Price hike in the North
With demand outstripping supply Northland’s house prices rose almost $1000 per week in the past year.
Figures released by the Real Estate Institute of New Zealand showed July’s Northland property sales set a new record median of $376,000 up $51,000 from the same time last year.
This equates to an increase of around 16 per cent and an increase on average of $980 per week over the past year.
Nationally Northland is one of four regions (including Auckland, Waikato/Bay of Plenty and Manawatu/Wanganui) to hit new record high median sales prices while the national medium increased 0.8 per cent for $505,000 from $500,000 at the same time last year.
Otamatea County lead the price upward charge in Northland with an increase of 45 per cent followed by Whangarei County at 39 per cent and Kerikeri 32 percent.
Meanwhile, properties offered for sale in the past year have halved with sales volumes down around 6 to 7 per cent because demand has been unable to keep up with supply for the Northland market.
‘‘Prices continue to rise in many regions, showing that while demand is still firm sales volumes remain below previous periods, as the continued shortage of supply impacts buyers, who are struggling to find properties to buy,’’ REINZ spokesperson Bryan Thomson says.
He says the Northland market remains active but REINZ will watch with interest the expected increase in listings numbers in the spring and the impact, if any, on the recently announced loan-tovalue ratio restrictions in the coming months.
Traditionally spring and summer attract more home sales listings.
The new LVRs will take effect on September 1 when property investors nationwide will need a 40 per cent deposit under the tough new restrictions.
Restrictions for owner-occupier lending remains at 20 per cent for at least 90 per cent of bank lending but has been extended nationwide.
The new rules are being urgently introduced in an attempt to put a lid on New Zealand’s spiralling property prices.