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Regional Commentary and Property Market Statistics - June 2020

Market Statistics

Property Brokers 16 Jul 2020

113939839_lThe number of properties sold in June across New Zealand increased by 7.1% from the same time last year (from 6,184 to 6,625) - the highest number of properties sold in a June month for 4 years.

For New Zealand excluding Auckland, the number of properties sold increased by 6.2% when compared to the same time last year (from 4,306 to 4,571) – the highest for the month of June in 4 years

Bindi Norwell, Chief Executive at REINZ says: “Not only did sales volumes return to ‘normal’ in June, they were the highest for a June month in four years suggesting that the impact of lockdown is now well and truly behind the country, and that people have been able to get on with their sales and purchasing decisions as per usual."

In Auckland, the number of properties sold in June increased by 9.4% year-on-year (from 1,878 to 2,054) – the highest for the month of June in 4 years.

Shaking off the COVID-19 impact, June was the first time in three months where regions have started to see increases in annual sales volumes, with 10 out of 16 regions seeing annual increases.

Regions with the largest increase in annual sales volumes during June were:
• West Coast: 43.2% (from 37 to 53 – 16 more houses) - the highest for the month of June in 14 years
• Southland: 27.7% (from 155 to 198 – 43 more houses) – the highest for the month of June in 13 years
• Taranaki: 19.7% (from 147 to 176 – 29 more houses)
• Waikato: 14.0% (from 607 to 692 – 85 more houses) – the highest for the month of June in 4 years.

Regional Analysis - Auckland

“Median prices in Auckland increased 9.2% from $850,000 in June 2019 to $928,000 in June 2020. Franklin District also recorded an equal record of $745,000, the same as in October 2017. Auckland City had the highest annual increase across the region, up 17.1%. There has been more activity in Auckland City in the $2,000,000+ price bracket, with multiple sales over $4,000,000 which has likely to contributed to the increase in median prices. New listings also increased 38.9% year-on-year, the second largest percentage increase in new listings behind Southland (59.0%). More listings have come onto the market post-lockdown. The market is very active with lots of interest, especially in the Franklin region where many agencies have reported better results over the last four months compared to the same period last year. There is an increase in first home buyers in South Auckland with the take up of new builds and section sales, particularly in the new subdivisions in Takanini, Tuakau, Pukekohe and Drury areas, which is likely driving the increase. Over the next few months, it is expected to remain steady but it may level out towards the election in September.” (REINZ)

The current Days to Sell of 55 days is much higher than the 10-year average for June which is 37 days. There were 37 weeks of inventory in June 2020 which is 10 weeks more than the same time last year.

Auckland REINZ

Regional Analysis - Northland

“In June, the Northland market saw a 10.5% increase in median prices, reaching $525,000 compared to the same time last year. Sales decreased annually by 13.8%, however they have bounced back from last month, increasing by 44.4%. There has been a noticeable increase in the number of first home buyers in the market compared to the pre-lockdown period. Additionally, there are more investors in the market which is likely to be resulting in multi offers for listings across the board. The number of attendees at open homes has increased over the month, with most properties having good numbers at open homes. Price expectations from vendors have remained relatively the same compared to the pre-lockdown period. Looking forward to the next few months, there is cautious optimism as we may see an impact on prices from unemployment or job security as well as when the mortgage holiday period comes to an end.” (REINZ)

The current Days to Sell of 73 days is much higher than the 10-year average for June which is 63 days. There were 51 weeks of inventory in June 2020 which is 18 weeks more than the same time last year.

Northland REINZ

Regional Analysis - Waikato

“The Waikato market was the only region in June that saw a new record median price ($615,000). Hamilton City and Hauraki District also saw new record prices of $660,000 and $542,500 respectively. However, the strongest annual growth came from Waitomo District which saw a 47.7% increase in median prices compared to last year. There has been more enquiry from first home buyers, however a lack of available stock is likely to be impacting sales. There has also been increased enquiry from investors but they appear less urgent than first home buyers and are waiting to see if they will have better buying opportunities down the track. It is now the expectation that the majority of new listings will attract multi offers due to demand being much higher than supply. Sales in Taupo appear slower than usual, with more activity in Turangi and Taumaranui where properties are priced in the lower price brackets. Market activity is expected to continue but it will be interesting to see how the end of wage subsidies, mortgage holidays and the election will impact buyer confidence.” (REINZ)

The current Days to Sell of 58 days is higher than the 10-year average for June which is 49 days. There were 30 weeks of inventory in June 2020 which is 12 weeks more than the same time last year.

 

Waikato REINZ

Regional Analysis - Bay of Plenty

“The Bay of Plenty market recorded a median price increase of 8.7% to $648,000 when compared to the same time last year. New listings increased annually by 5.7%, however days to sell increased 29 days from 45 days in June 2019 to 74 days in June 2020, the second highest days to sell across all regions. Investors are very active in Rotorua, with some out of town investors putting in offers without viewing the property. Most properties are receiving multi offers with back up agreements in place. Overall, the region has seen more attendees at open homes, and vendors’ price expectations have remained similar to pre-lockdown. Over the coming months, the market should level out, but enquiry is expected to remain at similar levels.” (REINZ)

The current Days to Sell of 74 days is much higher than the 10-year average for June which is 54 days. There were 30 weeks of inventory in June 2020 which was 15 weeks more than the same time last year

BOP REINZ

 

Regional Analysis - Gisborne

“In June, Gisborne saw median prices increase 29.4% to $440,000 from $340,000 in June 2019. Additionally, the REINZ House Price Index for Gisborne/Hawke’s Bay reached a new high of 3,226 representing the continued strength of the region. The market is very busy with plenty of enquiry, however, new listings decreased 5.1% from the same time last year, which continues to put pressure on buyer demand. Auctions continue to be popular in the region with many properties selling under the hammer or selling just after auction. There are more first home buyers in the market, but many are missing out to investors at auctions. In a recent auction where 10 properties went under the hammer, 3 were sold as rentals. Over the next few months, access to finance is likely to improve as banks are starting to work more collaboratively with agents to assist purchasers.” (REINZ)

The current Days to Sell of 39 days is less than the 10-year average for June which is 44 days. There are 12 weeks of inventory in June 2020 which is six weeks more than the same time last year

Gisborne REINZ

Regional Analysis - Hawke's Bay

“The Hawke’s Bay saw price increases in all areas across the region showing strength in the market. The median price rose annually by 18.8% reaching $565,000 with Wairoa District reaching a record median price of $304,000 (up 176.4% yearon-year), 28 months since the prior record in February 2018. It’s worth bearing in mind that with low sales volumes, median prices in Wairoa are subject to volatility. There has been an increase in the number of investors in the market compared to last month. Open homes have been busy over the last four weeks with new listings increasing 19.4% compared to this time last year. The market is now performing similarly to pre-lockdown with strong buyer demand especially in the first home buyer category. How the market performs in the coming months will depend on the uncertainty surrounding COVID-19 and the upcoming election.” (REINZ)

The current Days to Sell of 33 days is less than the 10-year average for June which is 40 days. There were 17 weeks of inventory in June 2020 which is nine weeks more than the same time last year

HBay REINZ

Regional Analysis - Taranaki

“The Taranaki market continues to be buoyant with a 12% increase in median prices reaching $420,000 year-on-year. Additionally, sales increased 19.7% compared to the same time last year and the largest sales increase across all regions in the North Island. New listings increased 29.7% compared to this time last year, however, there is still a shortage of listings. We are seeing strong demand from first home buyers and increased investor interest in the market. Low interest rates are likely to be driving strong buyer demand, although banks are assessing house buyers with more diligence than previously. New properties on the market are selling quickly which is expected to continue for the next few months.”(REINZ)

The current Days to Sell of 38 days is much less than the 10-year average for June which is 50 days. There were 16 weeks of inventory in June 2020 which was one week more than the same time last year.

Taranaki REINZ

Regional Analysis - Manawatu/Whanganui

“In June, the Manawatu-Wanganui market saw median prices increase 15.6% to $427,600 compared to the same time last year. Three Districts also saw record median prices – Ruapehu District ($319,000), Tararua District ($310,000) and Whanganui District ($362,550), Additionally, the REINZ House Price Index reached a new high of 3,683, up 19.4% on last year, showing the continued strength in the region. The market has been busy with plenty of enquiry, strong demand from first home buyers and some interest from investors. Attendance at open homes has been above expectations with strong numbers between 10 to 20 groups at new listings. New listings have increased 13.5% with sales volumes returning to pre-COVID-19 numbers (+4.2% year-on-year). Since the removal of the LVR’s, many banks have imposed their own minimum requirements and can take up to 10-15 days to approve finance, with emphasis on job security and employment evidence. Employment in the region is relatively secure and not dependent on tourism. The market should continue to perform much the same for the foreseeable future with strong buyer enquiry.” (REINZ)

The current Days to Sell of 31 days is much less than the 10-year average for June which is 46 days. There were 17 weeks of inventory in June 2020 which was seven weeks more than the same time last year.

Manawatu REINZ

Regional Analysis - Wellington

“June saw continued growth in prices in Wellington reaching $685,000, up 10.5% on last year. Record prices were achieved in Carterton District $565,000 and Lower Hutt City $665,000. New listings in the Wairarapa decreased 4.6%, whilst new listings in Wellington increased slightly by 1.1% annually. However, total inventory decreased 17.5% year-on-year and with only 11 weeks’ total inventory available, it is likely to be pushing up prices in the region. There are still lots of first home buyers around and more investors are coming back into the market which is pushing up demand even further. In Wellington City, a 91-block apartment came onto the market and 40 apartments sold on the opening night. There have also been quite a few sales from off-the-plan town houses. Many expats that are coming back into the country are looking to buy and want to get back into the market. Banks are making it hard for second and third homeowners, increasing the time it takes to approve finance applications from 5 to 10 days. The market will continue to be busy over the coming weeks as people who are usually on holiday overseas, are focusing their attention on home renovations, downsizing or upsizing. It is expected that market activity will level out at some point. Prices are still good so people are selling but once more stock comes onto the market, demand should level out.” (REINZ)

The current Days to Sell of 34 days is less than the 10-year average for June of 39 days. There were 11 weeks of inventory in June 2020 which was three weeks more than the same time last year.

Wellington REINZ

Regional Analysis - Nelson/Marlborough

“Median prices in the Nelson/Marlborough/Tasman region all saw increases with house prices in Nelson seeing the largest increase at 13.2% to $601,500 compared to this time last year. The number of sales in Nelson in the $1,000,000+ price bracket increased 11.3% from the same time last year, which has likely pushed up prices. The REINZ House Price Index for the Tasman/Nelson/Marlborough/West Coast region also reached a new high of 2,537, up 8.0% yearon-year. Interestingly, annual sales volumes in Tasman and Marlborough didn’t move, however, sales in Nelson decreased 7.8%, the only region in the South Island to see a fall in sales. On the flipside, new listings in the Nelson & Bays area increased 23.6% compared to the same time last year. Marlborough recorded the biggest decrease in new listings, down 13.5% on last year. The lack of new listings in Marlborough has resulted in higher numbers at open homes and multi offers across the board. The market remains active with strong enquiry from out of town buyers as well as a growing expat community. The temporary removal of LVR’s has assisted but bank lending approvals remain hard for some buyers. The area has a range of positive economic benefits and a great lifestyle that will continue to attract investment in the region.” (REINZ)

The current Days to Sell of 34 days is less than the 10-year average for June which is 40 days. There were 24.5 weeks of inventory in June 2020 which was 10 weeks more than the same time last year.

Nelson REINZ

Regional Analysis - West Coast

“The West Coast saw a 15.8% increase in median prices compared to last year, reaching $220,000. Sales were also up 43.2% year-on-year, the highest increase across all regions and the highest June sales count in 14 years. The high number of sales also meant that inventory levels dropped and were recorded at its lowest level (278 properties) since records began in 2007. On the flipside, new listings increased 32.4% annually, with 45 new listings. The busy activity coastwide was a welcome surprise with more choice for buyers. Enquiries from the retiree market were possibly spurred on by an excellent spell of good weather and the desire for New Zealanders to get out and see the region post-lockdown. It is expected that house prices will remain steady over the coming months with pressure on supply and demand on available listings.” (REINZ)

The current Days to Sell of 96 days is much higher than the 10-year average for June which is 71 days. There were 55 weeks of inventory in June 2020 which was 13 weeks more than the same time last year

West Coast REINZ

Regional Analysis - Canterbury

“The Canterbury market continues to remain steady with a median price of $469,000, up 5.4% compared to the same time last year. On the flipside, Canterbury was one of four regions to see a decrease in the number of new listings, down 1.8% compared to June 2019. Low interest rates continue to draw first home buyers into the market. There are approximately 30% more investors in the market compared to this time last year, likely because of less restrictions compared to a year ago. There has been an increase in the number of attendees at open homes and online enquiries have been very active. There has been good activity in the lower mid end of the market which seems to be the stronger end of the market at the moment. It is hard to tell how the market will perform in the coming months as there are many factors to take into consideration, but it is expected to remain steady for at least the next few months.” (REINZ)

The current Days to Sell of 44 days is more than the 10-year average for June which is 36 days. There were 28 weeks of inventory in June 2020 which was 11 weeks more than the same time last year.

Canterbury REINZ

Regional Analysis - Otago

“The Queenstown-Lakes District remains steady with a slight -1.0% decrease in median prices to $920,000 compared to this time last year. However, sales increased 12.9% year-on-year. There has been increased interest from buyers wanting to purchase a holiday home. Low interest rates are helping first home buyers who are more present in the market compared to last year. Investors are still waiting and hoping prices will drop. Looking forward, the market is expected to remain busy and active.” (REINZ)

“Median prices in Dunedin are up year-on-year by 18.6%, with the number of properties sold also increasing 1.6%.
Looking to the wider region, median prices in Otago increased 21.7% on last year, the second highest increase
in median prices across all regions. We are seeing more first home buyers in the market and investors are coming
back into the market. There are also good numbers at open homes and more listings coming onto the market.
Access to finance is hard for some buyers with some delays in approvals.” (REINZ)

The current Days to Sell of 35 days is less than the 10-year average for June which is 39 days. There were 18 weeks of inventory in June 2020 which was 11 weeks more than the same time last year.

Otago REINZ

Regional Analysis - Southland

“The Southland region saw a 19.8% increase in median prices from $283,750 in June 2019 to $340,000 in June 2020. Additionally, the REINZ House Price Index increased 12.2% year-on-year, the largest increase for the South Island. Sales volumes also increased 27.7% annually, the second highest increase in sales volumes across all regions and the highest June sales count in 13 years. The market has been particularly busy this month with approximately 50% more attendees at open homes compared to last month. New listings also increased significantly by 59.0%, the highest increase across all regions. There have been similar number of investors in the market, likely attracted by the low interest rates. The increase in activity across the market is likely due to the post-lockdown catch-up currently occurring. It will be interesting to see how the market will react in the coming months as we near election time.” (REINZ)

The current Days to Sell of 33 days is less than the 10-year average for June which is 40 days. There were 24 weeks of inventory in June 2020 which was 13 weeks more than the same time last year.

Southland REINZ