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Regional Commentary and Property Market Statistics - November 2019

Market Statistics

Property Brokers 16 Dec 2019

PB030482 - Regional Commentary & Property market Statistics 

The number of residential properties sold across New Zealand in November decreased by -1.9% from the same time last year to 7,405 down from 7,550 (145 fewer properties), although it was the highest number sold since May this year.  

For New Zealand excluding Auckland, the number of properties sold decreased by -6.1% when compared to the
same time last year (to 5,070 down from 5,402) – again, the highest they’ve been since May this year.

Bindi Norwell, Chief Executive at REINZ says: “November was a very strong month price wise, with record median
prices seen in 10 regions and a record equal in Manawatu/ Wanganui. This is the highest number of regional records we’ve seen in a single month since March 2005. Additionally, the country saw a new national record median price of $630,000 and 24 territorial authorities around the country saw record median prices including Whangarei District, Auckland City, Tauranga City, Napier City, Kapiti Coast District, Lower & Upper Hutt Cities, Nelson City, Christchurch City, Dunedin City and Invercargill City

Two regions experienced an annual decrease in median price – Northland, with a fall of -1.2% from $505,000 in November 2018 to $499,000 in November this year and Tasman, with a fall of -3.7% from $625,000 in November 2018 to $602,000 in November this year

Median house prices in Auckland increased by 2.9% to $885,000 – up from $860,000 at the same time last year –
the highest price in 32 months. These results are in line with the REINZ House Price Index (HPI) which saw property values in Auckland increase 2.7% annually to a new record high of 2,923.

Additionally, a record equal median high was recorded in Manawatu/Wanganui of $400,000, the same price as in
October 2019.

Record median prices were recorded in:

 

• Waikato with an 11.3% increase to $590,000 up from $530,000 at the same time last year
• Bay of Plenty with a 7.8% increase to $636,000 up from $590,000 at the same time last year
• Hawke’s Bay with a 14.0% increase to $535,800 up from $470,000 at the same time last year
• Taranaki with an 8.5% increase to $407,000 up from $375,000 at the same time last year
• Wellington with a 12.1% increase to $695,000 up from $620,000 at the same time last year
• Nelson with a 16.6% increase to $610,000 up from $523,000 at the same time last year
• Marlborough with an 8.4% increase to $488,000 up from $450,000 at the same time last year
• Canterbury with a 5.2% increase to $468,000 up from $445,000 at the same time last year
• Otago with a 14.4% increase to $540,000 up from $472,000 at the same time last year
• Southland with a 16.4% increase to $320,000 up from $275,000 at the same time last year.

 

Regional Analysis - Auckland

“The Auckland region recorded a median price increase of 2.9% year-on-year sitting at $885,000. Auckland City also reached a new record median high of $1,030,000, beating its previous record of $1,025,000 set in March 2017. The REINZ House Price Index reached a new high of 2,923, with a 2.7% annual increase. Although, the median price on the North Shore decreased by -6.2% from $1,050,000 in November 2018 to $985,000 in November 2019. Sales in the region increased 8.7% compared to the same time last year with 2,335 sales, the most sales in the month of November since November 2015, and the highest sales count since May 2019. The number of auctions has also increased from 536 properties in November 2018 to 754 properties in November 2019. There has been a lot of positive activity from the first home buyer market. Whilst median days to sell have decreased a couple of days in Auckland region (-2 days), it has increased 15 days in the Franklin District. Interestingly, there has been an increase in the number of rental investment buyers in the Franklin area, but they are interested in properties that already meet the new code. Overall, there has been an increase in the number of buyers interested in the area, with more attendees at open homes, which we expect to continue into the New Year. The Auckland market should remain strong in the first two quarters of next year, however, with 2020 being an election year, the market may typically be conservative towards the second half of the year.” (REINZ)

The current Days to Sell of 35 days is above the 10-year average for November which is 33 days. The level of inventory available for sale currently sits at 18 weeks, one week less than in November 2018.

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Regional Analysis - Northland

“In November, the Northland region saw a decrease in the median price dropping -1.2% to $499,000 year-on-year. However, the Whangarei District experienced a record median price of $535,000, up from its previous record median price of $530,000 recorded in January 2019. Days to sell has increased by 3 days from 43 in November 2018 to 46 in November 2019. Sales volumes in the region were down -9.9%. We saw new listings increase in early November, but they levelled out again resulting in a -11.7% decrease in new listings compared to November 2018. Properties under $500,000 are limited, which are popular with first home buyers. There has been strong levels of enquiry for properties over the $1,000,000 range, although sales in this price bracket are down. The increase in prices in the Auckland region is giving vendors in the Northland region the confidence to list, however, they have higher expectations in terms of asking prices. The market may start to quieten down as we head into the Christmas holidays, but we should still see steady enquiry, and a return to the current level of activity in early 2020.” (REINZ)

The current Days to Sell of 46 days is less than the 10-year average for November which is 49 days. The level of inventory available for sale currently sits at 31 weeks, 5 weeks more than in November 2018

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Regional Analysis - Waikato

“The Waikato region saw continued price growth with a record median price of $590,000, up 11.3% on last year. Additionally, 5 of the 10 Waikato Districts saw record median prices – Hamilton City ($620,000), Matamata-Piako District ($530,000), Taupo District ($540,000), Waikato District ($585,000) and Waipa District ($646,000). Inventory was down -17.4% annually and the lack of available properties and lower priced properties on the market is likely to be contributing to the increase in prices. New listings in the Waikato were down -8.9%, with new listings in the Coromandel decreasing significantly by -27.8% compared to November 2018, the largest decrease across the country. On the flipside, sales volumes in the region increased 5.6% with 816 sales in November 2019, compared to 773 in November 2018. There have been a few vendors who have been holding out for higher prices, but generally vendor expectations are meeting the market. There continues to be a lot of multi offers presented, due to the lack of lower priced properties on the market. We’ve also seen less attendees at open homes due to a decrease in auctions scheduled. However, we are still receiving good interest in the number of people wanting appraisals, ready to go to market next year.” (REINZ)

The current Days to Sell of 35 days is less than the 10-year average for November which is 41 days. The level of inventory available for sale currently sits at 14 weeks, the same as in November 2018.

 

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Regional Analysis - Bay of Plenty

“The Bay of Plenty region experienced a record median price of $636,000, which coincides with the increase in the number of sales in the $750,000+ price brackets from 26.2% in November 2018 to 31.0% in November 2019. Tauranga City saw a record median price of $700,000 and Whakatane District saw a record median price of $565,000, 23 months since its prior record in December 2017. Days to sell decreased from 40 days in November 2018 to 36 days in November 2019 likely due to the lack of properties available on the market. Inventory (1,411) remains lower compared to this time last year (1,682), and with a decrease in new listings (-12.6%) compared to November 2018, buyer interest remains high for any new properties that come onto the market. On the flipside, sales volumes were down -7.8%. There is more activity and it is generally busier across all aspects of the market. In Rotorua, we are seeing less attendees at open homes compared to the same time last year, and we expect the usual quieter period over the holiday season.” (REINZ)

 

The current Days to Sell of 36 days is less than the 10-year average for November which is 45 days. The level of inventory available for sale currently sits at 13 weeks, three weeks less than in November 2018.

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Regional Analysis - Gisborne

“The median price in Gisborne increased by 14.8% from $341,600 in November 2018 to $392,000 in November 2019. As prices continue to rise it is resulting in more first home buyers having to borrow additional funds from family in order to purchase. The REINZ House Price Index for the Gisborne/Hawke’s Bay region reached a new high of 3,011, up 14.4% compared to the same time last year. New listings were down -1.5% annually but they were slightly better than last month. However, inventory still remains low with only 86 properties available on the market. Days to sell decreased from 35 in November 2018 to 33 in November 2019, likely due to a busy market and properties selling fast. There has been less investors compared to last month due to the lack of properties available. Over the next few months the market will remain tight, with plenty of enquiry leading up to the holiday period.” (REINZ)

 

The current Days to Sell of 33 days is less than the 10-year average for November which is 38 days. The level of inventory available for sale currently sits at 7 weeks, one week less than in November 2018.

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Regional Analysis - Hawke's Bay

“A 14.0% increase in median house prices saw the Hawke’s Bay region achieve another record median price of $535,800. Napier City also reached a record median high of $561,000, while the Central Hawke’s Bay District had a record median price of $404,000. Sales volumes were down -8.4% year-on-year but increased 10.1% month-on-month from 247 in October 2019 to 272 in November 2019. With only 325 new listings to the market in November 2019 (-17.9%) and 7 weeks’ total inventory available, there is very limited supply and strong demand which is likely to be pushing up prices in the region. This has also resulted in increased vendor expectations in terms of prices. There continues to be a strong presence from first home buyers in the market. There has also been a slight uplift in interest from investors. We expect this activity to continue over the coming months and lead into the New Year.” (REINZ)

 

The current Days to Sell of 32 days is less than the 10-year average for November which is 40 days. The level of inventory available for sale currently sits at 7 weeks, two weeks less than in November 2018.

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Regional Analysis - Taranaki

“In November, the Taranaki region experienced a record median price of $407,000. New Plymouth District also saw a record median high of $473,000, up 1.7% since its prior record of $465,000 in August 2019. Adversely, the region saw a -24.8% decrease in sales year-on-year, the lowest sales count for the month of November since November 2014, and with the lowest inventory it has ever seen (379). Anecdotally, we are seeing more first home buyers in the market compared to last year as they have had a chance to save a bigger deposit to comply with LVR regulations. We have seen an increase in the number of genuine investors than we have for the last 2 years, especially toward the later part of this year. The increase in demand from first home buyers and investors in the region is putting pressure on prices, due to the lack of supply. Over the next few months, the market should remain steady with strong buyer activity.” (REINZ)

 

The current Days to Sell of 27 days is much less than the 10-year average for November which is 39 days. The level of inventory available for sale currently sits at 12 weeks, three weeks less than in November 2018.

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Regional Analysis - Manawatu/Whanganui

“The Manawatu/Wanganui market remained stable in November 2019, with a median price remaining at an equal high of $400,000, the same as last month, but up 19.0% year-on-year. Of the 7 districts, 3 in the region also experienced record median prices – Palmerston North City ($478,088), Manawatu District ($450,000) and Horowhenua District ($385,000). However, sales volumes in the region were down -4.3% annually with 401 sales. The REINZ House Price Index reached a new high of 3,412 with an annual increase of 19.7%, the second highest increase in the country. The local market is very active and being driven by first home buyers who are purchasing at the lower end of the market. The number of first home buyers has increased over the last 12 months, due to lower interest rates and good availability of finance. Vendors still have strong expectations in terms of asking price for their property. Listings in Feilding have remained consistent, however new listings in Palmerston North have increased compared to last month. Overall new listings are still down -10.6% compared to the same time last year and inventory is still at low levels (-21.9% YOY). We expect the market will track a little slow through the December/January holiday months, but things should return to the status quo in early February.” (REINZ)

 

The current Days to Sell of 24 days is much less than the 10-year average for November which is 38 days. The level of inventory available for sale currently sits at 9 weeks, two weeks less than in November 2018.

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Regional Analysis - Wellington

“The Wellington region is edging closer to the $700,000 mark with a record median price of $695,000. Additionally, 4 of the 8 Districts in the Wellington region also saw record median prices - Porirua City ($720,000), Lower Hutt City ($647,000), Kapiti Coast District ($635,478) and Upper Hutt City ($605,000). The Wellington market continues to be busy with more listings compared to last month, but less than this time last year. Properties are selling quickly with days to sell in the region dropping by 3 days from 32 days in November 2018 to 29 days in November 2019. We are seeing more investors in the market due to the attractiveness of low interest rates and better capital returns. There are a few more off the plan builds in progress, mainly in the CBD, and new builds going up in outer suburbs such as Upper Hutt and Wainuiomata. We expect the market to continue to move at the same pace over the next couple months, except for the usual seasonal effects.”(REINZ)

 

The current Days to Sell of 29 days is less than the 10-year average for November of 31 days. The level of inventory available for sale currently sits at seven weeks, the same as in November 2018.

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Regional Analysis - Nelson/Marlborough

“In November, Nelson saw a record median price of $610,000, the first time it has passed the $600,000 mark, which coincides with the increase in properties sold in the $750,000 - $999,9999 price brackets, increasing from 10.3% in November 2018 to 20.7% in November 2019. Nelson City also saw a record median price of $610,000, 14 months since its prior record in September 2018. Additionally, Nelson experienced a 6.6% increase in new listings, one of only two regions to see an annual increase. The Marlborough region also experienced a record median price of $488,000, with an 8.4% increase compared to November 2018. The Tasman region was one of only two regions that experienced a negative movement in median price, dropping -3.7% from $625,000 in November 2018 to $602,000 in November 2019. The REINZ House Price Index reached a new high of 2,463 in the Nelson/Marlborough/Tasman/West Coast regions, with an annual increase of 8.5%. Anecdotally, many auctions are being brought forward with acceptable preauction offers, as well as active multiple offers. The market continues to be positive, with busy open homes driven by locals, visitors and expats, which should continue over the next couple of months.” (REINZ)

 

The current Days to Sell of 30 days less than the 10-year average for November which is 35 days. The level of inventory available for sale currently sits at 13 weeks, the same as in November 2018.

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Regional Analysis - West Coast

“The West Coast region saw the median price increase 17.1% annually to $209,000, and up from October’s median of $199,000 showing the continued liveliness of the West Coast market. Sales volumes increased 7.5% from 40 properties in November 2018 to 43 in November 2019, which is the highest sales count for the month of November in the West Coast since November 2011. Anecdotally, we have received more interest from investors who are enquiring about capital returns. We are also starting to see various building companies looking for vacant land in the area. First home buyers are re-entering the market, whereas 12 months ago there was little to no activity from them. We are experiencing renewed confidence in the local economy, and more people are attracted to the ease of living in the region.” (REINZ)

 

The current Days to Sell of 72 days is less than the 10-year average for November which is 74 days. The level of inventory available for sale currently sits at 43 weeks, eight weeks less than in November 2018.

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Regional Analysis - Canterbury

“In November, the Canterbury region experienced a record median price of $468,000. Christchurch City also saw a record median price of $485,000, up from last month’s record of $477,000. The REINZ House Price Index reached a new high of 2,550 with an annual increase of 3.8%, indicating there is still strength in the market. Sales in the region decreased -2.1% annually to 977 sales. Although new listings are down -2.7% annually, they have increased from 1,393 last month to 1,661 this month. Anecdotally, we are seeing high numbers of attendees at open homes, especially in the lower price brackets. Houses in the upper price brackets are receiving less interest, but they are still receiving steady enquiry. We have seen many approved buyers ready to purchase, but they are prepared to wait for the right one. Multi offers and competitive bidding is common at auctions. In Timaru, we are seeing less rental stock in the lower price brackets as they are being sold if they don’t meet the newinsulation requirements. Looking forward into the New Year, we expect a busy market with lots of activity in Christchurch.” (REINZ)

 

The current Days to Sell of 35 days is higher than the 10-year average for November which is 32 days. The level of inventory available for sale currently sits at 18 weeks, the same as in November 2018.

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Regional Analysis - Otago

“The Queenstown-Lakes District experienced an annual decrease in the median price, down -4.5% to $945,000, likely due to fewer buyers in the market, something we haven’t seen for a while. Days to sell increased significantly from 33 days in November 2018 to 51 days in November 2019. However, sales were up 22% from 91 in November 2018 to 111 in November 2019. Although there is still a lack of listings on the market, interest rates are low, and we are seeing more confidence which the market is starting to react to and is likely to be causing an increase in sales. Looking across the wider Otago region saw a record median price of $540,000 and a 10.9% annual increase in new listings, one of only two regions which experienced an increase in new listings.” (REINZ)

 

“In November, there was a record median price of $520,000 in Dunedin City. However, sales decreased -19.3% year-on-year to 197. First home buyers are still very prevalent in the market, with those who have missed out during the year now stepping up to get onto the property ladder. Investors are also increasing in activity due to record low interest rates and the attraction of a rental income as demand drives rental increases.” (REINZ)

 

The current Days to Sell of 28 days is less than the 10-year average for November which is 32 days. The level of inventory available for sale currently sits at nine weeks, one week more than in November 2018.

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Regional Analysis - Southland

“The Southland region experienced a record high of $320,000, up 16.4% year-on-year, coinciding with the increase in the number of properties sold in the $500,000+ price bracket. There were 9.0% of sales recorded in this price bracket in November 2018 compared to 12.42% of sales recorded in November 2019. Invercargill City also saw a record median price of $332,000. However, the number of properties sold decreased -3% when compared to November 2018. Additionally, median days to sell in Southland dropped below 20 days and, at 18 days, is the lowest since August 2007. Interestingly, the REINZ House Price Index was recorded at 3,227, a 20.8% annual increase and the region with the highest year-on-year increase. There has been a slight uplift in first home buyers in the region over the last few months which is positive to see. We expect the market to slow over the summer period, but it should return to a steady pace in the New Year.” (REINZ)

 

The current Days to Sell of 18 days is much less than the 10-year average for November which is 33 days. The level of inventory available for sale currently sits at nine weeks, two weeks less than in November 2018.

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