Northland median house value reaches $481,000
Northland property prices show no signs of abating, with latest figures showing the medians house value in the region hitting a record $481,000.
Real Estate Institute New Zealand (REINZ) chief executive Bindi Norwell said Northland, like other regions except Auckland, desperately needed to increase the supply of new homes to fill a significant shortage of properties.
Owners holding on to their properties longer and people moving to Northland are contributing to a shortage of houses either for rent or sale.
Northland was one of four regions with a record median price in July, REINZ figures show. The other regions were Taranaki (15.4 per cent to $375,000), Nelson (15.2 per cent to $547,000) and Marlborough (13.4 per cent to $453,500).
The median price in Northland of $481,000 last month was 5.7 per cent higher than July 2017 when it was $455,000. The increase throughout New Zealand was 6.2 per cent.
Whanga¯ rei property values contributed the bulk of the increase in Northland with a year-to-year jump of 6.9 per cent, from $452,000 to $483,000.
Prices in Kaipara, which include Mangawhai, fell 11.5 per cent during that period, down from $520,000 to $460,000. The Far North saw a modest increase from $455,000 to $470,000.
“The whole Northland region is experiencing an increase in demand because of a lack of inventory, higher demand and affordable houses compared with bigger centres, and Northland's a great place to live in as well,” Norwell said.
“But the key is to make sure there is enough supply to keep up with the demand, be that through Kiwibuild or from private developers and builders.”
The number of houses for sale in Northland last month dropped to 1201 compared with 1296 in July last year. There was also a drop in the number of houses sold during that period, from 192 dropping to 187.
Kerikeri, in particular, is seeing the highest rise in property prices in Northland. Median house prices there are creeping towards the $1 million mark.
The median house price in Kerikeri went up from $690,000 to $700,000, REINZ figures show.