The next year should be as good one for the real estate industry, with continued regional growth and Auckland "potentially starting to see some uplift," Real Estate Institute (REINZ) chief executive Bindi Norwell says.
In the REINZ 2019 year in review for the real estate profession Norwell says the year has been another interesting one for the industry.
"We’ve seen record median prices reached in many parts of the country, with November itself seeing 10 new regional records and one record equal."
Norwell said the 2019 property market has been influenced by a number of key themes including:
- The ongoing effects of the foreign buyer ban which came into effect in late 2018 and appears to have impacted sales volumes, but not had the intended flow-on effect for sales prices
- the further stabilisation of pricing in the Auckland market which has hovered around $850,000 for about three and a half years now – although the last three months have started to show signs of an uplift
- The continued strength of the regions in terms of price growth with increased demand and a lack of supply of properties, putting pressure on prices in some areas
- The record low OCR and low bank lending rates has meant eased accessibility for more first time buyers
- The proposed Capital Gains Tax which caused many people, particularly investors, to take a ‘wait and see’ approach.
Norwell said the strengthening prices across the country have potentially had an impact on the sales volume with numbers down -2.6% across the country.
"However, when we look at the total value of property sold in the 11 months ending November 2019 compared to the same period in 2018, we see a 0.2% increase, showing that the overall spend across New Zealand in the property market throughout the year is remaining rather steady.”
The below table highlights sales statistics in the 11 months to November: