Auck­land house prices edge up

Reinz re­veals re­cent me­dian rise of $15,000

The New Zealand Herald - - NEWS - Anne Gib­son

Auck­land house prices have inched higher de­spite a wet win­ter, the elec­tion, po­lit­i­cal un­cer­tainty and lend­ing re­stric­tions.

Lat­est sales data from the Real Es­tate In­sti­tute of New Zealand (Reinz) showed me­dian prices for the re­gion rose $15,000 in the past two months.

Auck­land’s me­dian for July was $830,000, by Au­gust it was $835,000 and last month it was $845,000, Reinz said, re­flect­ing a wider picture of a grow­ing mar­ket through­out New Zealand.

Na­tion­ally, prices rose in al­most ev­ery re­gion and chief ex­ec­u­tive Bindi Nor­well said that was “ev­i­dence that the mar­ket con­tin­ues to grow de­spite some chal­leng­ing con­di­tions — in­clud­ing the LVR re­stric­tions and banks con­tin­u­ing to tighten lend­ing con­di­tions. Much of the in­crease has been driven by the buoy­ancy in the re­gions.”

Me­dian na­tional prices rose 1.2 per cent year-on-year to $525,000. Na­tion­ally, ex­clud­ing Auck­land, me­dian prices in­creased 5.7 per cent year-on-year and Auck­land me­dian prices re­mained flat at $845,000.

On a month-on-month ba­sis, Auck­land’s me­dian price in­creased by 1.2 per cent or by $10,000, Reinz said.

Six re­gions ex­pe­ri­enced dou­bledigit me­dian price in­creases in Septem­ber year-on-year: Tas­man up 19.3 per cent to $572,500, Hawke’s Bay up 18.3 per cent to $392,000, Gis­borne up 14.9 per cent to $270,000, North­land up 14.4 per cent to $446,000, Welling­ton up 10.6 per cent to $531,000 and South­land up 10 per cent to $220,000.

West Coast prices fell 15.6 per cent to $208,500 and Can­ter­bury was down 3.2 per cent to $426,000, Reinz said, com­par­ing last month to Septem­ber last year.

Na­tional sales vol­umes for Septem­ber fell 26.2 per cent year-on-year from 7352 to 5428, the low­est Septem­ber in six years.

On Tues­day, what has been seen to be a flat hous­ing mar­ket was cited as en­cour­ag­ing New Zealan­ders to shut their wal­lets. Sta­tis­tics NZ’s elec­tronic cards data was flat last month and an econ­o­mist said that was be­cause of cool­ing house prices.

“Con­sumer spend­ing has cooled sig­nif­i­cantly in re­cent months — in fact, the level of card spend­ing is down since the start of the year,” said West­pac chief econ­o­mist Michael Gor­don. “In the ab­sence of a re­newed fall in in­ter­est rates, we ex­pect the hous­ing mar­ket, and there­fore growth in con­sumer spend­ing, to re­main sub­dued over the next cou­ple of years.”

Last Wed­nes­day, Quotable Value showed Auck­land’s mar­ket had stalled in the past three months with val­ues fall­ing by 0.6 per cent and buy­ers un­able to get fi­nance be­ing blamed. The QV House Price In­dex showed the city’s prop­erty val­ues rose 0.8 per cent in the 12 months to Septem­ber 2017, the slow­est pace of an­nual growth since April 2011. De­spite the drop, the av­er­age value now stands at $1,039,066.

But a day later, Bar­foot & Thomp­son’s Septem­ber data showed a $40,000 leap in price. Bar­foot’s av­er­age sale price was $928,213 last month, up from $918,926 in Au­gust.

Auck­land house prices have climbed again de­spite po­lit­i­cal con­fu­sion and a rainy win­ter.

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