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Regional Commentary and Property Market Statistics - September 2019

Market Statistics

Property Brokers 15 Oct 2019

PB030482 - Regional Commentary & Property market Statistics FINALThe number of residential properties sold across New Zealand in September increased by 3.3% from the same time last year to 5,896 (up from 5,708), only the second annual increase in sales volumes seen this year and the highest number of properties seen sold for the month of September in 3 years, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.

For New Zealand excluding Auckland, the number of properties sold increased by 2.0% when compared to the same time last year (to 4,073 up from 3,993).

Bindi Norwell, Chief Executive at REINZ says: “After a quiet few months over the winter, the number of properties sold across the country increased by 3.3% in September, the highest number of properties we’ve seen sold for the month of September in 3 years. This suggests that we’re starting to see the usual spring uplift and also that more confidence is starting to creep back into the market.”

“Looking around the country, the Bay of Plenty, Hawke’s Bay, Tasman, Canterbury, West Coast and Otago all saw the highest sales volumes for the month of September in three years. However, on the flip side, Northland, Taranaki, Nelson and Southland all had the lowest sales volumes for the month of September in five years and Gisborne had the lowest sales volumes for the month of September in four years – so results have been quite varied depending on where you look around the country,” continues Norwell.

The Auckland region had a strong September with a 6.3% increase in the number of properties sold when compared to the same time last year. Papakura District saw the largest uplift with 58.0% more properties sold, followed by Franklin District (+18.8%), Rodney District (+16.0%), Manukau City (+15.1%) and Auckland City (+10.5%),” continues Norwell.

Regions with the greatest decrease in annual sales volumes during September were:
• Southland: -27.0% (from 178 to 130 – 48 fewer houses) - the lowest non-January figure since December 2014
• Gisborne: -20.4% (from 49 to 39 – 10 fewer houses) – the lowest September in 7 years
• Marlborough: -13.9% (from 72 to 62 – 10 fewer houses) - the lowest since September 2017

Regions with the greatest increase in annual sales volumes during September were:
• Tasman: +45.8% (from 48 to 70 – 22 more houses) – the highest for the month of September in 3 years
• Otago: +12.0% (from 324 to 363 – 39 more houses) – the highest for the month of September in 3 years
• West Coast: +11.4% (from 35 to 39 – 4 more houses) – the highest for the month of September in 3 years

 

Regional Analysis - Auckland

“In September, the Auckland region experienced a 0.2% increase in the median price, returning to the mid 800’s to $848,000 when compared to this time last year. Waitakere City increased 6.3% from $715,000 in September 2018 to $760,000 in September 2019. New property listings decreased by -22.5% annually, the largest decrease in new listings in the North Island. However, sales increased by 0.7% compared to last month, and by 6.3% year-on year. The REINZ House Price Index had a positive 1-month movement reaching 2,865 which supports the spring lift that has driven the overall region forward. Anecdotally, we are seeing large numbers at open homes especially in Central Auckland and one property in Onehunga had 70 groups through in the first weekend. We are seeing a lot of pre-auction offers which means that vendors are meeting the market, and there are positive value adjustments on both sides. There is great appetite for higher end apartments $2,000,000+ as people are looking to downsize in their latter years. Investors are active due to yields being down, but not much change from last month.” (REINZ)

The current Days to Sell of 39 days is above the 10-year average for September which is 34 days. The level of inventory available for sale currently sits at 21 weeks, two weeks less than in September 2018.

Auckland_September_REINZ-Stats 

Regional Analysis - Northland

“The Northland region saw a decrease of -5.5% to $477,000 in median price compared to the same time last year, likely the result of a drop in the number of million dollar plus properties sold. The number of sales decreased marginally by -0.6% annually, while new listings in September dropped -9.1% and days to sell increased by 16 from 49 days in September 2018 to 65 days in September 2019. Listings have generally been low for the start of spring, however we have seen higher numbers at open homes, and a steady increase in appraisals in the last two weeks of September. There are a number of passive buyers watching as new listings arise. Buyers are more prepared with finance or are cashed up buyers from selling higher value properties in the major cities. Investors are increasingly active and are competing with an increase of first home buyers. Historically, as we look forward to the summer period we expect it to be busier sometimes due to curious holiday makers, but generally we believe sales will increase in the coming months.” (REINZ)

The current Days to Sell of 65 days is larger the 10-year average for September which is 56 days. The level of inventory available for sale currently sits at 35 weeks, 2 weeks more than in September 2018.

Northland_September_REINZ-Stats

Regional Analysis - Waikato

“The Waikato region saw an equal high in the median price, reaching $550,000 up from $521,000 in September 2018 due to an uplift in the $500,000 - $749,999 price bracket. The median price in Hamilton City had a record median price of $597,000, an 8.7% increase compared to the same time last year. New listings decreased by -16.1% compared to the same time last year, but new listings in the Coromandel region increased by 28% year-on-year, one of only three regions to experience an increase in listings. There has been slightly less sales year-on-year (-2.6%) however, there is plenty of enquiry and competition amongst first home buyers and investors alike creating multi-offers for properties in the lower price brackets. In Hamilton, buildings on infill sites are hugely popular with developers looking to sub-divide. In Taupo we are seeing many cash buyers in the market looking to buy in the middle brackets of $450,000 - $1,000,000. We should see the market pick up nicely as we move into the summer season.” (REINZ)

The current Days to Sell of 36 days is less than the 10-year average for September which is 43 days. The level of inventory available for sale currently sits at 17 weeks, one week less than in September 2018.

 

Waikato_September_REINZ-Stats

Regional Analysis - Bay of Plenty

“The Bay of Plenty region saw an increase in the median price of 10% to $605,000, the first time it has reached over $600,000 since December 2018. Additionally, solid prices were recorded in Tauranga City with median price increases across all three wards. New listings are still slow coming to the market with a yearly decrease of -5.7% in the region. On the flipside, sales have increased by 9.4% from 395 in September 2018 to 432 in September 2019. In Rotorua sales increased 28% year-on-year from 75 in September 2018 to 96 in September 2019. Anecdotally, we are seeing there is renewed interest from the Baby Boomers. This may put further pressure on first home buyers as they start to compete for property in the same price brackets. In Rotorua, we are seeing a lot of interest in older properties that could be viewed as doer-uppers. With no obvious lift in listings the coming months may remain tight on stock, however the summer months should bring signs of improvements.” (REINZ)

The current Days to Sell of 41 days is less than the 10-year average for September which is 48 days. The level of inventory available for sale currently sits at 14 weeks, the same as in September 2018.

Bay-Of-Plenty_September_REINZ-Stats

 

Regional Analysis - Gisborne

“In September, the Gisborne region saw a 12.1% increase in the median price to $384,000 compared to the same time last year. However, this was a decrease from $420,000 in August 2019. Sales also decreased by -20.4%, the second highest decrease in the country, from 49 in September 2018 to 39 in September 2019. Gisborne has recorded the lowest non-January sales count since July 2015. Additionally, with only 6 weeks’ inventory available and the lowest number of properties available in the region throughout New Zealand, demand for properties in the region is at an all-time high. In addition to the low number of properties available on the market, there is a gap in supply for those who want to downsize. Banks are being supportive to first home buyers and attendees at open homes is up significantly. In the past couple of weeks, we have seen an increase in the number of investors looking for rental properties across the market including in the higher end brackets.” (REINZ)

The current Days to Sell of 29 days is less than the 10-year average for September which is 35 days. The level of inventory available for sale currently sits at 6 weeks, four weeks less than in September 2018. This is the lowest level of inventory of all the regions.

Gisborne_September_REINZ-Stats

Regional Analysis - Hawke's Bay

“The Hawke’s Bay region experienced a 13.4% increase in the median price from $441,000 in September 2018 to $500,000 in September 2019. The Central Hawke’s Bay District increased by 34.2% to $392,500 compared to the same time last year. Additionally, the number of sales in the region within the $500,000 - $749,999 price bracket have increased from 26.8% in September 2018 to 35.7% in September 2019, which has likely pushed up prices. Vendor expectations have increased due to the increase in pricing. Hastings has been constrained by a lack of available stock under $600,000 with Napier not far behind. Interestingly, Flaxmere (one of Hawke’s Bay’s more affordable suburbs) has had several sales over $400,000 suggesting that the market will continue to track upwards in the coming months.” (REINZ)

The current Days to Sell of 28 days is much less than the 10-year average for September which is 38 days. The level of inventory available for sale currently sits at 9 weeks, the same as in September 2018.

Hawkes-Bay_September_REINZ-Stats

Regional Analysis - Taranaki

“The Taranaki region saw continued price growth with a record median price of $400,000, up 15.9% on last year and the first time the region has hit the $400,000 mark. Additionally, the Stratford District also saw a record median price reaching $340,000. We have seen vendor expectations increase due to the steady increase in prices. Despite the increase in the median price, the number of properties sold in the region fell slightly by -1.9% year-on-year. However, there were the same number of sales (157) compared to last month. New listings decreased by -10.3% compared to the same time last year, with only 182 new listings hitting the market in September. Anecdotally, we are seeing similar levels of first home buyers and slightly more investors in the market this month which has increased numbers at open homes.” (REINZ)

The current Days to Sell of 33 days is much less than the 10-year average for September which is 44 days. The level of inventory available for sale currently sits at 18 weeks, four weeks more than in September 2018.

Taranaki_September_REINZ-Stats

Regional Analysis - Manawatu/Whanganui

“In September, the Manawatu-Wanganui region saw a record median price, and the highest increase in the country, up 24.1% to $397,000 when compared to the same time last year. Additionally, there were three districts that saw record median prices in the region – Horowhenua District ($380,000), Whanganui District ($330,000) and Palmerston North City ($466,000) showing the continued strength of the region overall. The number of sales in the sub $500,000 price bracket has decreased from 82.34% in September 2018 to 75.55% in September 2019 which is likely to be pushing up the median price. Sales also increased by 6.3% from 300 in September 2018 to 319 in September 2019. The region had the lowest number of days to sell at 25 days in September 2019, down 5 days from 30 days in September 2018. The REINZ House Price Index in the Manawatu-Wanganui region reached a new high from peak to 3,226, and a 15.9% positive 12-month movement, the second highest in the country. New listings have increased from last month but are still down -3.5% compared to the same time last year. Anecdotally, we have seen more investors in the market compared to last month looking at investing in property with lower interest returns available from the banks.” (REINZ)

The current Days to Sell of 25 days is much less than the 10-year average for September which is 41 days. The level of inventory available for sale currently sits at 11 weeks, the same as in September 2018.

Manawatu-Wanganui_September_REINZ-Stats

Regional Analysis - Wellington

“The Wellington region’s median price was up 6.3% on the same time last year to $640,000, with Wellington City reaching a record median high of $825,000. Porirua City also reached a record median price of $700,500. Sales in the Wellington region were up 2.8% year-on-year with sales in Upper Hutt City increasing by 57.5% from 40 in September 2018 to 63 in September 2019. However, with only 8 weeks’ worth of inventory available to the market and a -17.6% decrease in new listings in the region, the demand for properties close to schools and public transport continues. There is still a lack of rentals available, but we are starting to see investors show renewed interest in the market which may assist with the shortage of rental properties available. First home buyers currently make up around half of the market. Going forward we expect the usual uplift as we head into summer.” (REINZ)

 

The current Days to Sell of 30 days is less than the 10-year average for September of 33 days. The level of inventory available for sale currently sits at eight weeks, the same as in September 2018.

Wellington_September_REINZ-Stats

Regional Analysis - Nelson/Marlborough

“The median price in the Tasman region increased 3.3% to $630,000 and Marlborough experienced a 10.3% increase in the median price to $461,000 year-on-year. However, the Nelson region experienced an annual decrease of -5.4% in the median price to $560,000, one of only three regions throughout the country to see a negative year-on-year movement in price. This is likely due to the mix of properties sold during September rather than underlying fundamentals changing, as houses sold in the $250,000 - $499,999 bracket increased by 10.8% at the expense of those in the $500,000 - $749,999 . Sales in the Tasman region increased by a significant 45.8%, the highest in the country, from 48 in September 2018 to 70 in September 2019. Both the Nelson and Marlborough regions saw decreases in the number of sales, with Marlborough having the lowest sales count (62) since September 2017 and Nelson having the lowest non-January sales count (63) since September 2014. However, Nelson had the highest increase in the total number of properties available on the market. Overall, the market remains driven by the same factors that were present throughout winter and we are still seeing strong interest from people living in other regions, due to the accessible and affordable lifestyle across the region.” (REINZ)

 

The current Days to Sell of 34 days less than the 10-year average for September which is 36 days. The level of inventory available for sale currently sits at 14 weeks, one week more than in September 2018.

Nelson-Marlborough-Tasman_September_REINZ-Stats

Regional Analysis - West Coast

“The West Coast region experienced the country’s highest decrease in median price of -7.5% from $200,000 in September 2018 to $185,000 in September 2019, which was largely the result of a large uplift in the percentage of properties sold for less than $250,000. The percentage of properties sold under $250,000 increased from 54.3% in September 2018 to 71.8% in September 2019. Sales increased by 11.4% compared to the same time last year, however they dropped by -13.3% from last month. The region has also experienced record low inventory levels, currently at 310. Additionally, the number of days to sell has increased significantly to 102 days year-on-year, the first time it has reached over 100 days since February 2018. Over the next few months the market will be slow but should steadily rise if new listings start to increase.” (REINZ)

 

The current Days to Sell of 102 days is more than the 10-year average for September which is 99 days. The level of inventory available for sale currently sits at 37 weeks, 23 weeks less than in September 2018.

West-Coast_September_REINZ-Stats

Regional Analysis - Canterbury

“The start of spring saw prices in Canterbury remain stable in the mid $400’s, with a median price of $450,000, up 0.6% annually. In the Kaikoura District the median price increased by 44.2% reaching $375,000 and sales increased 40% year-on-year. Sales in the Canterbury region increased from 801 in September 2018 to 820 in September 2019. Anecdotally, we are seeing more first home buyers in the market compared to last month likely due to the low interest rates. The new government scheme also has first home buyers interested. There has been an increase in the number of attendees at open homes compared to last month likely due to the warmer weather. Overall, the market is steady, however a shortage of listings continues to be an issue and if levels don’t increase over the coming months it is likely that there will be more opportunity for multi offers and increased bidders at auctions.” (REINZ)

 

The current Days to Sell of 40 days is higher than the 10-year average for September which is 34 days. The level of inventory available for sale currently sits at 18 weeks, two weeks less than in September 2018.

Canterbury_September_REINZ-Stats

Regional Analysis - Otago

“Although the Queenstown-Lakes District saw a slight decrease (-3.9%) in the median price to $995,000, the
district experienced a 40.4% increase in sales compared to the same time last year. New listings also increased
annually by 6.5%, one of only three regions alongside Nelson and the Coromandel to see an increase in the
number of new listings. Finance approvals have started to increase in difficulty. Buyers are aware of the difficulty and are wanting to gain finance approvals prior to making an offer. The Queenstown-Lakes market historically lifts at this time of the year, so we should continue to see an increase even if it is slow and steady.” (REINZ)

 

“Median prices in Dunedin City continue to increase annually and in September there was a record median,
increasing by 21.3%, reaching $485,000. Traditionally, we see more activity in spring and that has been the case this year with plenty of new property coming to the market in the past month. Dunedin City is continuing to perform very strongly relative to the other main centers.” (REINZ)

 

The current Days to Sell of 27 days is less than the 10-year average for September which is 36 days. The level of inventory available for sale currently sits at 10 weeks, the same as in September 2018.

Otago_September_REINZ-Stats

Regional Analysis - Southland

“The Southland market continues to be resilient with a new record high median price of $315,000 up by 22.1%, the second highest increase throughout the country. Additionally, the Southland District had a record median price increase of 51% to $391,000. The number of properties sold in the $250,000 - $499,999 price bracket increased by 16.7% compared to the same time last year, which is likely to be pushing prices up. The REINZ House Price Index in the region also reached a new high from peak with an increase of 18.2% year-on-year, the highest increase throughout the country. On the flipside, the Southland region experienced the biggest decrease in sales (-27%) and the biggest drop in the number of new listings (-34.7%). With low stock and keen buyers there is still lots of competition, and vendor expectations have increased. There seems to be the same number of investors in the market compared to last month, but less than last year due to the new healthy homes standards impacting investors.” (REINZ)

 

The current Days to Sell of 27 days is less than the 10-year average for September which is 34 days. The level of inventory available for sale currently sits at 13 weeks, two weeks more than in September 2018.

Southland_September_REINZ-Stats