The average value of New Zealand homes increased by just over $217,000 in the year to October, according to the latest valuation figures from property data company CoreLogic.
This shows that the average value of New Zealand dwellings of all types throughout the country increased from $753,038 in October last year to $970,174 in October this year, a rise of $217,136.
And the obstacles of lockdowns and threat of higher interest rates does not appear to be impacting the ongoing rise in residential property values so far, with the average value of all New Zealand homes increasing by $19,945 in the month of October alone.
Perhaps surprisingly given the lack of international tourists visiting in the last 18 months, the biggest increase in average residential property values was in Queenstown-Lakes, where the average value increased by $375,884 in the 12 months to October. This was followed by Central Auckland where it was up by $334,842, and Wellington City which had a rise of $325,153 for the year.
Only two cities recorded annual increases in property values of less than $100,000 for the year - Invercargill at $91,225 and Timaru on $77,202.
Average values increased by more than $40,000 in three districts in the month of October - Manukau in Auckland up $47,975, Tauranga up $45,030, and Rodney in Auckland up $42,677.
The average value of all dwellings in Auckland was $1,381,456 in October. That's up by $288,051 since October last year.
Only one city recorded a decline in average values in October and that was New Plymouth, where the average declined by $10,460 for the month to $663,244.
The first table below shows the current average dwelling values in the country's main urban centres at the end of October and how much they have changed in dollar terms over one month and 12 months.
The second set of tables gives the current average values for all urban districts and their percentage changes over three months and 12 months.
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68 Comments
lol
And if you are borrowing that extra $217k, over the term of your loan, it might as well be closer to $400k. Yes/no?
Tell us something new.
Someone should ask Jacinda that even today house price is increasing month over month ....still
Her reaction will be.....
Jacinda and Orr are and will play passing the buck.
Will be in media for a day or two and both of them will be laughing all the way as been successful in fooling all the people all the time.
Not to forget hide behind COVID-19 - which was also used to jack up the ponzi.
Long Live beloved Aunty J..and Uncle O....
This comment may be deleted but have to mention the truth that What Hitler did to.... same is done to FHB and average Kiwi by democratically elected ...
Her reaction Tks&o? Oh I don’t think the house across the road has sold since the last time I looked, so how can you expect me to know. And that therefore is a very unfair question and deserves a real biggy frown and pout!
Not to forget pandemic
Her response will be frown..."be kind".
Her awesome commercial background will have tought her that banks and speculators under pressure are many things, but kindnes is not one of them.
Her reaction will be…
“We will need house prices to be sustainable”. We want house prices to raise sustainably and gradually in small increments, such as 5% a month”
What can she do at this point?
Theyve done taxes on property, deregulated construction, migration is at net zero, and interest rates are rising rapidly but people are still buying.
Everything that I could have imagined has been thrown at the housing market. And it hasn’t stopped. Yet.
3 is a good number:
- Stop allowing freshly created money to be used to buy existing housing.
- Stop allowing interest only loans on existing housing
- Increase rates/tax on long term, vacant investment properties
What could she do??? maybe stop printing copious amounts of money, maybe reverse their ridiculous decision to require the RBNZ to not be all that worried about inflation anymore.
Labour caused this, and the worrying thing is that they and their supporters don't even seem to understand that.
She could do what they have been doing in jurisdictions where housing is affordable, just like we used to do, and were also affordable.
That is, remove restrictions to land access, both up and out, within the framework of rules that protect what is important, ie sunlight, environmentally sensitive land, elite soils etc. Other than that, go for it.
What this does is open up potentially far more land than the land bankers can ever game the market and stops land banking. This does not always mean any more houses get built, but any that do are as the market demands and allows supply to meet demand at more affordable prices.
This is different to what National and Labour have agreed to under their latest zoning change fiasco.
I bought a lot of shitters over the last year and a half and have been slowly working through some big renos. Viva la printing money.
Yeah someone made a good comparison between the current housing market and the lockdown toilet paper market....
Of course big renos cost big money... not the banks money I think as they have already tightened lending criteria for lvr and dti. Is that what you found
No worries. We all hope that you pay your deserved amount of, Capital Gains Tax then.
This can't go on for much longer can it? Reality is just around the corner. Isn't it?
People were saying that when they voted in Key.
It is one helluva big corner, in fact maybe it is just a circle.
Depends if interest rates get back to realistic levels, with Orr and Labour running things, not sure if that will ever happen.
Orr - I wonder why everyone's putting their 'eggs into one basket'?
Unbelievable...
Eggs into one basket? The government is a basket case alright. The saintly halo has gone awry and the shell is cracking.
Why is a DTI complicated to whack in place? Put a DTI of 4.5 (copy the English). Let the cards fall where they may. Easy.
Third world status can’t be far away now surely.
House Price fall, how can you say such a thing, our PM has assured that does not want house price rise to fall ever as long as she is in power.
What she does not realise is that house price may be should not fall annually but if they go up by 50% or 100% and than if it falls by 5% to 10% is not a fall as people surrounding her makes her to believe by taking advantage of innocence ( by saying this and giving her benefit of doubt am being generous to Jacinda)
NZ need leader not politicians ( vote bank politics is toxic and bad).
Good plan. Except everybody with a mortgage stops spending. Ah well.
They only seem to be spending on more houses.
In reality, the Govt is making sure only 2 divisions of society remain in NZ. Rich & poor, have already converted middle class to poor, NZ is already turned into 3rd world country, just check people living conditions (mouldy and trashy tin houses), inflation, child poverty and more & more people turning for Dol benefits and state housing.
Shame JA for not saying a word & hiding behind covid briefings, there also govt is failed as the elimination strategy is trashed weeks back.
Rich and poor, and also becoming more racially divided by the day now too, thanks Labour.
https://www.1news.co.nz/2021/11/01/tide-is-changing-on-house-prices-res…
Greg Ninness, Is this not what Mr Orr said in March when was under pressure ( after similar data / news that in february house price rose by $100000) and again today being under pressure ( not that he cares) is he not singing the same tune.
Why is it that he always gets away and is not held accountable for his action as well his words / assurance which in hindsight proves were false and only said to divert.
Does media not have access to ask him question and importantly counter questions so that they do not feel that they got away by fibbing.
To put everything in perspective , Tesla, a single company, which like the New Zealand housing market can also launch objects into space, has a similar market cap , when compared to the entirety of New Zealand home values of 1.6 trillion , has risen in value by 800 billion over the past year or 202 percent or 54 percent over the past month. Its a funny old world with shedloads of money looking for a target.
Market capitalization is a funny old mirage. When the herds decide to sell it evaporates just as quickly as it appeared.
Nominal values increase beyond what our perception of that number allows. I think this might be currency debasement. I'd love to see the average monthly mortgage payments in NZ instead and see if how much that has changed. With debt so high, they can't raise rates without crashing everything. The very thing they were trying to avoid by stimulating in the first place.
Should be interesting to see how the next few months play out with these mortgage hikes and the LVR improvements.
That's 217,000 more reasons for our best and brightest to get on a plane and experience the world beyond these increasingly dismal shores.
It's got so far to drop to make any real difference.
This sh*t is ridiculous.
'These dismal shores' is a great song title
To Australia, where house prices are only up 25% in a year?
https://www.corelogic.com.au/research/monthly-indices
Yeah but Aussie is so big you could live in a tent in the outback and nobody would know your there. Take your metal detector and wander about the place all day looking for Gold. All good if you can cope with the heat, the flies, the croc's and everything else that's shit about the place.
How many more New Zealanders have joined the ranks of current home-owners that could not afford to buy their same home today? Probably quite a few.
And that's the problem with "Supply!". More and more people can't afford to move - the friction costs and the replacement price make it impossible. So they stay where they are, and we wonder why 'Supply!' falls.
And all that's fine, until just a few people HAVE to sell. You know, for the same old reasons, including the biggest one of all - relationship breakdown (that from what I see about me is on the up as Covid pressures of all kind hit) and the price of all properties about them is assessed by lenders at that new 'market price'. Then owners dig in for a longer haul, comforted by the fact that "Property never falls!"
That's the thing about market corrections - it doesn't take much to push them over the edge, and' holding on' becomes a frightening experience with no known end in sight.
(NB: It's a human condition to 'run your losses'. It takes a dispassionate view to cut, and if there's one thing the Property market has in excess - it's Passion.)
Yes agreed.. I read somewhere that different money styles was one of the biggest reasons for relationship break downs in younger couples. I guess when you have an outrageously big mortgage plus all the associated costs with having a baby. Man I’m glad I’m not in my 20’s anymore, they have every right to feel let down by…well..pretty much every public figure over the last 20 years. What a mess!
Reckon If you in your twenties and not scared of hard work you have great future.
Hahaha! Hilarious. Good one.
I'm in my early 30s. Day in, day out, for the past 12 years, I've put in the hard work. I'm talking 80/hour weeks on with tough work. Starting out in London and ending up in Wellington. And it got me no where.
Hard work and a great future have no correlation anymore. And saving? Forget it.
I feel like I had a much better lifestyle in London than here and the south of England is lovely. Much more stuff to do with kids too.
Have you got a penchant for crap PM's Brock?
Boris is a tard. But England is much less of a nanny state than here.
Some time ago there was an ability to buy, save and improve, sell and move up a bit and do it all over again. If that function does now exist, then it depends almost entirely on the ability to borrow rather than save. Debt is trumping just about all walks of life these days.
https://www.stuff.co.nz/business/126856502/adrian-orr-says-reserve-bank…
Mr Orr now admits from not having any role to bit role. Please tell him that even if he dies BIT with least regret a ttitute as he dud to promote ponzi instead of wait and watch will be BIG to control Housing ponzi but has to do that BIT withintent.
Trust in dollars is gone.
That's the problem with having people running the country who are out of their depth.
Value of the dollar bill is dropping. $1 ain't what it used to be. Its ok though I'm sure it is all just transitionary...
Really is this good for the country?
Humans were supposed to be smarter than animals.
Serious question. Is any journalist actually going to hold the PM to account over this travesty?
and I don't mean ask the question once and then thank her for a smiley nod, I mean actually hold her to task over it, point out her broken promises, hold her to account on her endless soundbite quotes in the election and her dopey twitter posts while in opposition.
I mean really why do we even bother with the media now?
There will be fireworks soon enough.
The designers of agenda 2030 (who play the "Build Back Better" music Ardern, Johnson, Trudeau, the Australian PM, and even Biden, dance to) have been loading the trap with cheap debt and every "greater fool" and his dog have been lured in by greed and delusion.
Again, the media play a vital role in drumming up that greed which also serves the banks nicely.
Remember, to "build back better" and implement their central bank digial currencies, the existing system needs to be shown as no longer workable. So, the current broken banking and monetary system (and literally everything else) is going to be pulled and reshaped (isn't it?). The wrecking-ball has already started demolition - lockdowns worldwide.
People still getting suckered into the stock market and property market in these times and curcumstances have missed the World Economic Forum's big picture and message which is anything but hidden. It's on their website, in their speeches and enacted already by their "graduates" of which Ardern is one of their stars.
They plan to demolish and "build back better". Which means "better" for them, not you. You are not in the club.
So, how do we come out of this? According to their advertising over the last 3-4 years, we will "own nothing (and that includes property, folks!), have no privacy but life will not have been better".
Hmmmm....
“You can resolve to live your life with integrity. Let your credo be this: Let the lie come into the world, let it even triumph. But not through me.”
~Alexander Solzhenitsyn~
Lets go, Brandon!
Price not value*
What does the child poverty minister have to say on the negative consequences of high prices?
Guess you cant ask unless you are "accredited media" as we have learnt today...
Wasn't that awful. She is an expert controlling the media, and therefore the narrative. I didn't vote for her but I had a genuine hope she would at least try and do what's best for the country. How wrong was I.
Hopefully the sheepels have realized most of what she has to say is BS. Since labour have been in power they have only managed to divide NZ more and more. You are either a have or a have not. When I used to live OSeas I used to rave on how NZ does not have a class society and everything was quiet flat and people where on a even level. This is not the case now..and the social issues around poverty etc will only increase with this rapid divide.
So you were lying to people overseas because NZ has always been a class-based society.
Maybe but its nothing like say England where I was born in 1967.
"least regrets"
Now if they only let people top up their mortgages 20-30k a year, they could probably keep the prices rolling higher with pure debt paying the top-up.
Forcing banks to let people pay down a de minimis/% amount on an annual basis without incurring break fees would be a good step.
This is common in other markets yet few banks let you do it here, and some lock in a new repayment rate for the rest of your loan term if you change it upwards.
I've been thinking of a New Zealand version of Monopoly where every time a player laps the board the prices increase by 20%, rents rise 10%, the interest rate on mortgaged properties drops by 50bps, the bank imposes seemingly random/arbitrary rules on equity and you can object to your neighbors building houses/hotels on land they've purchased.
...and the older players get to take 5 turns around the board before the younger players are even allowed to start.
Love it Squishy, you got it so right!
Do you remember the good-ol-days when anyone could play?
OCR 2% lower than 10 year bond and when inflation is deducted from OCR the effective rate is minus 4.4%
And then we are surprised that borrowing and leverage continues t be frenzied? They wanted it and they have it
Yep plenty of people have calculated that its free money and have poured it all into housing. The die is now cast and it cannot be reversed.
Thank goodness for increasing house prices - the only way for the average taxpayer to save enough for a graceful retirement versus the alternative NZ pension system which results in a poverty pittance because of draconian taxes killing any meaningful retirement amount. Our TTE retirement savings system is the opposite of most relevant countries' (think Canada, Australia, USA) EET savings systems which are far and away superior systems. The only remaining retirement scheme in NZ that avoids poverty in retirement is the parliamentary 'defined benefit' scheme, along with the scheme for judges (both taxpayer funded). The rest of us get royally rogered.
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