House prices rocketed up to new records in October on the back of cheap mortgage money courtesy of the Reserve Bank.
According to the Real Estate Institute of NZ, the national median selling price hit a record high of $725,000 in October, an increase of $36,000 (+5.2%) in a month and up by $120,000 (+19.8%) since October last year.
In Auckland the median selling price increased by $45,000 in the month of October, rising from $955,000 in September to $1 million in October.
That was a 4.7% increase for the month and a 16.3% increase for the year.
For the rest of the country excluding Auckland, the median price increased from $585,000 in September to to $600,000 in October (+2.6%), putting it ahead by 15.4% compared to October last year.
Record median prices were set in Northland, Auckland, Waikato, Bay of Plenty, Gisborne, Manawatu/Whanganui, Wellington, Marlborough, Canterbury and Otago (see the interactive chart below for the full regional price trends).
The strength of the market was underscored by strong sales volumes, with 8830 residential properties sold in October.
That was the highest number of properties sold in any month of the year since May 2016 and the highest in the month of October since 2006.
In Auckland 3140 properties were sold, up 50.9% compared to October last year.
That was the most properties sold in any month of the year since March 2015 and the highest for the month of October since 2003 (see the second interactive chart below for the full regional sales volume trends).
Properties were also selling more quickly, with the median days to sell dropping from 34 days in October last year to 29 in October this year.
However REINZ chief executive Bindi Norwell raised concerns about the effect the surge in prices was having on affordability in Auckland.
"While this is a significant milestone, it raises serious questions around future affordability for Auckland residents wanting to get a foot on the property ladder," she said.
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