“The Bay of Plenty saw an increase in median prices, up 11% annually, reaching $665,000. Rotorua and Tauranga also achieved new record median house prices of $510,000 and $745,000 respectively. The REINZ House Price Index also reached a new high of 3,051 showing the continued strength in the region. Additionally, the number of sales increased 7.3% to 513, the highest sales count in August since August 2016. Days to sell were also down to 37 days, the lowest August days to sell since August 2016. Bay of Plenty also reached its lowest level of total inventory since records began (1,144). Vendor expectations in terms of price has increased compared to this time last year, likely due
to the lack of listings on the market. There are still reports that finance approvals from banks are taking longer than usual as they continue to be cautious with lending. It will be interesting to see how the market continues to perform over the coming months as we head into the election and into the end of the year.”
REINZ Regional Director
Compared to August 2019
- Median Price up 11.0%
- Sales Count up 7.3%
- Days to Sell decreased 5 days
Compared to July 2020
- Median Price up 0.8%
- Seasonally adjusted median
price up 0.9%
- Sales Count down 6.2%
- Seasonally adjusted sales count down 0.1%
- Days to Sell decreased 3 days.
The current Days to Sell of 37 days is much less than the 10-year average for August which is 47 days. There were 11 weeks of inventory in August 2020 which is 3 weeks less than the same time last year.
Median house prices for New Zealand excluding Auckland increased by 14.2% to a new record median price of $570,000, up from $499,000 in August last year and up from $557,500 in July this year.
Additionally, Auckland’s median house price increased by 16.0% to $950,000 a new record high up from $819,000 at the same time last year, and up from $918,097 in July this year (a 3.5% increase).
Over and above Auckland, 7 regions saw record median prices during August:
- Northland with a 16.6% increase to $590,000 up from $506,000 at the same time last year. Additionally, Whangarei District saw a record median price of $610,000
- Waikato with a 16.7% increase to $628,000 up from $538,000 at the same time last year, and the fourth record median price in a row. Additionally, 3 districts in the Waikato region saw record median prices – Matamata-Piako District ($587,000), Otorohanga District ($418,500) and Waipa District ($715,000)
- Manawatu/Wanganui with a 15.1% increase to $450,000 up from $391,000 at the same time last year. Additionally, 3 Districts within the Manawatu/Wanganui region saw record median prices – Tararua ($320,000), Manawatu ($535,000) and Whanganui ($375,000)
- Taranaki with a 15.3% increase to $451,000 up from $391,000 at the same time last year
- Canterbury with a 13.0% increase to $497,000 up from $440,000 at the same time last year. Additionally, 2 Districts within the Canterbury region saw record median prices
– Ashburton District ($391,500) and Waimakariri District ($515,000)
- Otago with a 17.2% increase to $580,000 up from $495,000 at the same time last year
- Southland with a 20.3% increase to $373,000 up from $310,000 at the same time last year.
Bindi Norwell, Chief Executive at REINZ says: “For the last few weeks we’ve been hearing reports from around the country of vendors achieving good prices for the sale of their homes; but we would never have guessed that 8 regions and 17 Districts/Cities across the country would see record median prices just 4 months after the entire country was in lockdown. The housing market’s recovery post-lockdown over the last few months has been astonishing and has certainly surpassed many predictions.
“August saw record median prices in Rotorua District ($510,000), Tauranga City ($745,000), Lower Hutt City ($670,000), Upper Hutt City ($663,200), Papakura District ($775,000), Rodney District ($961,000) and Waitakere City ($890,000),” continues Norwell.
“At this point last year, the Hawke’s Bay region had not had a median price over the $500,000 mark and now the region is extremely close to exceeding the $600,000 median mark. It’s a similar picture in Otago, where the region had only seen one month with a median price over the $500,000 mark and now, it’s closer to the $600,000 mark than the $500,000 mark,” she continues.
“The combination of low interest rates, the removal of LVRs,
the lack of listings, people’s aspiration to have more space/a bigger backyard, catch up post lockdown and first time buyers’ desire to get onto the market have all contributed to the uplift in prices we’ve seen over the last few months. Unless we see more listings come to the market before Christmas, we may start to see additional pressure on house prices and affordability,” points out Norwell.