House prices at record high
With demand outstripping supply, Taranaki has reached a record median house price.
The median jumped from $345,000 in September last year to $400,000 this year – a 15.9 per cent rise.
Taranaki was one of four regions, including Manawatu¯ / Whanganui, Southland and Hawke’s Bay, to reach a record price last month, new Real Estate Institute of New Zealand data revealed yesterday.
REINZ ambassador Gary Malcolm said the increase was due to a shortage of properties on the market right around the region.
‘‘It has been like that for the last 14 months in that price bracket, $650,000 down, and there is a big demand,’’ Malcolm said.
‘‘This increase is across the board, taking in the likes of Stratford, Ha¯ wera, Waitara, and there are similar things happening in New Plymouth.
‘‘I think it indicates that there are buyers out there wanting to buy but there is a shortage of properties.’’
Malcolm said there had been some big sales, of $1.5 to $2 million homes in New Plymouth, which could have contributed to the rise, but they were not the properties being sought after.
‘‘Generally you are finding that it’s the middle-to-low level, that’s where the demand is.
‘‘There are some good homes on the market but some of those will probably be in the over $550,000 price bracket.’’
The demand was resulting in multiple offers being made on properties below $500,000 and had buyers looking further afield than New Plymouth for suitable homes, he said.
The average sale time had remained consistent around 35 days. ‘‘They are not hanging around for too long.’’
Malcolm said spring was the time houses usually went on the market and he was hoping the supply would increase.
‘‘There’s generally quite a supply at this time of the year but that doesn’t seem to be as prevalent as it has been in previous years. We are still hopeful that there will be more properties for buyers to have a look at and have an opportunity to purchase.’’
REINZ chief executive Bindi Norwell said September had been a strong month price wise, which saw a record median price set nationally and increases in 13 of 16 regions.
‘‘Median prices are lifting as a result of a number of influences such as the Official Cash Rate (OCR) drop back in August, which is slowly injecting more confidence into the market and the continued lack of supply across many parts of the country,’’ Norwell said.
Nationally the number of properties sold increased by 3.3 per cent in September, to 5896, the highest number for the month in three years, she said.
‘‘This suggests that we’re starting to see the usual spring uplift and also that more confidence is starting to creep back.’’