Housing market soars: Auckland up 16.3% to $ 1 million, NZ prices up 19.8%


What would a further interest rate cut mean for mortgagees and buyers? OneRoof Need to Know host Frances Cook and Rupert Gough from Mortgage Lab explain.

The super-charged housing market in New Zealand has skyrocketed even further, with the Auckland median hitting $ 1 million for the first time.

National prices have also risen by nearly 20 percent in a year.

While the Reserve Bank is being tipped to reenter loan-to-value ratios to re-restrict lending, new data from the Real Estate Institute for October showed that Auckland home prices skyrocketed 16.3 percent annually from $ 860,000 to the new six-digit average.

The national median shot up 19.8 percent from $ 605,000 last year to $ 725,000 last month.

October will go down in housing market history as the point in time when the Auckland region’s average house price first hit the million dollar mark – something no one expected or expected just six months after the entire country left the lockdown came, ”said REINZ CEO Bindi Norwell.

Earlier this year, economists predicted that prices will fall by 6 to 9 percent by December or March next year.

Auckland’s median is $ 1,200,000, Manukau $ 1 million and the North Shore $ 1.15 million.

a roof

Norwell was concerned about Auckland prices: “While this is an important milestone, it raises serious questions about future affordability for Auckland residents looking to get a foot on the property ladder.”

Ten regions had record median price increases in October.

Gisborne prices rose 34.1 percent annually from $ 425,000 in October last year to $ 570,000 in October, Marlborough 26.8 percent from $ 445,500 to $ 565,000, Otago 22.7 percent from $ 532,000 to $ 652,500, Wellington 20.8 percent from $ 650,000 to $ 785,000, Manawatu / Wanganui 17.5 percent from $ 400,000 to $ 470,000, Northland 16.5 percent from $ 515,000 to $ 600,000, Bay of Plenty 16.2 percent from $ 620,000 to $ 720,500, Waikato 15.9 percent from $ 565,000 to $ 655,000 and Canterbury 9.7 percent from $ 465,000 to $ 510,000 in October.

Nationwide, agents sold the largest number of properties in 53 months. Annual volumes increased 25 percent from 7063 sales to 8830 sales. REINZ said this was the highest number of properties sold since May 2016 and the highest number of sales in October since October 2006, or in the last 14 years.

Norwell said, “The New Zealand housing market is extremely vibrant right now, with more than 8,800 properties sold across the country – that’s more than 283 properties sold every day in October. Last time we saw sales volumes of this magnitude , was in May 2016 when the market was very strong and prices rose in many parts of the country. “

The REINZ House Price Index for New Zealand, which measures changing values, rose 13.5 percent annually to 3,248, a new high for the index. The HPI for New Zealand excluding Auckland showed that house price values ​​had risen 12 percent between October 2019 to 3,203 – another new high.

Owen Vaughan, editor of NZME property site OneRoof.co.nz, said: “While listings are soaring, the sheer number of properties that have hit the market in recent months has not been enough to meet buyers’ demand, and the LVR Yesterday’s announcement by the Reserve Bank will only increase competition in an already intense market as investors have stepped up their game and that has put pressure on early home buyers in some areas.

Figures from OneRoof’s Property Report released at the beginning of the month show that home values ​​in most territorial authorities correspond to where they were at the start of the Covid crisis. Together with the latest data from REINZ, they outline an image of a booming property market. “

Source link