More growth in house sales, prices
The top of the south has joined the regions experiencing an increase in median house prices, according to figures released this week.
Median house prices across New Zealand increased by 8.2 per cent in October to a new record high of $607,500, up from $561,500 in October 2018.
It is the first time the median house price for the country has crept over the $600,000 mark, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
Record median prices were recorded in Northland, Waikato, Bay of Plenty, Hawke’s Bay, Manawatu/Wanganui and Otago, while the only region to experience an annual decrease was Taranaki, with a marginal fall of -0.5 per cent, from $392,000 in October 2018 to $390,000 in October this year.
‘‘October was a strong month price-wise, with record median prices recorded in six regions and a record equal in Canterbury. This is the highest number of regional record prices we’ve seen for the country in 23 months,’’ said REINZ chief executive Bindi Norwell.
Residential property data for October 2019 showed Nelson City’s median house price rising by 11 per cent in the last 12 months, from $518,000 to $575,000, and up 2.7 per cent since September.
The number of houses sold in Nelson over the past month increased 50.8 per cent, from 65 to 98.
Tasman District experienced a 1.6 per cent annual increase in its median price, climbing to $620,000 from $610,000 in October 2018. However, this was down on the $630,000 median price recorded for September 2019.
Marlborough also experienced an increase in its annual median price, up 16.5 per cent on the $382,500 recorded in October 2018 to hit $445,500. However, as with Tasman, the region experienced a drop on the previous month’s median of $464,098.
Sales in Marlborough were down annually by 28.7 per cent, and total inventory was now at 269 properties. New listings in the region recorded the highest decrease in the country in October, with only 100, down 35.9 per cent year-on-year.
The lack of listings in the area had resulted in multiple offers for properties and had pushed auctions forward, which was likely to be pushing up prices in the region, Norwell said.
On the flipside, Nelson and Tasman experienced positive sales volume increases, with Tasman recording a 19.4 per cent increase and Nelson recording a 16.7 per cent increase compared to the same time last year.
This placed them second and third in the country, respectively, just behind Bay of Plenty on 20.2 per cent.
‘‘Anecdotally, we have seen many vendors challenging the Nelson City Council RVs from September 2019,’’ Norwell said.
‘‘RVs are actively used by buyers in the Nelson region as a price guide, and as such, vendors are looking for more value in their properties. New homes in some developments are slowing due to availability, which is putting pressure on the existing housing supply that is available.
‘‘We should continue to see listings remain tight, and supply and demand will remain positive for vendors for now.’’
The REINZ report noted that the median price trend for the Nelson, Tasman and Marlborough region had been climbing over the past 11⁄2 years but had flattened over the past few months. The sales volume trend has been increasing slightly over the past four months, while the days-to-sell trend has been easing over the past two years.
The current average number of days for a property to sell – 29 – was less than the 10-year average for October of 34 days.
‘‘Vendors are looking for more value in their properties . . . We should continue to see listings remain tight.’’ Bindi Norwell, REINZ chief executive