influence the property market in the coming months. It will be interesting to see how the market will perform for the remainder of 2020.” (REINZ)

The current Days to Sell of 28 days is much less than the 10-year average for July which is 41 days. There were 14 weeks of inventory in July 2020 which was three weeks more than the same time last year.

Southland_July