House prices continued rising in November with the the Real Estate Institute of New Zealand's national median price setting a new record of $455,750, which was up 6% compared to October and up 7.2% compared with November last year.
The number of homes sold was also on the rise, with 7,416 dwellings selling in November, a 12.2% increase on October's sales and and a 6.5% increase on November last year.
"The November data shows there was an element of buoyancy returning to parts of the real estate market, with new record median prices at the national level, along with regional records for Auckland, Wellington, Canterbury/Westland and Waikato/Bay of Plenty," REINZ chief executive Helen O'Sullivan said.
"Commentary from around the regions suggests that the top ends of a number of regional markets are performing well, with the middle and lower ends doing less well," she said.
In the Auckland region the median price rose to a record $670,000, an increase of 4.6% since October and up 8.1% since November last year.
Strong price gains were recorded in all districts within the region, with the median at $792,000 on the North Shore (up 3.9% compared to October), $602,000 in Waitakere (up 4.1%), $780,000 in central Auckland (up 4%), $620,000 in Manukau (up 3.3%), and $630,000 in Rodney (up 4.5%).
In Hamilton the median rose 6.5% for the month to $380,000 and in Tauranga it was up 1% to $390,000.
In Central Wellington the median increased by 2.9% for the month to $550,000 and in Lower Hutt it increased 5.3% to $370,000.
In Christchurch the median was up 3.9% for the month to $446,750 and in Dunedin the median increased 5.1% to $270,000.
In a First Impressions note on the latest REINZ figures, Westpac chief economist Dominick Stephens said on a seasonally adjusted basis the number of sales was up 14.2% for the month, its biggest monthly increase since 2008, while the REINZ's House Price Index increased by 2.4%, its biggest monthly increase since 2005.
"This more than confirms our long held view that the housing market would respond vigorously to lower mortgage rates and booming population growth once the election and the revaluation of Auckland properties had passed," he said.
The REINZ itself said its national Stratified Median House Price Index was up 6% year-on-year to a new record high of 4,118.7. The Auckland, Christchurch and other North Island indicies also hit fresh record highs, with the Auckland one up 9.4% year-on-year, and Christchurch up 9.2%.
See REINZ's full release on regional data here.
Median price - REINZ
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21 Comments
Yip , property is a one way bet ..... for now ........ encouraged by :-
- A tsunami of wealthy migrants with cash
- Banks awash with cash to lend to locals
- Lowest interest rates in a generation
- Almost zero inflation
- A critical land shortage stranlged further by land banking.
- Huge barriers to subdivision
- Massive DC costs
- Auckland Council town planning incomptence.
- and Zero political will to address any of the above factors .
Interesting that according to Reserve Bank mortgage approvals for the 4 weeks in November last year were 25,502 versus 25,356 this year. Could that be proof that foreign purchaser funds are pouring into NZ - shouldn't mortgage approvals be up by the same 6.5% that sales volume has increased by?
I went to see this little newly renovated cottage at 33 Norfolk St in Ponsonby this afternoon. It has been immaculately done inside and out. Agent advised the feedback is around 3 million. WOW I nearly fell off the stairs! If you are keen the auction is tomorrow - be quick, it will go!
http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=113…
http://www.trademe.co.nz/property/residential-property-for-sale/auction…
Oh dear, 33 Norfolk St, Ponsonby was passed in at $2,120,000 yesterday. What a shame, but if you are still keen the negotiation is happening right now. I am guessing the vendor expectation is now around mid-2.
Sold in the last 2 weeks in the eastern suburbs, supporting the recently reported price surge in this area.
9 Poto St, Remuera - Sold at auction $2.55m
21 Raumati Rd, Remuera - Sold at auction $2.91m
74 Selwyn Ave, Mission Bay - Sold at auction $2.66m
12 Raumati Rd, Remuera - Sold post auction $1.73m
474 Remuera Rd, Remuera - Sold by neg $3.2m
102 Arney Rd, Remuera - Sold at auction 1.661m (mortgagee auction)
15 Wairua Rd, Remuera - Sold at auction $2.2m
30 Omahu Rd, Remuera - Sold at auction $3.04m
96 lonbern Rd, Remuera - Sold at auction 1.86m
It's a bit of the middle of the middle of nowhere. Whats the local economy? Agriculture and Forestry?
The buiding style looks suspiciously like low cost council/ministry housing.
Whats local population demographics? town growth and age spread?
Town facilities, what is there apart from a pub and primary school.
Rotovegas isn't exactly boomtown material (dispite government spending on tourism) so back and beyond of Roto doesn't sound easy to get good rents or mindful tenants.
I'm wondering if it would even be feasible to build something like that in todays market. (neg cap gain, selling on intangiables already)
Weird, am I the only one that looks at polished boxes like that and shudders with revulsion?
Recently looked at a property as a possible purchase (in Feilding) had to walk away there too. massive yard, groomed within an inch of it's life. So photogenically laid out (inc spade and fork in recently turned garden) that I knew it was just all downhill from there....
This house is probably for the younger professionals (between 25 and 40 y.o.) who are loaded with million of dollars of cash earned from their OE, who are minimalists, like living in central Auckland city, like the hustle and bustle Ponsonby Rd provides, love clean lines, appreciate low maintenance garden and landscaping, and think they are from the future generation. Go figure.
Cowboy, here are a couple of properties currently in the market that have more personal touches and I think you will like them.
http://www.trademe.co.nz/property/residential-property-for-sale/auction…
Still definitely not my pick, but at least these have character.
With these ones I get that feeling of ...where's everyone else. Kitchen built to feed ten, living room only useful for worshiping TV. Pool is beautiful but I'm just a poor working sod, what do you reckon the hour cost works out on that baby? But I suppose it's worth it not to swim in public piss. Are these houses to live in? or to visit between work shifts and show to business gusts?
All geared up with pre approval but too busy on overseas holiday to be buying right now unfortunately.I'm looking forward to the post xmas surge in listings. It's been a cracker of a year in business so capital gains aren't powering my buying. I wonder how many others in Auckland and Christchurch are in the same boat? In the circles I talk in (nz resident) people are making a lot of money. Bad news about the dairy side of course but we don't talk about that much. Onwards and upwards I guess.
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