<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=275984476158575&amp;ev=PageView&amp;noscript=1">

Regional Commentary and Property Market Statistics - October 2018

Market Statistics

Property Brokers 14 Nov 2018

45992927_xl

The number of residential properties sold across New Zealand increased by 15.5% year-on-year - the highest number of sales in five months according to the latest market statistics from the Real Estate Institute of New Zealand (REINZ).

For New Zealand excluding Auckland, the number of properties sold increased by 15.6% – 654 more properties when compared to October 2017 (from 4,189 to 4,843). In Auckland, the number of properties sold increased by 15.2% or 257 more properties, from 1,691 in October 2017 to 1,948 in October 2018. Regions with the largest increased in sales volumes were Marlborough, Southland, Canterbury and Otago.

Bindi Norwell, Chief Executive at REINZ says: “October saw the real estate market spring back into action with the volume of sales increasing nationally by 15.5% when compared to the same time last year. This is the highest number of sales for a month of October in 2 years and is the equivalent of an additional 29 houses sold each day across the whole month. It should also be noted that last year’s sales volumes were impacted by the election.

Regionally, we saw increased sales volumes in 13 out of 16 regions with 10 of those 13 regions seeing double digit increases. But the stand out results belong to the South Island with the highest volume growth seen in the southern half of the country – particularly in Marlborough which saw a 46.2% increase when compared to the same time last year which is a significant increase.

September was very quiet in terms of the number of properties sold and we predicted that with the increase in listings coming to the market that October’s sales would be much stronger than September’s. With strong sales this month, it’s our belief that in the current market that New Zealand is taking a different path to what we’re seeing across the Tasman at this point in time.

October also saw the introduction of the foreign buyer ban and while there have been pockets around the country of people talking about a rush ahead of the ban. With Statistics New Zealand’s September quarter figures showing the lowest level of foreign buyers since they began keeping records, we’re confident that most of October’s lift in volume is attributable to the spring lift rather than a rush of foreign buyers looking to get in ahead of the ban,” continues Norwell.

 

Regional Analysis - Auckland

“The Auckland market had a more upbeat feel during October due to a significant increase in listings (+20.1%), including new developments in key residential suburbs. Days to sell also decreased by three days year-on-year and the median price was at its highest point in seven months showing signs of a positive market. Additionally, a record median price was recorded for Waitakere City of $825,500. There are plenty of buyers keeping demand at a high level, however they are being cautious.

There has been an influx of first home buyers that are looking at higher priced properties as well as affordable properties. There has also been a big interest in KiwiBuild properties. Investor enquiry has decreased due to uncertainty of how new legislation will impact profitability. As always, good quality properties are selling fast. The market will most likely continue in this upbeat state until Christmas."

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was a fraction more than what was expected and the observed large increase in sales count was more than expected. The current Days to Sell of 36 days is more than the 10-year average for October which is 33 days. The level of inventory available for sale currently sits at 25 weeks, four and a half weeks more than in October 2017.

 Akld_Oct18

 

Regional Analysis - Northland

“October saw a welcomed spring uplift in listing numbers for the Northland market. New listings were up 26.2%, adding another 545 more houses to the market giving the region a total of 1,370 available properties. We see some investor properties coming to market due to landlords not wanting to cover the upgrade costs to meet the upcoming Healthy Homes legislation requirements.

We also see a sharp decline in investor interest compared to 12 months ago, indicating a cautious wait and see approach to how legislative changes will affect the market. However, the overall sales volume is strong, with a 38.5% increase compared to September. The increase in listing numbers will most likely continue up until Christmas suggesting a busy real estate market over the coming months.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed decrease in median price was slightly greater than expected and the observed gigantic increase in sales count was much greater than expected. The current Days to Sell of 43 days is less than the 10-year average for October which is 51 days. The level of inventory available for sale currently sits at 38 weeks, nine weeks more than in October 2017.

 NTHLD_Oct18

 

Regional Analysis - Waikato

“The Waikato market continues to see steady interest from people across all price ranges in October. For first home buyers, we are beginning to see signs that finance is starting to tighten up. Regardless, there are still a lot of enquiries and there are currently more sales in the middle and higher price brackets with many out of towners still coming to the region. There was especially a big increase in sales for properties valued from $600,000 to $1 million plus and October saw record median prices for Hamilton City and Waitomo District of $565,000 and $254,000 respectively. Multi offers continue to be common across Waikato.

In Taupo, investors continue to be active with the rental shortage and a good range of houses in the $300,000 price bracket to choose from. Overall, well marketed properties get good attendance numbers at open homes, however we are noticing that buyers are becoming more selective. The Thames-Coromandel region has seen the spring uplift in holiday homes sales and they see that many previous appraisals have come to market during October, and buyer interest is at the same levels as last year. Listing numbers were up, with 893 new listings in the region, which indicates that the market will continue to be buoyant until the holiday season, even more so if listing numbers continue to increase.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed minute increase in median price was fractionally less than the expected increase and the observed increase in sales count was slightly larger than expected. The current Days to Sell of 35 days is less than the 10-year average for October which is 41 days. The level of inventory available for sale currently sits at 17 weeks, the same as in October 2017.

 WKTO_Oct18

 

Regional Analysis - Bay of Plenty

“The slow start to spring that the Bay of Plenty market experienced has now picked up in pace, resulting in a busier October with an increase of new listings. Tauranga City had a record median price of $667,500 – a $7,500 increase on the last record which was in May 2018. This time of year, we see a lot of professionals buying in preparation for work and school for next year. First home buyers are still active, though they are taking their time before making a final decision.

Vendors’ asking price remains at a similar level as the same time last year, with an increase of 2.8% leaving the average asking price at $638,391 across the region. Investors are being cautious due to coming changes to legislation. Overall, it is an active market that looks to stay that way for another few months before the traditional Christmas slowdown starts.“

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was larger than the expected minute increase and the observed increase in sales count was quite a bit smaller than expected. The current Days to Sell of 42 days is less than the 10-year average for October which is 47 days. The level of inventory available for sale currently sits at 16 weeks, one and a half weeks more than in October 2017.

 BOP_Oct18

 

Regional Analysis - Hawke's Bay

“The Hawke’s Bay market is positive and achieved a record median house price of $464,123, a 17.4% increase compared to October 2017. Buyer enquiry remains strong and we see that vendors are feeling confident and have raised the average asking price, but buyers are being cautious and are not rushing into making any decisions creating a longer negotiation period which is up 2 days on the same time last year.

Listings increased 20.6% compared to last month which means we are likely to see increased volumes in the coming months. Overall, the market is continuing as it did during September and at this point, with very little indication of any major changes leading up to Christmas. Hopefully, we will see a big increase in new stock during November.“

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was larger than expected and the observed big increase in sales count was less than expected. The current Days to Sell of 33 days is less than the 10-year average for October which is 38 days. The level of inventory available for sale currently sits at 10 weeks, half a week less than in October 2017.

 HB_Oct18

 

Regional Analysis - Taranaki

“The Taranaki market continues to be buoyant, with a new record median house price of $380,000, an 8.6% yearon-year increase. We also saw an annual increase of 21.5% of new listings coming to market, to the delight of a very active buyer pool. Purchases are occurring in all price brackets, with only a slight decrease in first home buyer enquiry.

New Plymouth experienced a pocket of overseas buyers purchasing prior to the Overseas Investment Act coming into force. Asking prices remain at the same levels as last month and it is most likely that we will continue to see more listings and a positive balanced market for a while longer.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was in contrast to the expected small decrease and the observed increase in sales count was a smaller than expected. The current Days to Sell of 28 days is much less than the 10-year average for October which is 40 days. The level of inventory available for sale currently sits at 17 weeks, two weeks more than in October 2017.

 TAR_Oct18

 

Regional Analysis - Manawatu/Whanganui

“The Manawatu/Whanganui market achieved a new record median house price of $344,000, a 20.2% year-on-year increase. Additionally, four out of seven districts in the region saw record median price increases – Horowhenua District - $315,000, Palmerston North City - $412,500, Tararua District - $237,500 and Whanganui District - $240,000. Prices continue to be pushed in an upwards direction as demand outstrips supply, and with new listings down -1.8% on the same time last year we expect this trend to continue.

First home buyer interest has doubled compared to 12 months ago, which is especially noticeable at open homes. Buyers indicate that it would be good if more properties come to the market in November as there is a continued demand.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was greater than expected and the observed large increase in sales count was greater than expected. The current Days to Sell of 26 days is much less than the 10-year average for October which is 39 days. The level of inventory available for sale currently sits at 14 weeks, the same as in October 2017.

 MAN_Oct18

 

Regional Analysis - Wellington

“The Wellington market saw more owner/occupiers purchasing their second home and upgrading in the process, which resulted in a 46.2% increase of the number of houses sold compared to last month. Many having ‘subject to sale’ clauses in the contracts. There was a slight activity increase across the board, with the only decrease seen in investor numbers. This, however, was balanced out by fewer investors buying more, keeping the investor volumes at the same levels as last month.

There is a big demand for rentals in general and the high rental fees are attracting the investors that are buying, while some are deciding to move their investment due to impending legislation changes. We will probably continue to see ‘subject to sale’ contracts more frequently going forward and the increase in stock levels (October saw a 10% uplift in numbers) will most likely also continue. November and December will be very busy.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed fractional decrease in median price was smaller than expected and the observed gigantic increase in sales count was much greater than expected. The current Days to Sell of 29 days is less than the 10-year average for October which is 31 days. The level of inventory available for sale currently sits at nine weeks, the same as in October 2017. This is the equal lowest (in terms of weeks) level of inventory of all the regions.

WGTN_Oct18 

 

Regional Analysis - Nelson/Marlborough

“The Nelson/Marlborough/Tasman market remains positive across the board and there are still buyers that are relocating from Auckland and other regions, suggesting that the region continues to be seen as affordable. The Nelson area is seeing the majority of relocated buyers and a lift in inventory of 8.3% in October compared to October 2017. In the Marlborough region, listings increased 16.4% whilst inventory remained at similar levels, up only 1.9%, compared to 12 months ago.

We see that a number of investors are now looking at new builds, which are priced higher than traditional investment properties. First home buyer activity has gone up again and it is most likely that it will remain active up until the end of December.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was smaller than expected and the observed large decrease in sales count was fractionally greater than expected. The current Days to Sell of 34 days is less than the 10-year average for October which is 35 days. The level of inventory available for sale currently sits at 15.5 weeks, half a week less than in October 2017.

 NEL_Oct18

 

Regional Analysis - West Coast

“The West Coast experienced good sales volumes during October, increasing 21.2% year-on-year. Prices remain at affordable levels compared to other parts of the country, and we see that smaller modern properties are attracting a lot of interest and we are finally seeing some activity in the higher priced rental investments. First home buyer inquiry is stable, but finance is still proving to be a bit tight.

There are a good number of investor enquiries as rental availability get squeezed. Although there hasn’t been any increase in new listings compared to October 2017, the market remains stable across the region and we see a continuing positive market. There may be a rise in price expectations as spring moves on correcting the price decrease trend we have seen as word spreads of the growing economic stability in the region.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed large decrease in median price was larger than expected and the observed large increase in sales count was larger than expected. The current Days to Sell of 93 days is less than the 10-year average for October which is 105 days. The level of inventory available for sale currently sits at 64 weeks, one and half weeks less than in October 2017.

 WC_Oct18

 

Regional Analysis - Canterbury

“The Canterbury market continues to perform well, remaining strong and steady with a new record median house price of $465,000, which is a 3.3% increase compared to October 2017. It was positive to see the increase of new listings and total inventory as there has been a good number of attendees at open homes and sales volumes are strong, up 28.7% year-on-year.

First home buyer interest has gone up again, but finance is getting harder to secure. However, we do see a higher number of pre-approvals compared to 12 months ago. A few vendors are selling investment properties as their fixed term comes up and a growing number of investors now see rental properties as more hassle and expense than they are worth. The market will most likely continue to track in the same steady and stable pace for a while longer.”

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was in contrast to the expected stability and the observed large increase in sales count was larger than expected. The current Days to Sell of 37 days is higher than the 10-year average for October which is 32 days. The level of inventory available for sale currently sits at 21 weeks, the same as in October 2017.

 CANT_Oct18

 

Regional Analysis - Otago

“Continued demand across Dunedin helped the City achieve a new record median house price in October of $430,500, a 15.1% increase compared to October 2017. First home buyers are looking but have a limited number of properties to look at. Until we see an increase in listing stock it is unlikely, we will see any significant rise in volume.”  Dunedin City.

“The Queenstown Lakes region saw a 22.3% increase in new listings, which is very positive for the month. Previously, vendors have been holding back from putting their property on the market due to lack of alternatives to view however, this might change now with the increase of new listings. Purchasers are taking longer before they make a decision which makes the negotiation period longer. Hopefully, November will continue to see new properties being listed on the market. Drilling down in detail across the region, the Queenstown-Wakatipu ward saw a record median price of $1,345,000.”  Queenstown.

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed large increase in median price was quite a bit greater than expected and the observed gigantic increase in sales count was a little greater than expected. The current Days to Sell of 30 days is less than the 10-year average for October which is 34 days. The level of inventory available for sale currently sits at 9 weeks, two weeks less than in October 2017. This is the equal lowest (in terms of weeks) level of inventory of all the regions.

 OTAGO_Oct18

 

Regional Analysis - Southland

“The Southland market continues on its steady and stable course it has been on for the whole year. The median house price remained at a similar level as last month and saw an 8.5% year-on-year increase resulting in an October median house price at $255,000. New listing numbers rose marginally year-on-year, which was positive as the volume of sold properties increased by 32.9% compared to October 2017.

Additionally, Southland had the lowest median days to sell of just 24 – down from 28 in October last year. The steady market will most likely continue as the level of interest remain high and there are many commercial and residential developments in the pipeline to look forward too, which is good for the region’s growth.

The seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed decrease in median price contrasted with the expected increase and the observed increase in sales count was smaller than expected. The current Days to Sell of 24 days is much less than the 10-year average for October which is 32 days. This is the region with the lowest median days to sell. The level of inventory available for sale currently sits at 11 weeks, seven weeks less than in October 2017.

 STHLD_Oct18