Aucklandhouse prices hit another record high
A drop in turnover has led to a slight easing in national median house prices but Auckland has hit another record high, data from the Real Estate Institute (REINZ) shows.
The national median price dropped $5000 from September to $510,000 in October. It was up 11 per cent year-on-year.
But four regions, including Auckland, reported record high median prices in the month.
Auckland’s median rose 16 per cent year-on-year to $868,000 – up $119,750 over the year.
That is up 5 per cent on September.
Northland, Waikato/Bay of Plenty and Southland also hit record median highs.
But the number of sales in the month was down 9 per cent from September to 6727. Yearon-year that was a 14 per cent drop nationally and a 16 per cent drop in Auckland.
REINZ spokesman Bryan Thomson said the lower end of the Auckland market was taking a hit from the loan-tovalue restrictions introduced recently.
Investors now have to have a 40 per cent deposit to buy.
‘‘[There has been] a surge in the percentage of sales over $1million and a noticeable decline in the number of sales below $400,000 compared to 12 months ago.
‘‘Some of this change may be reflective of the overall uplift in prices over the past year as the market for higher-priced properties is continuing as normal, but the market for lowerpriced properties is becoming more difficult for both buyers and sellers,’’ he said.
‘‘There is some evidence that the normal spring ‘bounce’ in the number of listings has so far been quite weak this year.
‘‘One possible reason for this is that the revised rules could be making it harder for people to know whether to sell, as they wonder if there are buyers about, so they hold their properties back from the market.
‘‘This could have the result that we’re seeing, which is that supply falls but the demand is still there, so prices keep rising.’’
QV national spokeswoman Andrea Rush agreed, saying earlier this month, that the latest round of LVR restrictions were beginning to have an effect.
However, the new build market remained strong throughout the country, as the LVR restrictions for investors did not apply to new homes, Rush said.
Hamilton and Bay of Plenty have reported turnover dropping by a quarter.