Reinz’s Figures: The Three Factors Driving Record Home Prices and Volumes

The housing market is bucking the trend, according to the New Zealand Real Estate Institute.

While prices and volumes generally stop in the run-up to an election year, Auckland posted record volumes and prices in September.

Chief Executive Officer Bindi Norwell said: “Typically a month after the election, people start to wait and see sales volumes start to decline.”

He cited three factors: historically low interest rates, consumers who have extra cash on hand because they can’t go abroad, and a surge in the market because of returning expats.

He noted the 53 percent increase in Auckland home sales during September “the highest in 52 months and the largest annual increase in sales volumes in 11 years.”

“The number of residential properties sold in September in New Zealand increased by 37.1% over the same period last year, from 6,112 to 8,377, the highest number of properties sold in a month in New Zealand for 42 months since March 2017 and the highest number of properties sold in a September for 14 years, “REINZ said.

The REINZ House Price Index for New Zealand, which measures the changing value of property on the market, rose 11.1% annually to 3,145, a new high and the first time the New Zealand index has exceeded the mark out of 3100.

The HPI for New Zealand excluding Auckland increased by 10.9 percent from September last year to 3105, a new record.

Auckland’s HPI rose 11.4 percent year-on-year to 3,194, also a new high in the index.

Norwell said the market “appears to continue on its trend of being an anomaly, with the number of properties sold highest in 42 months, since March 2017, when the country last experienced that growth.”

“Highlighting the amount of sales volumes across the country that continue to defy expectations, 13 regions had annual sales volume increases of more than 20% and 10 regions had increases of more than 30%, the most regions with this level of sales volume increase since April 2015 “.

“When you then add high levels of confidence in the housing market, the removal of LVRs in March, and people’s fear that prices will keep rising in the future, then this explains why people are doing their best to secure a property now, “he said.

Median home prices nationwide rose 14.7 percent annually from $ 675,000 to $ 685,000 last month.

The Auckland median rose 12.6 percent from $ 848,000 to $ 955,000, which is a new record, and rose from $ 949,500 in August.

The average number of days to sell nationwide decreased by four days, from 36 to 32, the lowest since March this year. Suppliers took three days less to sell in September, from 39 days a year ago to 36 days then, the lowest level in a September in four years.

Gisborne prices rose 45.8 percent annually, from $ 384,000 last year to $ 560,000 last month.

Taranaki prices have risen 21.3%, from $ 400,000 in September to $ 485,000 last month.

Otago saw a 20.7 percent increase from $ 489,000 to $ 590,000.

Bay of Plenty sales prices increased 17.8 percent from $ 602,000 to $ 709,000 and last month was the first time the median exceeded $ 700,000.

Manawatu / Wanganui prices increased 16.6 percent from $ 397,000 to $ 463,000 and the Whanganui district had a record median price of $ 400,000.

Wellington prices rose 13.1 percent from $ 650,000 to $ 735,000 and Lower Hutt City ($ 702,000), Upper Hutt City ($ 710,000), Wellington City ($ 862,000) and Kapiti Coast District ($ 704,400) were priced record media.

Waikato sales prices rose 14.4% annually, from $ 555,000 to $ 635,000, and Hamilton City ($ 676,000) and Taupo District ($ 630,000) posted record median prices.

Canterbury prices rose 11.1 percent, from $ 450,000 to $ 500,000. Christchurch City ($ 503,000), Kaikoura District ($ 595,000), and Timaru District ($ 392,000) also had record median prices.