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Regional Commentary and Property Market Statistics - October 2019

Market Statistics

Property Brokers 19 Nov 2019

PB030482 - Regional Commentary & Property market Statistics 

The number of properties sold across the country fell by -4.0% when compared to the same time last year; but with a number of people aiming to sell their home before the
foreign buyer ban came into effect at the end of October 2018, it’s not surprising that the number of properties sold fell when compared to last year. 

For New Zealand excluding Auckland, the number of properties sold decreased by -5.5% when compared to the
same time last year (to 4,776 down from 5,055).

Bindi Norwell, Chief Executive at REINZ says: “October was a strong month price wise, with record median prices
recorded in six regions and a record equal in Canterbury. Additionally, the country saw a new national record
median price of $607,500 – the first time the median house price for New Zealand has exceeded the $600,000
mark. This is the highest number of regional record prices we’ve seen for the country in 23 months.

“The Gisborne region also had a very strong month with a 37.1% increase in median price year-on-year to $425,000
– the strongest price rise across the country,” continues Norwell.

“October saw the Auckland region experience the highest median house price in 19 months at $868,000. This was a
0.8% lift on the median price seen last October and a 2.4% lift on the median price from September this year. Looking across the Auckland region, Auckland City saw the highest median price in 28 months with a 4.6% annual increase to $1,001,000 - in part due to a 43.0% increase in median price in the Waitemata & Gulf area. This was the result of a 6.8% increase in $1 million - $1,999,999 properties sold compared to the same time last year.

“Additionally, Franklin District saw median house prices increase 8.8% to $695,000 the highest median price in 4
months,” she continues.

Regions with the greatest decrease in annual sales
volumes during October were:
• Marlborough: -28.7% (from 115 to 82 – 33 fewer houses)
• Gisborne: -22.8% (from 57 to 44 – 13 fewer houses) - the lowest for the month of October in 5 years
• Taranaki: -22.8% (from 189 to 146 – 43 fewer houses) – the lowest for the month of October in 8 years.

Regions with the greatest increase in annual sales volumes
during October were:
• Bay of Plenty: +20.2% (from 446 to 536 – 90 more houses) – the highest for the month of October in 4
years
• Tasman: +19.4% (from 62 to 74 – 12 more houses) – the highest for the month of October in 3 years
• Nelson: +16.7% (from 84 to 98 – 14 more houses) – the highest for the month of October in 4 years.

 

Regional Analysis - Auckland

“The Auckland region saw the highest median price in 19 months with an increase of 0.8%, compared to the same time last year, reaching $868,000. Interestingly, with new listings down -19.8% in the region, sales were only slightly down by -0.1%, 3 less sales than the same time last year. Sales in the outer Auckland districts were the major contributors to the sales count, particularly Papakura District (41.9%), Franklin District (25.6%) and Rodney District (13.8%). Anecdotally, we are seeing positive activity from first home buyers, and good interest from investors. Some open homes have had 50+ groups through in their first weekend, especially with listings in the sub $1,500,000 price range. There are a good number of new developments coming to the market in the Eastern and South Auckland suburbs. Finance approvals are still quite challenging even with low interest rates and good deposits. Deals that are conditional on finance are needing to be renegotiated in several instances. Over the next few months we should see more positive activity with more properties coming to the market.” (REINZ)

The current Days to Sell of 36 days is above the 10-year average for October which is 34 days. The level of inventory available for sale currently sits at 20 weeks, five weeks less than in October 2018.

REINZ_Nov_Auckland 

Regional Analysis - Northland

“In October, Northland saw a record median price of $525,000 up 9.4% from $480,000 in October 2018. The
continued lack of stock in the region has likely caused the increase in median price as well as the decrease in sales, which were down -9.4% year-on-year. Additionally, new listings were down -15.2% compared to the same time last year, with only 462 new to the market. Days to sell increased by 17 days from 45 in October 2018 to 62 in October 2019. Demand for mid-range priced property remains strong with an increase in first home buyers in the market. There has also been renewed interest from investors looking for multiunit properties. In Kerikeri, there are few properties under $500,000 and if one does come onto the market it usually sells quickly. Local buyers are keeping a close eye on what is happening in the Auckland market, which is boosting confidence for buyers in the Northland market. Over the latter part of spring and start of summer we should hopefully see more listings come onto the market and demand for midrange properties will remain strong.” (REINZ)

The current Days to Sell of 62 days is larger the 10-year average for October which is 53 days. The level of inventory available for sale currently sits at 36 weeks, 2 weeks less than in October 2018.

REINZ_Nov_Northland

Regional Analysis - Waikato

“The Waikato region saw median price increases in all districts with record median prices in Taupo ($520,000), Waitomo District ($290,000) and for the region overall ($570,000) up 9.6% year-on-year. Notably, the South Waikato District experienced a 42.5% increase in the median price but a 65.6% decrease in number of sales from 32 in October 2018 to just 11 in October 2019. However, sales in the Matamata-Piako District increased 42.2% from 45 in October 2018 to 64 in October 2019. Overall, sales in the region were down 2.2% compared to October 2018. The REINZ House Price Index reached a new high from peak and an increase of 7.7% annually to 3,079. Anecdotally, we are seeing the same number of first home buyers in the market compared to last month, likely due to great lending options and low interest rates. In Taupo, there were 36 auctions at once, due to a local marketing campaign, so there were more attendees at inspections and more cash buyers in the market. We should continue to see a steady market over the next couple of months, with no signs of a slowdown.” (REINZ)

The current Days to Sell of 36 days is less than the 10-year average for October which is 40 days. The level of inventory available for sale currently sits at 16 weeks, one week less than in October 2018

 

Waikato_September_REINZ-Stats

Regional Analysis - Bay of Plenty

“The Bay of Plenty region experienced a record median price reaching $620,000 up 7.8% year-on-year. The increase is likely due to the increase in the number of million dollar plus properties from 8% in October 2018 to 11% in October 2019. Tauranga City experienced a record median price of $687,400 and Rotorua District also saw a record price increase reaching $490,000 compared to the same time last year. The number of houses sold increased 20.2% from 446 in October 2018 to 536 in October 2019, the highest increase throughout the country and one of only three regions which experienced a positive increase. Days to sell also decreased from 42 days in October 2018 to 38 days in October 2019, likely due to the lack of listings available, meaning that new listings don’t last long on the market. There appears to be a reluctance to list property as there is limited choices to buy. Vendor expectations have increased due to the increase in prices and lack of properties available. We should continue to see strong demand and interest from purchasers as new properties enter the market.” (REINZ)

 

The current Days to Sell of 38 days is less than the 10-year average for October which is 46 days. The level of inventory available for sale currently sits at 15 weeks, one week less than in October 2018.

REINZ_Nov_Bay of plenty

 

Regional Analysis - Gisborne

“The Gisborne market continues to be active with an annual median price increase of 37.1% reaching $425,000, the highest increase throughout the country. On the flipside, Gisborne recorded a 22.8% decrease in sales, the highest decrease in the North Island alongside Taranaki. New listings decreased 26.4% with only 64 new to the market with total inventory sitting at 92, demand for properties in the region continues to reach an all-time high. First home buyers are now having to look at the $250,000 - $499,999 price bracket as there are very few listings left in the sub $250,000 price bracket. The number of properties sold in the $250,000 - $499,999 increased from 52.6% in October 2018 to 70.5% in October 2019. We are also starting to see bank lending criteria softening. The remainder of spring will probably see demand continue to be strong, and hopefully with more new stock coming to the market over summer, purchasers should have more choice.” (REINZ)

 

The current Days to Sell of 37 days is less than the 10-year average for October which is 40 days. The level of inventory available for sale currently sits at 7 weeks, seven weeks less than in October 2018.

REINZ_Nov_Gisborne

Regional Analysis - Hawke's Bay

“A 16.3% increase in median house prices saw the Hawke’s Bay region achieve a record median price of $535,000 compared to the same time last year. Additionally, three districts also achieved record median prices - Hastings District ($550,000), Napier City ($555,000) and Wairoa District ($271,000) which hasn’t seen a record median price since February 2018. However, with new listings down 12.5% annually in the region, the number of properties sold during October fell by 4.1%. Inventory levels are down 18.4% year-on-year with only 7 weeks’ total inventory available. First home buyer and investor activity are up slightly compared to the same time last year. Overall, vendor expectations have increased due to the increase in pricing. There has been more activity with enquiries and attendees at open homes which should continue over the summer months.” (REINZ)

 

The current Days to Sell of 30 days is less than the 10-year average for October which is 37 days. The level of inventory available for sale currently sits at 7 weeks, three weeks less than in October 2018.

REINZ_Nov_HawkesBay

Regional Analysis - Taranaki

“In October, the Taranaki region saw a decrease in median price, the only region to experience a decrease, down slightly 0.5% to $390,000. The decrease is likely due to the minor decrease in sales in the $750,000+ price bracket decreasing from 6.3% in October 2018 to 5.5% in October 2019. New listings fell by 32.1% and sales volumes decreased by 22.8% year-on-year. Listings in the region are in high-demand and there is plenty of buyer activity which is resulting in multi offers. There is an increase in the number of attendees at open homes and we are seeing more investors and cash buyers in the market compared to last month. Stock will remain tight
over the next couple of months unless more listings come onto the market.” (REINZ)

 

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 15 weeks, two weeks less than in October 2018.

REINZ_Nov_Taranaki

Regional Analysis - Manawatu/Whanganui

“The Manawatu/Wanganui market saw the continued pattern of price growth with a record median price of $407,500 in October 2019, up 20.9% on last year. The Manawatu District also experienced a record median high of $450,000, as did Palmerston North City, reaching a record median high of $470,000. The number of sales in the $500,000+ price bracket increased from 17.8% in October 2018 to 26.5% in October 2019 which is likely to be causing the increase in pricing in the region. New listings only decreased by 2.0%, which was the lowest decrease in new listings throughout the country, with every other region experiencing a decrease in new listings. The REINZ House Price Index in the region also reached a new high from peak, and an increase of 18.7% year-on-year to 3,330, reflecting the continued strength of the region. Anecdotally, we are seeing that most purchasers prefer to complete their due diligence as a condition in the purchaser’s contract.” (REINZ)

 

The current Days to Sell of 24 days is much less than the 10-year average for October which is 38 days. The level of inventory available for sale currently sits at 8 weeks, six weeks less than in October 2018.

REINZ_Nov_Manawatu

Regional Analysis - Wellington

“In October, the Wellington region saw an increase in median price from $598,000 in October 2018 to $640,000 in October 2019, likely due to the increase in $2 million plus properties. Wellington City experienced a record median price of $815,000 making it more expensive than parts of Auckland, and the South Wairarapa District saw a record median price of $592,000. New listings decreased by 8.4% compared to the same time last year, and with only 6 week’s inventory available, there is a real shortage of listings in the region. Although there is a lack of stock, it is still moving and exceeding price expectations. Although sales decreased 14.4% year-on-year, sales increased 20.7% compared to September 2019. The REINZ House Price Index also reached a new high from peak and an increase of 9.3% annually to 2,866. There is a real mix of first home buyers, and owner occupiers, with a few investors still in the market. As we head into summer, we should see more listings come onto the market, an increase in investor enquiries and more developments or off the plan properties becoming available.”(REINZ)

 

The current Days to Sell of 29 days is less than the 10-year average for October of 31 days. The level of inventory available for sale currently sits at six weeks, three weeks less than in October 2018. This is the lowest level of inventory of all the regions.

REINZ_Nov_Wellington

Regional Analysis - Nelson/Marlborough

“The Nelson/Marlborough/Tasman regions all experienced an increase in median prices, with Marlborough reaching $445,500, up 16.5% year-on-year. Sales in the Marlborough region were down annually by 28.7% and total inventory is now at 269 (down 11.8% year-on-year). Additionally, new listings in the Marlborough region were recorded as the highest decrease in the country, with 100 new listings to the market in October 2019 (down 35.9% year-on-year). The lack of listings in the area has resulted in multi-offers and has pushed auctions forward, which is likely to be pushing up the price in the region. On the flipside, the Nelson/Tasman regions have both experienced positive sales volumes increases with Tasman recording a 19.4% increase and Nelson recording a 16.7% increase compared to the same time last year. Anecdotally, we have seen many vendors challenging the Nelson City Council RV’s from September 2019 to be revalued. RV’s are actively used by buyers in the Nelson region as a price guide, and as such, vendors are looking for more value in their properties. New homes in some developments are slowing due to availability which is putting pressure on the existing housing supply that is available. We should continue to see listings remain tight and supply and demand will remain positive for vendors for now.” (REINZ)

 

The current Days to Sell of 29 days less than the 10-year average for October which is 34 days. The level of inventory available for sale currently sits at 13 weeks, two and a half weeks less than in October 2018

REINZ_Nov_Nelson-Marlborough

Regional Analysis - West Coast

“In October, the West Coast region saw a 13.7% increase in the median price from $175,000 in October 2018 to $199,000 in October 2019. Interestingly, there were no sales recorded over $500,000, but a slight increase in the number of sales in the $250,000 - $499,999 price bracket from 27.08% in October 2018 to 28.21% in October 2019. The region had a 18.8% decrease in volume of sales yearon-year, but the number of days to sell decreased from 73 days in October 2018 to 42 days in October 2019, the largest decrease in the country and the best days to sell for the West Coast in 54 months. The market is reasonably good with strong out of town buyer interest continuing. We have seen slightly more activity from first home buyers whereas 12 months ago there wasn’t much activity in the first home buyer market. We are also starting to see more investor activity in the market this month as our rental market is running at capacity with strong mining activity in the region. Over the next few months we should continue to see more out of town interest due to the attraction of the lower house prices.” (REINZ)

 

The current Days to Sell of 42 days is much less than the 10-year average for October which is 102 days. The level of inventory available for sale currently sits at 40 weeks, 24 weeks less than in October 2018.

REINZ_Nov_West-Coast

Regional Analysis - Canterbury

“The Canterbury market has continued to maintain a steady median price of $465,000 which remains the same as this time last year and is an equal record. Christchurch City saw a record high of $479,000 (up 0.8% year-on-year) and the Waimakariri District also experience a record high of $475,000 (up 1.1% year-on-year and 12 months since it’s prior record). Anecdotally, we are seeing very strong numbers at open homes and strong levels of enquiry, especially in the sub $500,000 price bracket. There are slightly more first home buyers in the market compared to last month which is the busier part of the market. Multi offers and bidding at auctions were more frequent this month. Strong buyer numbers and low stock levels will continue to fuel an active market, especially as we head into the summer months.” (REINZ)

 

The current Days to Sell of 34 days is higher than the 10-year average for October which is 32 days. The level of inventory available for sale currently sits at 18 weeks, three weeks less than in October 2018.

REINZ_Nov_Canterbury

Regional Analysis - Otago

“The Queenstown Lakes District saw a 6.9% increase in the median sale price and a 2.3% increase in sales volumes when compared to the same time last year. Prices in the Wanaka Ward are at their highest in 13 months (+38.7% to $1,175,000). We are seeing an increase in first home buyers, some who are using their KiwiSaver to help purchase their home. There are more investors in the market this month but very few are achieving a purchase due to lending challenges. Looking across the wider Otago region saw the overall median price reach a record price of $550,000 as well as the Clutha District achieving a record median price of $326,000.” (REINZ)

 

“Dunedin City achieved a record median price of $515,000 in October driven by price growth across
all areas of the city. Sales fell by 20.1% annually but the number of days to sell didn’t change. New listings have
dropped, and current stock is still low. Vendors are achieving good prices for their homes, but due to the
lack of homes for sale and rentals on the market, it is challenging to find a new home. The market will continue
to be short on listings during the holiday period, but we expect it to pick up in the New Year.” (REINZ)

 

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 seven weeks, two weeks less than in October 2018.

REINZ_Nov_Otago

Regional Analysis - Southland

“The Southland market continues its strong growth as it achieved a 23.5% increase in the median price from $255,000 in October 2018 to $315,0000 in October 2019. A new record median price has also been achieved in Invercargill City reaching $325,000, up 27.5% compared to the same time last year. The REINZ House Price Index in the region also reached a new high from peak, an annual increase of 20.9% (the highest increase in the country) to 3,267, reflecting the continued growth of the region. However, sales decreased 16.8% and new listings decreased 1.1% year-on-year which has likely added to the increase in house prices in the region. There is a strong demand for houses and prices continue to increase, although buyers are at the lower to middle range of the market - there were no sales recorded over $749,999 this month. We are seeing more first home buyers and investors in the market compared to last month and open homes are generally busier, which should continue over the next few months.” (REINZ)

 

The current Days to Sell of 20 days is much less than the 10-year average for October which is 31 days. The level of inventory available for sale currently sits at 10 weeks, one week less than in October 2018.

REINZ_Nov_Southland