National house price up 6%: REINZ

A lack of listings is driving prices up around the country, according to the latest data from the Real Estate Institute.

Monday, October 8th 2012, 12:00AM 1 Comment

by The Landlord

Chief executive Helen O’Sullivan said the traditional spring rush of listings had not happened, prompting increases in median prices nationwide.

"Auckland continues to be the key region in terms of price increases and demand for housing, however, other regions are now starting to see pressure building with the median price in five regions within 10% of their record medians and the number of days to sell falling quite rapidly in some parts of the country."

REINZ data shows there were 5653 unconditional sales in September, an increase of 418 sales (+8%) compared with the same time last year and a fall of 6.3% compared to August.

The drop is unusual as September sales are usually stronger than August’s.

The national median house price increased by $1000 from $370,000 in August to $371,000 in September; an increase of 0.3%.

Auckland’s median house price moved up 1.9 % compared to August to a new record median price of $515,000. Nelson/Marlborough also reached a new record median price of $353,000. The national median house price is up 6% compared to September last year and is $1000 below the record median price set in June this year.

Eight regions recorded increases in sales volume compared to September last year, with Central Otago Lakes recording an increase of 25.9%, followed by Auckland with 17.4% and Waikato/Bay Of Plenty with 15.1%. Only two regions recorded increases in sales in September compared to August, with Otago recording a 12.8% increase and Central Otago Lakes a 7.4% increase. Taranaki recorded a 22.1% fall in sales in September compared to August, with Southland recording a 21.5% fall and Manawatu/Wanganui a 16.4% fall in sales.

For the month of September, Nelson/Marlborough recorded the highest lift in prices for the month with an increase of 7%, followed by Manawatu/Wanganui with 5.1%, and Wellington with 4.2%. Compared to September 2011, Southland recorded the highest lift in prices with an increase of 17%, followed by Central Otago Lakes with 14.4% and Auckland with 8.4%.

The national median days to sell improved by two days in September compared to August, from 35 to 33 days.

Since February this year the number of days to sell has fallen by 13 days, from 46 days in February to 33 days in September, with Taranaki and Southland regions seeing the number of days to sell over the same period fall by 22 days, Waikato/Bay Of Plenty seeing a fall of 21 days and Central Otago Lakes seeing a fall of 18 days. Auckland region saw a fall of eight days and Canterbury/Westland a fall of six days.

For the month of September, Canterbury/Westland and Southland recorded the shortest days to sell at 29 days, followed by Auckland with 30 and Otago with 32 days. Northland recorded the longest number of days to sell at 72 days, followed by Hawkes Bay with 46 days and Central Otago Lakes with 45 days.

Nationally there were 1128 dwellings sold by auction in September, 20% of all sales. This is a new national record for the percentage of sales by auction and beats the previous high of 18.4% reached in August 2012.

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