<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 - September 2020

Market Statistics

Property Brokers 19 Oct 2020

113939839_lThe number of residential properties sold in September across New Zealand increased by 37.1% from the same time last year (from 6,112 to 8,377) – the highest number of properties sold in a month in New Zealand for 42 months (March 2017) and the highest number of properties sold in a September month for 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 29.9% when compared to the same time last year (from 4,245 to 5,516) – also the highest for the month of September in 14 years.

Bindi Norwell, Chief Executive at REINZ says: “Normally one month out from an election, people start to take a wait and see approach, and sales volumes begin easing off. However, 2020 appears to continue in its trend of being an anomaly, with the number of properties sold the highest in 42 months, since March 2017, when the country was last experiencing such growth.

“Highlighting just how much sales volumes around the country continue to defy expectations, 13 regions had annual sales volumes increases in excess of 20% and 10 regions had increases in excess of 30% - the highest number of regions with this level of sales volume increase since April 2015,” continues Norwell.

Regions with the largest increase in annual sales volumes during September were:
• Nelson: +66.2% (from 65 to 108 – 43 more houses) – the highest for the month of September in 17 years
• West Coast: +57.9% (from 38 to 60 – 22 more houses) – the highest sales volumes for the region since May 2018
• Tasman: +42.5% (from 73 to 104 – 31 more houses) – the highest for a September month since records began
• Canterbury: +39.0% (from 844 to 1,173 – 329 more houses) – the highest sales volumes for the region in 54 months (March 2016)
• Waikato: +37.8 (from 658 to 907 – 249 more houses) – the highest sales volumes for the region in 52 months
• Manawatu/Wanganui: +37.3% (from 322 to 442 – 120 more houses) – the highest for a September month in 14 years 
• Marlborough: +36.5% (from 63 to 86 – 23 more houses) – the highest for a September month in 14 years
• Bay of Plenty: +31.2% (from 442 to 580 – 138 more houses) – the highest sales volumes for the region in 42 months.

Regional Analysis - Auckland

“Median prices in Auckland reached a record high of $955,000 in September, up 12.6% year-on-year. Additionally, Auckland City ($1,250,000) and Manukau City ($970,000) reached new record medians. The REINZ House Price Index for Auckland also reached a new record high of 3,194, up 11.4% on the same time last year. Sales volumes increased 53.2% year-on-year with 2,861 properties sold. New listings were up 34.4% on the same time last year and up 27.3% on last month, which is great news for the region as it will hopefully start to help correct the shortage of stock that we have been seeing for some time now. As we move further into Spring and the warmer weather, it is likely that this momentum will continue through until at least the end of the year. Auctions have remained a popular method of sale, with good levels of competition and approximately 80% clearance rates. First time buyers are extremely motivated to buy, particularly with the lack of LVRs and low interest rates; however, we are still hearing reports that it is not easy to secure finance from the banks and this is acting as a barrier for some potential purchasers. Investors appear to be expanding their portfolios as they are still actively purchasing in the market, but not selling.” (REINZ)

The current Days to Sell of 36 days is more than the 10-year average for September which is 34 days. There were 13 weeks of inventory in September 2020 which is 8 weeks less than the same time last year.

Auckland_Sep2020

Regional Analysis - Northland

“Median house prices for Northland increased 16.1% year-onyear to $555,000 and asking prices from vendors are holding firm. New listings were down -10.6% year-on-year. Sales volumes were up by 25.0%. Open homes have maintained high levels of attendance, with a number of out of area buyers coming North on the weekends and looking for permanent homes. Interest remains high from all levels of buyers including first home buyers and investors across all price ranges. Anecdotally, some investors are holding on to their properties and expanding their portfolios. With October elections we may see an ongoing shortage of listings over the next couple of months, with the hope that this may pick up as we move more towards the Summer months. Demand is expected to remain strong and we see no sign of this changing in the immediate future.” (REINZ)

The current Days to Sell of 40 days is much less than the 10-year average for September which is 53 days. There were 25 weeks of inventory in September 2020 which is 10 weeks less than the same time last year.

Northland_Sep2020

Regional Analysis - Waikato

“The Waikato region hit another record high median house price this month for the fifth month in a row reaching $635,000, up 14.4% year-on-year. Hamilton City and Taupo District both reached new record high median prices at $676,000 and $630,000 respectively. Sales volumes were up 37.8% from the same time last year and it was the highest number of September sales since 2015. Days to sell for Waikato were the lowest for a September month since 2005 at 30 days. Asking prices for the region have remained steady, increasing 0.7% from to August 2020. However, new listings have increased 21.2% year-on-year with 801 new listings coming to the market in September. Properties are selling quickly with lots of buyer interest and multi-offers being made. With international travel and holidays off the cards, it seems that purchasers from across the regions are looking to the Waikato, particularly Taupo and Coromandel, for a first or second residence or holiday home.” (REINZ)

The current Days to Sell of 30 days is much less than the 10-year average for September which is 40 days. There were 12 weeks of inventory in September 2020 which is 5 weeks less than the same time last year.

Waikato_Sep2020

Regional Analysis - Bay of Plenty

“Median prices in the Bay of Plenty increased 17.8% year-onyear in September, reaching a new record high of $709,000, the first time the region has exceeded $700,000. Within the region, record median sales prices were reached in Rotorua District ($521,000), Tauranga City ($780,000), Western Bay of Plenty District ($755,000), and Whakatane District ($661,000). Vendor asking prices are down slightly -2.6% month-on-month as expectations start to align closer to median sales prices. Sales volumes were up 31.2% for the region and for the Katikati/Waihi Beach ward, sales volumes were up 220% showing how interest levels in beach and lifestyle properties is continuing to increase. Open home attendance has increased as interest levels remain high from first time buyers and investors looking to take advantage of the low interest rates. Multi-offers remain common practice throughout the region, with back-up offers becoming more prevalent. Normally in the months leading up to an election we would see a drop off in numbers, however, that doesn’t seem to be the case in the Bay of Plenty as demand continues to outweigh supply.” (REINZ)

The current Days to Sell of 36 days is less than the 10-year average for September which is 45 days. There were 12 weeks of inventory in September 2020 which is 2 weeks less than the same time last year.

BOP_Sep2020

 

Regional Analysis - Gisborne

“Gisborne saw median house prices increase 45.8% from the same time last year to a new record high of $560,000. Sales volumes remained flat year-on-year in Gisborne, the only region nationally to not increase from the same time last year. However, listings increased 18.5% from the same time last year with 64 new properties listed in September. This is hopefully the first sign of improved stock levels after a couple years of low listings and inventory. Asking prices have held strong from August 2020 and increased 7.8%, likely due to the continued strong levels of demand and low supply. A large portion of buyers are locals upgrading their current properties, or ex-pats returning to the region considering they cannot take their usual international holidays due to COVID. Demand from first time buyers has been high, particularly in the lower price bands which has in turn pushed these prices up. Anecdotally, we are hearing that obtaining finance is not an easy process and banks are taking up to 4 or 5 weeks for an appointment.” (REINZ)

The current Days to Sell of 33 days is less than the 10-year average for September which is 35 days. There are 17 weeks of inventory in September 2020 which is 11 weeks more than the same time last year.

Gisborne_sep2020

Regional Analysis - Hawke's Bay

“The Hawke’s Bay region had a median house price of $585,000 in September, up 17.0% from September 2019. Sales volumes also increased 21.2% from the same time last year to 263 properties sold – the highest number of properties sold in a September month since 2006. Listings decreased -8.0%, bringing the region to the lowest level of inventory that it has seen since July 2019. The HPI for the Gisborne/Hawke’s Bay region saw the largest annual percentage increase at 15.8% to a record 3,350. First time buyers have become more active in the market, likely due to the low interest rates and lack of LVRs. Investors are also taking advantage of low interest rates and have been showing interest at all levels across the market. The increasing levels of demand has created tough competition, resulting in multi-offers on many properties.” (REINZ)

The current Days to Sell of 29 days is less than the 10-year average for September which is 36 days. There were 8 weeks of inventory in September 2020 which is one week less than the same time last year.

Hawkes Bay_Sep2020

Regional Analysis - Taranaki

“Median house prices in Taranaki reached a new record high of $485,000 in September, up 21.3% year-on-year, the third consecutive month of record highs. New Plymouth District also had a record median high of $570,500. Taranaki saw the lowest number of days to sell for the month of September since records began at 24 days. There is a good increase in new listings coming to the market, however, demand has also remained high and continued to outweigh the levels of inventory, meaning that properties are selling quickly and inventory is down -50.7% from where it was this time last year. First time buyers are active in the market, attending open homes and are proactive in making offers. Investors have also been looking to take advantage of the low interest rates and are willing to put forward strong offers to secure their purchases, particularly as international travel is off the cards for the near future and many feel that their money is better off invested rather than sitting in a bank account. The strong competition between these buyer groups across all levels of the market has unfortunately meant that first home buyers are often missing out when multi-offers are made on a property.” (REINZ)

The current Days to Sell of 24 days is much less than the 10-year average for September which is 40 days. There were 11 weeks of inventory in September 2020 which is seven weeks less than the same time last year.

Taranaki_Sep2020

Regional Analysis - Manawatu/Whanganui

“The Manawatu/Wanganui region reached another record high median sales price in September of $463,000, up 16.6% from the same time last year and the third consecutive month of record highs. Whanganui District itself reached a new record median house price of $400,000 in September, the forth month in a row that it has reached a new record. Days to sell were the lowest for the month of September since records began, sitting at 23 days, the lowest of all regions in September. New listings decreased -5.0% in September when compared to the same time last year. This shortage of listings and extremely high levels of buyer demand has created upward pressure on asking prices, which increased 3.2% from August 2020. Multi-offers made on properties have continued to exceed vendors’ expectations. Attendance at open homes has increased around 10% on August 2020 where upwards of 20 parties may be showing up at an open home. The highest levels of interest have been shown for properties in the sub-$500,000 category, largely driven by first time buyers. Interest from out of town buyers has increased, putting further pressure on stock levels. As the months continue to get warmer, we may expect these high levels of activity to continue through until the end of the year.”(REINZ)

The current Days to Sell of 23 days is much less than the 10-year average for September which is 38 days. There were 7 weeks of inventory in September 2020 which is four weeks less than the same time last year.

Manawatu_Sep2020

Regional Analysis - Wellington

“The Wellington region once again reached a new record median house price in September of $735,000, an increase of 13.1% from the same time last year. Record median prices were reached in Kapiti Coast District ($704,400), Lower Hutt City ($702,000), Upper Hutt City ($710,000) and Wellington City ($862,000). The REINZ HPI for Wellington region reached a new record high in September of 3,182, up 14.5% year-on-year. Listings for Wellington increased 6.2% in September with 602 new properties coming to the market. Listed properties are selling quickly as potential purchasers are experiencing the “fear of missing out” and want to ensure they are able to secure what they want. Demand for good properties is spreading further from Wellington City with people increasingly looking to the surrounding districts and cities as a result of COVID and the new opportunities of working from home. We are yet to see what the long-term impact of COVID will be, but expect the demand and supply issues will continue through the remainder of the year.” (REINZ)

The current Days to Sell of 27 days is less than the 10-year average for September of 32 days. There were 6 weeks of inventory in September 2020 which is two weeks less than the same time last year.

 

Wellington_Sep2020

Regional Analysis - Nelson/Marlborough

“Median prices increased in the Nelson/Marlborough/ Tasman region in September, up 15.0%, 14.2% and 7.1% respectively. Tasman saw its highest volume of sales (104 properties) since December 2002 up 42.5% and its lowest number of days to sell for the month of September since 2004 (27 days). Marlborough achieved the largest percentage increase in new listings in September when compared to the same time last year with a 34.6% increase (105). Open home interest has remained strong throughout properties’ marketing campaign periods with pre-auction offers occurring regularly. Vendors are aware of the local and national trends and are therefore expecting a premium price for their properties. The region continues to attract out-of-towners looking to relocate or find a holiday home which has been adding pressure on demand and resulted in an increase in multi-offers. The pre-election lead up has not cooled vendor or purchaser activity and we expect these same activity levels to continue through the Christmas/New Year period.” (REINZ)

The current Days to Sell of 28 days is less than the 10-year average for September which is 35 days. There were 11 weeks of inventory in September 2020 which is 3 weeks less than the same time last year.

Nelson_Sep2020

Regional Analysis - West Coast

“Median prices for the West Coast have increased to $250,000 in September, up 35.1% year-on-year. Sales volumes for the region were up 57.9% year-on-year, reaching 60 sales – the highest number of properties sold since May 2018. Interest in the West Coast has remained positive and it appears that out-of-towners are starting to realise the benefits of moving and buying in the region. Whilst being one of the more affordable regions, the West Coast also boasts a relaxed pace of life that people may be looking for after an ‘interesting’ year. Increased demand has meant a resurgence of weekend open homes, a practice not regularly required as there is normally plenty of time for private viewings throughout the week. Multi-offers are becoming more common as low levels of stock create competition between buyers. We expect the regular Spring/Summer uplift of activity to continue in the coming months.” (REINZ)

The current Days to Sell of 49 days is much less than the 10-year average for September which is 90 days. There were 54 weeks of inventory in September 2020 which is 17 weeks more than the same time last year.

West Coast_Sep2020

Regional Analysis - Canterbury

“The Canterbury region reached $500,000 for the first time in September, up 11.1% from the same time last year and a new record median. Christchurch City ($503,000), Kaikoura District ($595,000), and Timaru District ($392,000) all reached new record median prices. Sales volumes increased 39.0% year-on-year to 1,173 properties sold, the highest level since March 2016. There are strong levels of demand across the region, particularly in the sub-$500,000 category, where many first time buyers are trying to get their foot on the property ladder. Listings were down -5.4% year-on-year in September, amplifying an already tight market and increasing competition. Open homes are becoming more popular and attendance numbers are increasing, resulting in faster sales and an upward pressure on prices. Investor activity is remaining strong in the region and presenting strong competition for first time buyers. Access to finance is a continuing issue for many purchasers and the approval process from the banks is slow.” (REINZ)

The current Days to Sell of 30 days is less than the 10-year average for September which is 33 days. There were 12 weeks of inventory in September 2020 which is six weeks less than the same time last year.

Canterbury_Sep2020

Regional Analysis - Otago

“The Queenstown Lakes District saw median house prices increase 12.7% year-on-year in September, reaching $1,059,000. There continues to be strong interest from out-of-town purchasers, looking for a holiday home, particularly in the upper end of the market. The shortage of available listings is expected to maintain prices. Generally, we see a slowdown in activity before an election, however, that hasn’t been the case this year and activity levels have remained buoyant.” (REINZ)

“Median prices in Dunedin City reached $568,000 in September, a new record high for the city, up 17.1% year-on-year. Sales volumes increased 2.4% from the same time last year to 216 properties sold. There are more investors in the market than the same time last year as they are taking advantage of the low interest rates from the banks. Activity levels are expected to remain high through until the end of the year, particularly after the election where we normally see an increase in properties coming to the market.” (REINZ)

The current Days to Sell of 32 days is less than the 10-year average for September which is 34 days. There were 17 weeks of inventory in September 2020 which is seven weeks more than the same time last year.

Otago_Sep2020-1

Regional Analysis - Southland

“The Southland region saw median house prices increase 7.1% annually in September, reaching $339,000, partly attributed to the uplift in properties sold over the $500,000 mark. The REINZ HPI for the region reached a new record high of 3,555, up 13.1% annually – the third highest growth rate across the country. Sales volumes also increased 30.5% year-on-year to 184 properties sold, with Gore District (+21.1%), Invercargill City (+30.9%), and Southland District (+36.0%) all seeing strong increases in the number of properties sold. Activity levels from first time buyers and investors continue to increase as low interest rates attract more buyers to the market. Listings for the region are up 20.7% from the same time last year which has helped improve options for the influx of buyers. Open homes have been busy, and interest has been spread across the market. Looking forward, we expect the market to continue in a similar manner as we’re seeing currently.” (REINZ)

The current Days to Sell of 29 days is less than the 10-year average for September which is 33 days. There were 11 weeks of inventory in September 2020 which is two weeks less than the same time last year.

Southland_Sep2020