Sales records in 325 suburbs smashed
Intense pressure in the housing market has led to price records being set in 325 suburbs around New Zealand in recentmonths, new data shows.
Property website Homes.co.nz analysed the last six months of sales and found that about a third of the country’s suburbs had hit records.
Homes.co.nz chief data scientist Tom Lintern said prices at the moment were as high as they had ever been.
‘‘A combination of low interest rates, low supply and a fear of missing out are driving prices to values that would have been unbelievable even a few months ago.’’
The results didn’t come as a big surprise given how the market had been trending, he said.
The most records were set in Dunedin, where 11 suburbs hit new highs.
Three Dunedin suburbs – Vauxhall, Waldronville and Bradford – set records of more than $1.4 million while prices in another three – Ocean View, Glenross and Tainui – topped $1m.
These prices were significantly above Homes.co.nz’s median estimate for the city, which was $568,000 in March.
Lintern said that, again, recent trends meant the Dunedin results were not a surprise.
‘‘It’s been a bit of a rock star market for some time, with growth of about 20 per cent per annum in recent years.
‘‘It came off a lower base than other major centres, but sale prices are now head and shoulders above what they were.’’
Dunedin real estate agent Joe Nidd, from Nidd Realty Ltd, said high numbers of people were moving back to Dunedin.
That was pushing the market along as there was immense competition among buyers.
‘‘Low interest rates are contributing to outlier offers which are way beyond the competition and which are surprising everyone,’’ he said.
‘‘It’s because people are desperate to secure a property after missing out previously and the relatively low finance available makes people feel more comfortable about paying higher prices.’’
Unless there was a significant change on the supply side prices would keep rising, Nidd said.
‘‘The Dunedin council’s secondgeneration district plan is progressing so there is change on the horizon, but any real increase in supply is a long way down the track yet.
‘‘Adding demand side measures, like the reinstatement of the LVRS, into the equation will just be a bump in the road and won’tmake much difference to the market.’’
The highest price paid in New Zealand in the past six months was $10.8m for a Paritai Drive address in Auckland in September.