Auckland median price hits new record

REINZ is reporting a noticeable increase in real estate market activity in October.

Thursday, November 13th 2014, 12:00AM

by The Landlord

It has released its latest statistics, showing there were 6608 dwelling sales in October. That was down 2.4% on 2013 but up 11.8% compared to September.

Eleven regions recorded an increase in sales volume compared to September with Otago recording the largest percentage increase of 28.8%, followed by Taranaki with 27.4% and Southland with 27.1%. Compared to October 2013 six regions recorded a increase in sales volume with Southland recording the largest increase of 10.3%, followed by Taranaki with an increase of 7.5% and Waikato/Bay of Plenty with an increase of 6.5%.

The national median price for the month was $430,000, up 5.4% from October 2013. Auckland's median reached a new record of $640,500.

Auckland recorded the largest percentage increase in median price compared to October 2013, with a 10.1% increase, followed by Manawatu/Wanganui with an 10.0% increase and Canterbury/Westland with an 8.5% increase. Compared to September 2014, Northland recorded the largest percentage increase in median price, up 13.9%, followed by Hawkes Bay with a 12.2% increase and Manawatu/Wanganui with a 7.5% increase.

Chief executive Helen O'Sullivan said the pick-up in activity had been marked."Activity has increased across the country, with the largest monthly sales increases in the South Island. We have also seen an increase in listings across most of the country, although in many places the number of listings remains below that of previous years."

But she said LVR restrictions were still having an impact.

“It has been 12 months since the Reserve Bank introduced its LVR restrictions on borrowers. Over the past 12 months the volume of sales has trended down, and still continues to fall. Provincial regions in particular are still seeing volume trends decline, with median prices in a number of regions at best remaining flat over the past five years. Only Auckland, Taranaki, Canterbury and Central Otago Lakes have seen their median prices rise faster than inflation over the past five years, with three regions, Northland, Hawkes Bay and Manawatu/Wanganui seeing their median prices fall in absolute terms. The increasing divergence between the two largest metropolitan areas, Auckland and Christchurch, and the rest of the country remains in place.”

Houses sold one day more quickly in October than in September, at 34 days. For the month of October, Canterbury/Westland recorded the shortest days to sell at 29 days, followed by Auckland at 31 days and Wellington at 32 days.

Nationally, 1369 homes sold at auction in the month. Homes worth more than $1 million made up 7.7% on sales in October this year, up from 6.4% last year.

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