Two-tier market as property in regions surges
New Zealand’s house prices are still growing strongly – except in Auckland and Christchurch.
Real Estate Institute data for January shows that prices in 14 of the country’s 16 regions rose compared with a year earlier.
The exceptions were Auckland, where the median price was down 2.4 per cent year-on-year to the lowest level since February 2016, and Canterbury, where the median price slipped 0.7 per cent.
Waikato, Manawatu¯ /Whanganui, Marlborough, Otago and Southland all experienced record median prices.
Gisborne’s median price was up 21.1 per cent, year-on-year, to $333,000.
‘‘January has pointed to a twotier market continuing around the country with Auckland and Canterbury experiencing a slowdown in price, but the rest of the country has seen strong price growth, including five regions achieving record median prices,’’ Real Estate Institute chief executive Bindi Norwell said.
‘‘This increase in price once again highlights how the lack of supply is continuing to push up house prices; therefore, it’s essential that as a country we address this fundamental issue sooner rather than later.
‘‘December and January usually see prices decline and then pick up again in February and March, so we’ll be watching closely to see whether this is just the usual Christmas/New Year slowdown or whether this is the start of something wider.’’
The 4372 homes sold nationwide in January was the lowest number in two years.
Brad Olsen, an economist at Infometrics, said he expected to see house prices fall over the next year as more supply became available in the regions and sellers reconsidered their asking prices to achieve a sale.
‘‘A large plunge in house sales in December has been followed by a less extreme drop in January, with total sales down by 2.5 per cent. January is usually a more subdued month, but the drop reinforces last month’s poor result.’’