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Regional Commentary and Property Market Statistics - November 2020

Market Statistics

Property Brokers 11 Dec 2020

REINZ stats_November2020The number of residential properties sold in November across New Zealand increased by 29.6% from the same time last year (from 7,627 to 9,885) – the highest number of properties sold in 164 months (March 2007) and the highest November sales count since November 2006 (14 years), according to the latest data from the Real Estate institute of New Zealand (REINZ).

For New Zealand excluding Auckland, the number of properties sold increased by 18.3% when compared to the same time last year (from 5,205 to 6,157) – the highest number of properties sold since March 2016 (56 months) and the highest November sales volumes since November 2006 (14 years).

Bindi Norwell, Chief Executive at REINZ says: “November was an incredible month in terms of the number of properties sold, with just shy of 10,000 properties sold over 30 days (9,885). The last time we saw a similar level of sales volumes was back in March 2007 – 164 months ago – before the national recession and Global Financial Crisis started impacting New Zealand’s property market.

“November saw more than half (10 out of 16) of the regions across the country with double-digit percentage increases in annual sales volumes showing how buoyant the market is. Part of this is likely to be attributed to people wanting to purchase property ahead of Christmas, partly due to the Reserve Bank announcing in early November that it would undertake a consultation in December to re-introduce LVRs earlier than planned, but also due to this underlying fear that prices might increase even further in the coming months,” continues Norwell.

Regions with the largest increase in annual sales volumes during November were:
• West Coast: +74.4% (from 43 to 75 – 32 more houses) – the highest since March 2004
• Northland: +36.1% (from 219 to 298 – 79 more houses) – the highest since June 2016
• Canterbury: +31.7% (from 1,012 to 1,333 – 321 more houses) – the highest since March 2007
• Bay of Plenty: +29.5% (from 498 to 645 – 147 more houses) – the highest since May 2016
• Nelson: +25.8% (from 93 to 117 – 24 more houses) – the highest for the month of November in 18 years
• Waikato: +21.9% (from 828 to 1,009 – 181 more houses) – the highest since September 2015.

Regional Analysis - Auckland

“The Auckland region has shown continued strength in November with prices increasing 16.4% year-on-year to a record median of $1,030,000 – the fourth consecutive month that Auckland saw a new record price. Three districts in Auckland saw new record median prices in November, including Franklin District ($789,000), North Shore City ($1,225,000) and Rodney District ($1,015,000) – the first time Rodney District exceeded the million-dollar mark. The number of properties sold increased 53.9% with 3,728 sales in November, up from 2,422 in November 2019 (an additional 1,306 properties) – this was the highest number of properties sold in a November month since records began.

The Auckland market has remained strong with 5,195 new listings in November, an increase of 45.9% from the same time last year. Open homes have been busy, with some properties seeing more than 50 people through during the campaign period. First home buyers have been active, particularly with new builds and in the sub-$900,000 category with the help of low interest rates and KiwiSaver. Many investors are adding to their stock levels, buying between one and four new properties as they try to purchase ahead of the reintroduction of LVRs and take advantage of the low interest rates.” (REINZ)

The current Days to Sell of 30 days is less than the 10-year average for November which is 33 days. There were 11 weeks of inventory in November 2020 which is 7 weeks less than the same time last year.

 

Regional Analysis - Northland

“The Northland region saw a median price of $589,000 in November 2020, up 16.6% from the same time last year. The REINZ House Price Index for Northland increased 12.7% year-on-year to a record level of 3,322. The number of properties sold increased 36.1% year-on-year from 219 to 298, displaying the ongoing strength of the property market in the region. New listings for Northland were down -10.8% year-on-year with 405 new listings coming to the market in November 2020.

Inventory saw a decrease of -36.0% to a record low of 813. The incoming Healthy Homes Standards and increased expectations from landlords has forced owners to either commit and invest money into their current stock, upgrade, or move on. Buyers have been finding getting pre-approval difficult without delays from the banks, which ends up in some buyers missing out on auctions or deadline sales. Looking forward over the summer months, we would expect the current market conditions to prevail.” (REINZ)

The current Days to Sell of 41 days is less than the 10-year average for November which is 47 days. There were 24 weeks of inventory in November 2020 which is 7 weeks less than the same time last year.

 

Regional Analysis - Waikato

“Median house prices in the Waikato region increased 21.9% year-on-year in November to a record high of $670,000 – the seventh consecutive month of new or equal records. 1,009 properties sold in November, up 21.9% from the same time last year and the highest for a November month in 17 years. The REINZ House Price Index for Waikato increased 15.0% year-on-year to a record level of 3,562.

Open homes are still busy, due to a combination of more buyers in the market and decreasing stock levels for them to view as inventory is down -25.3% year-on-year to a record low of 1,187. First home buyers are struggling to find property they can afford and are finding it difficult to compete against investors who are opting to invest their money in property while interest rates are low. As prices are rising nationally, there has been an increase in out-of-town investors, particularly from Auckland as prices in the Waikato are comparably more affordable.” (REINZ)

The current Days to Sell of 28 days is less than the 10-year average for November which is 37 days. There were 8 weeks of inventory in November 2020 which is 6 weeks less than the same time last year.

 

Regional Analysis - Bay of Plenty

“The Bay of Plenty saw a record median house price of $753,000 in November 2020, up 18.4% from the same time
last year. The number of properties sold increased 29.5% year-on-year to 645 - the highest level since May 2016. When combined with the -5.9% decrease in new listings, this resulted in a decrease in inventory of -34.3% to a record low of 927, or seven weeks.

Investors have remained active in the market as they are taking advantage of the low interest rates and hurrying to get in before the LVR restrictions change, however, there are more cash buyers in the market than the same time last year. Properties are selling quickly, with median days to sell at a record low of 30 days.” (REINZ)

The current Days to Sell of 30 days is much less than the 10-year average for November which is 42 days. There were 7 weeks of inventory in November 2020 which is 6 weeks less than the same time last year.

 

Regional Analysis - Gisborne

“Gisborne Region’s median house price increased 36.2% year-on-year to $530,000 in November 2020 and the region saw 67 properties sold in November 2020, down -4.3% from the same time last year (3 fewer properties). Auctions are still the most popular method of sale with 74.6% of all sales sold under the hammer, up from 54.3% in November 2019. All types of buyers were active in the market during November, from first home buyers to owner occupiers trading up, through to investors all looking to take advantage of the low interest rates and get in before the reintroduction of LVRs. We would anticipate the market continuing in a similar fashion over the next few months.” (REINZ)

The current Days to Sell of 33 days is less than the 10-year average for November which is 37 days. There are 10 weeks of inventory in November 2020 which is 3 weeks more than the same time last year.

 

Regional Analysis - Hawke's Bay

“The Hawke’s Bay region saw a record median price in November of $653,500, up 21.9% from the same time last year as prices continue to exceed vendor expectations, particularly in the mid-to-high end properties. 270 properties were sold during November, a decrease of -1.8% year-on-year from 275 properties in November 2019. Total inventory was down -23.5% from the same time last year to a record low of 329, or six weeks.

Normally the market tends to slow down in the approach to Christmas, however, this year has continued to go against the expected and activity is expected to remain strong through until the end of the year. The REINZ House Price Index for the Gisborne/Hawke’s Bay region increased 22.3% year-on-year to a record level of 3,688 – the strongest annual increase across the country.” (REINZ)

The current Days to Sell of 28 days is less than the 10-year average for November which is 37 days. There were 6 weeks of inventory in November 2020 which is 1 week less than the same time last year.

 

Regional Analysis - Taranaki

“Taranaki saw a record median house price of $496,000 in November 2020, up 21.7% from November 2019. The low levels of available stock have continued to place upward pressure on prices, as inventory is down -27.4% from the same time last year. This is due in part to the increased volume of sales which were up 6.3% year-on-year with 185 properties sold in November 2020.

Low interest rates have contributed to the strong levels of demand from purchasers, putting additional pressure on prices. An increase in out of town purchasers is also impacting the market by increasing competition for each available property. Properties are selling quickly with days to sell at a record low of 21 days.” (REINZ)

The current Days to Sell of 21 days is much less than the 10-year average for November which is 36 days. There were 10 weeks of inventory in November 2020 which is 2 weeks less than the same time last year.

 

Regional Analysis - Manawatu/Whanganui

“Median house prices in Manawatu/Wanganui region increased 25.8% in November 2020 to a record $503,000, from $399,750 in November 2019 – this is the fifth consecutive month of new record prices being recorded. 413 properties were sold in November, up 0.2% from the same time last year. Inventory reached a record low in November, decreasing -38.4% annually to 430, or six weeks. Attendance at open homes has remained high, with many properties receiving multi-offers and strong prices.

Investors had a mixed reaction in November with some looking for more properties due to low interest rates from the banks and low returns for their money otherwise, whilst other investors have been selling their investment properties as the new tenancy laws take effect. Although demand is high, there are less cash buyers than this time last year and purchasers are taking their time and ensuring they fulfil their due diligence.”(REINZ)

The current Days to Sell of 22 days is much less than the 10-year average for November which is 35 days. There were 6 weeks of inventory in November 2020 which is 3 weeks less than the same time last year.

 

Regional Analysis - Wellington

“Wellington saw a record median house price of $790,000 in November 2020, up 14.5% from the same time last year. Kapiti Coast District, Carterton District and Lower Hutt City also reached record median prices in November. Properties are selling quick, with median days to sell down to 28 days – the lowest for a November month since 2006. 859 properties sold in November, up 6.3% year-on-year.

Many first home buyers and owner/occupiers are missing out as they are competing with investors to secure properties. Getting access to finance in a timely manner continues to be an issue, with most banks taking around 10 days to process applications due to the sheer volume request for loans. On the other side, we are also seeing some investors exiting the market as the new tenancy laws approach.” (REINZ)

The current Days to Sell of 28 days is less than the 10-year average for November of 30 days. There were 6 weeks of inventory in November 2020 which is 1 week less than the same time last year.

 

 

Regional Analysis - Nelson/Marlborough

“Record median prices were reached in the Nelson, Marlborough and Tasman regions in November 2020, up 9.8%, 19.4% and 28.0% respectively from the same time last year. Nelson reached a record median price of $670,000;
Marlborough saw a record median price of $585,250; and Tasman saw a record median price of $774,400. Open homes have registered high levels of attendance across all price brackets and properties are selling quick, generally with multiple offers made.

Sales volumes were up 25.8% for Nelson (the highest for a November month since 2002), down -5.3% for Marlborough and up 13.0% for Tasman (the highest for a November month since records began). Nelson and Marlborough both saw record low levels of inventory with six week and eight weeks respectively.” (REINZ)

The current Days to Sell of 29 days is less than the 10-year average for November which is 32 days. There were 7 weeks of inventory in November 2020 which is 6 weeks less than the same time last year.

 

Regional Analysis - West Coast

“The West Coast saw median prices increase 17.2% annually in November 2020 to $245,000. Sales volumes increased 74.4% year-on-year with 75 properties sold – the highest number of properties sold since March 2004, showing how much interest there is in the West Coast. Inventory for the region was down -34.5% year-on-year to a record low of 215, however, this is still 36 weeks of available stock. Activity levels have remained strong with out of town purchasers coming to the region to find a reasonably priced property.” (REINZ)

The current Days to Sell of 34 days is much less than the 10-year average for November which is 70 days. There were 36 weeks of inventory in November 2020 which is 7 weeks less than the same time last year.

 

Regional Analysis - Canterbury

“Canterbury reached a record median price in November of $526,000, up 13.1% year-on-year. Christchurch City and Waimakariri District also reached record median prices in November of $547,500 and $527,500 respectively. The REINZ House Price Index for Canterbury increased 9.8% year-on-year to a record level of 2,798. The Canterbury market has remained busy with a lot of first home buyers looking for property in the sub-$500,000 bracket.

Investors are also busy, but at times are being beaten to the property by first home buyers. 1,333 properties were sold in November 2020, an increase of 31.7% from the same time last year and the highest level of sales for a November month since records began.” (REINZ)

The current Days to Sell of 27 days is less than the 10-year average for November which is 30 days. There were 10 weeks of inventory in November 2020 which is 8 weeks less than the same time last year.

 

Regional Analysis - Otago

“The Queenstown Lakes District saw median house prices increase 14.2% year-on-year to $1,085,000 in November 2020, up from $950,000 in November 2019. Many first home buyers are being priced out of the market and finding it difficult to compete with investors and out of town buyers, particularly as they are also finding it hard to secure finance from the banks. Property is selling quickly with days to sell at 35 days, down 16 days from the same time last year.” (REINZ)

“Dunedin City reached a record median house price of $607,095 in November 2020, up 16.7% from the same time last year and the first time the city has exceeded the $600,000 mark. First home buyers are particularly active at open homes, trying to secure their spot in the market before prices increase further. ‘Mum and Dad’ investors are increasing their activity in the market, also trying to secure investment properties before the re-introduction of LVRs. The number of properties sold in November increased 16.7% to 238, up from 204 at the same time last
year. High sales numbers combined with decreasing new listings is continuing to add pressure to prices.” (REINZ)

The current Days to Sell of 27 days is less than the 10-year average for November which is 31 days. There were 11 weeks of inventory in November 2020 which is 2 weeks more than the same time last year.

 

Regional Analysis - Southland

“The Southland region saw a record median house price of $395,500 in November 2020, up 23.6% year-on-year. The number of properties sold increased 17.9% year-on-year, while new listings decreased -2.0% further affecting stock levels for the region and placing upward pressure on prices. Open homes have been busy with first home buyers, investors and some out of town buyers.

Property is selling quickly with the median days to sell for the region at 21 days, the lowest across all of New Zealand (along with Taranaki), and down 7 days from October 2020. The REINZ House Price Index for Southland increased 15.9% year-on-year to a record level of 3,731 – the highest for the South Island.” (REINZ)

The current Days to Sell of 21 days is much less than the 10-year average for November which is 31 days. There were 9 weeks of inventory in November 2020 which is the same as the same time last year.