The median house price in the Waikato/BoP increases by more than $1000 a week from Sep '14 to Sep '15; house sale volumes nearly double

The median house price in the Waikato/BoP increases by more than $1000 a week from Sep '14 to Sep '15; house sale volumes nearly double

Auckland’s housing crisis is seeing buyers move south, sending house prices and sales volumes sky-high in the Waikato and Bay of Plenty.

Real Estate Institute of New Zealand (REINZ) figures just released show sales volumes in Hamilton doubled in September, compared to September 2014, rising to 463.

Sales volumes across Waikato and the Bay of Plenty increased by a whopping 85% over this time to 1,619.

Meanwhile the median price across the region rose by 17% over the year, to $390,000.

Most notably, the median selling price in Mt Maunganui/Papamoa jumped 30% to $582,000; Taupo, 27% to $395,000; Tauranga, 26% to $472,500; and Hamilton 13% to $425,000.

In Mt Maunganui/Papamoa and Taupo, much of these increases occurred between August and September, with the median price surging 18% in this time.

Prices in Tauranga and Hamilton had already been trending up, as they only increased 1% and 2% over the month.

Rotorua and the Eastern Bay of Plenty experienced decent gains of 7% and 6% respectively between August and September, despite median prices in these areas dropping by similar amounts from September last year.

The number of days to sell in the Waikato/BoP was 33 days in September, which was 19 days less than in September 2014. Put in context, over the past 10 years the average number of days to sell during September for the region has been 47 days.

REINZ regional director Philip Searle says the influence of Auckland buyers is being keenly felt in Waikato and the Bay of Plenty.

“Both the numbers of first home buyers and investors are increasing. Although the number of listings has increased across the region, the volume of sales has meant that available listings remain very tight,” he says. 

The median house price in the Auckland region rose a whopping 25% in September compared to September 2014, to $771,000.

The median selling price across the country was $484,650 in September, up 4.2% compared to August, and 15.4% compared to September last year.

Commenting on the Waikato and Bay of Plenty specifically, REINZ says, “The trend in median price is now steady, although the trend in sales volume is now rising. The days to sell trend is improving, with the overall trend for the region continue to improve.”

 

 

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I wonder if the Aucklanders rushing headlong into these markets are being wise. These are markets that do not have the same land supply constraints in the long term.

Capital gains will also be reliant on a never ending supply of Auckland investors competing for property in the regions as the locals sure as hell won't be able to compete in the long run.

based on price to income ratios the 'locals' are more capable of funding a house in their own region than the average aucklander is in their own region.

Tauranga has only just recently eclipsed its 2007 peak. There is still plenty of wind in the sails as we have Auckland investors coming down in their droves, Aucklanders moving to live in Tauranga, the increased drift from Waikato to be closer to the beach (now that their properties are worth more) and a local economy that is thriving. Tauranga property prices are still cheap as chips when compared to Auckland prices. This will continue for a little while yet me thinks.

and what about jobs?

don't confuse Auckland's "investors" buying in Tauranga with Aucklanders moving to Tauranga.

And yes, when comparing to Auckland prices, Tauranga's are cheap. But if we compare to local economy and local salaries then Tauranga's houses are severly unaffordable (6-7 times annual household income).

I live in Tauranga but I'm afraid I don't see the economy thriving. I have seen more real estate agents and some of them have now fancy cars though..

it was reported that the Tauranga has the highest job growth in the country.

But, it seems mainly in the construction industry..... those jobs evaporate very quickly.

At this compounded rate, we true Kiwis shall all be a multi-trillionaires by the time the penny drops, or immigration dies off.

Cos,This land banking lark sure is easy. Retirement, all taken care of.

Never have to pay it back, never have to worry where the next dollar is coming from. again.

Prime real estate mate.

Kiwisaver...Pssttt...Why bother.

Let others stow away their money and the bosses and the missus's until 65 or more.

Just keep refinancing, every so often, even get an ipod or a few grand as an incentive.

Double up in no time at all. No need for a job, no need for a hand-up.

Working is a mugs game.

Wot milking...up at 4am you say, get a life.!. Rather live in Auwkland.

Saving is stupid, until the cows come home. Invest mate, cheap as chips.

Should have bought a coupla dozen houses. Sell them to them boyos from overseas mate. Youuz noze, dem with the deep pockets, been all over the news.

Something about flagging interest in their homeland...I heard. So herding their way over here.

So to cut a long story short, farms ain't worth loosing sleep over Fontera being yer loss leader.. leader.

And themother meat markets, SFF ..so friggin flippin a poor do..

Go for Broke, Houses mate. Money ain't worth having, just ask a bank.

Invest wisely in Waikato or Tauranga.

Auckland's tiny plots are so old hat. So last week.

Remember you heard it all here first. Small deposits, leverage up, easy as falling off a log.

Barking up the wrong tree can get you nowt for years to come.

What have you got to lose?.

Pretty Please.

Disclaimer. I have a median, medium interest, so take what I say with a pinch of salt, or a lot of luck.

Put it all on the red, Being in the black is so old hat.

Just ask any old timer.....still working it out, or working it off.

Would you credit it all..or would you believe it all..?

By the way..

All Blacks, no debt, World Leaders in bringing home the bacon. Not a farmer among em. Good old kiwis..every one.

Dem Poms, got nuffin on us. (Anuvver disclaimer, I used to be one).

Let us pray. our Cup never runneth over. We need the bleedin tourists, next time.

just don't forget to research the individual properties that you look to purchase & remember to have contingency plans that'll enable you to hold out in the event that the market does drop for a few years before continuing upwards again.

Yes, we can all get very rich selling houses to each other.

Having just come into a small inheritance and we are retired, mortgage free with other money invested in term deposits and another diversified portfolio, Where oh where are we going to "invest" this small amount of around $70,000? We don't want to cash up our other monies which supplements our super and invest in property at our age, 68 and 73 respectively and go through the hassle of being landlords. New term deposit rates are laughable, so I think the only thing to do is spend it on a few good times eh. Can certainly understand the allure of the property market at the present time though.

Ride the wave without the hassle;

http://www.bloomberg.com/quote/MFLPROP:NZ

The Mindless Stupidity of Negative Interest Rates
http://wallstreetexaminer.com/2015/10/the-mindless-stupidity-of-negative...

plenty of solid yield plays find a GOOD advisor, and remember its your money if it don't feel right don't invest
http://www.dividendyield.co.nz/index.php
http://www.interest.co.nz/bonds-data/issues

We've got a really good advisor but haven't talked to him yet. Still feel we should treat ourselves now and then with some of this money though. could be dead tomorrow as my old grandmother would have said. And yes you are right it's our money and what feels right to us is right. Thanks.

carefull using 'median' with small data sets (taupo, rotorua), can be extremely volatile depending on what properties happened to be sold that month. But as all seem to be consistently up (even PN up 19% yoy!), it does point to price rises happening as opposed to just selling more of the higher value homes in these regions.

QV index will clarify is prices are acutally storming higher at breakneck rates outside of auck, but as data is 3 months old it's almost irrelevent from a decision making point of view.

Auckland's rising house prices started in the inner suburbs, extended to the outer suburbs, and now are moving into the provinces.

I travel a lot around the North Island. For many months now, house prices in the provinces have looked cheap to me.

The provincial markets are ready to boom.

Glad u agree with me now. Hasnt hit palmy yet based on my local sales report with prices still around gv or slightly above. 3 bed stand a lone houses on full section rentable at 320 a week for under 250k. An obvious miss-price with even the poorest FHB with kiwisaver able to buy up to 350k. Next biggest city behind ham/tga with 85k and counting (800 migrants, or 1% pop, gained last year, plus normal internal gain from surrounding small farm towns). Uni booming. Hospital biggest between welly and ham and expanding massively. New bridge from south side of city over to massey and new inland port on south side of city (making awapuni my suburb for growth). Full your boots.

Aucklanders are the new Chinese.

There are no limits to the property-as-the-eternal-wealth dream!

If only we didn't have to eventually wake up..