Why New Zealand and Auckland Prices Hit a Record – August Real Estate Institute Data

House prices in National and Auckland are at an all-time high due in part to the pandemic as sales rebound after closings closed and people upgrade their homes where they spend the most time.

Last month’s new national record median of $ 675,000 is up from $ 580,000 a year ago and $ 659,000 in July, according to new data from the Real Estate Institute.

The Auckland median jumped 16 percent to $ 950,000, a new record, from $ 819,000 in the same period last year and from $ 918,097 in July.

Bindi Norwell, CEO of REINZ, said many factors were working together to drive up prices, but cited the pandemic for two reasons.

“The combination of low interest rates, removal of loan-to-value restrictions, lack of listings, people’s aspiration for more space or a bigger backyard, catching up after closing, and the desire to first-time buyers entering the market have all contributed to the lift. “

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All regions of the country saw an annual increase in median house prices last month.

Economists were forecasting home price declines of 6 to 9 percent this year, either by the end of this year or by March next year.

The opposite has happened and Norwell predicted that this could continue.

“Unless we see more listings hit the market before Christmas, we can start to see additional pressure on home prices and affordability,” he said.

The weather now has a great effect on the market.

“It will be interesting to see what happens now as we approach spring, as sales volumes traditionally start to increase as the weather warms up,” Norwell said.

“As we have already seen, 2020 seems to defy all predictions and go against all norms at the moment. However, the full impact of Covid-19 may not yet be realized, particularly in relation to unemployment and the economy. . “

Northland posted an annual price increase of 16.6 percent to a median of $ 590,000, down from $ 506,000.

Whangarei district reached a median price of $ 610,000 and Bay of Plenty prices rose 11% annually to a new median of $ 665,000.

Waikato prices rose 16.7% to $ 628,000, down from $ 538,000 at the same time last year, and the fourth consecutive record median price.

Three districts in the Waikato region had record medians: Matamata-Piako district ($ 587,000), Otorohanga district ($ 418,500), and Waipa district ($ 715,000).

Manawatu / Wanganui showed a price increase of 15.1 percent to $ 450,000 from $ 391,000 at the same time last year.

Three regions of the Manawatu / Wanganui district had record median prices: Tararua ($ 320,000), Manawatu ($ 535,000) and Whanganui ($ 375,000).

Taranaki prices rose 15.3%, from $ 391,000 to $ 451,000.

Canterbury prices rose 13 percent from $ 440,000 to $ 497,000 and two districts in that region set new records: Ashburton at $ 391,500 and Waimakariri at $ 515,000.

Otago had a 17.2% increase from $ 495,000 to $ 580,000 and Southland prices rose 20.3% from $ 310,000 to $ 373,000.

Auctions were used for 16.1 percent of sales across New Zealand in August, when 1,232 properties were sold, up from 10.6 percent in the same period last year, when 650 properties were sold by auction.

This was the highest percentage of auctions in August in four years.