Regions hot for house sales

Regional New Zealand was the star of the housing market in February, new Real Estate Insitute figures show.

Friday, March 11th 2016, 2:50PM

by Susan Edmunds

REINZ has released data showing there were 7291 sales last month, an increase of 5.7% compared to February 2015.

Excluding Auckland, the number of sales compared to February 2015 increased by 18% and on a seasonally-adjusted basis, total sales volumes increased 0.9% compared to February 2015.

The national median price was $450,000 for February, an increase of $20,000 or 4.7% on February 2015, and up 0.4% compared to the previous month, January. Excluding the impact of the Auckland region, the national median price rose $33,000 to $383,000 compared to February 2015.

Record median prices were reached in Waikato/Bay of Plenty, Hawke’s Bay and Wellington and Nelson/Marlborough.

Chief executive Colleen Milne said: “The REINZ data for February sales underlines the surge of activity in regional markets over the past six months with a number of regions recording strong increases in sales volumes compared to this time last year; the percentage rise of median prices rising ahead of the Auckland region; significant drops in the levels of inventory in the regions and, in a number of cases, noticeable drops in the number of days to sell.

“The Canterbury/Westland and Auckland region, which were previously the drivers of the national real estate market, are now playing ‘second fiddle’ to markets such as Waikato/Bay of Plenty, Hawke’s Bay and Central Otago Lakes. Other regions such as Wellington, Southland and Manawatu/Wanganui are also showing renewed vigour.”
Southland, Hawke’s Bay, Taranaki and Wellington all showed annual sales growth in excess of 25%. In contrast, Auckland saw the number of sales shrink by 18% compared to February 2015.

All regions recorded double digit increases in sales volumes compared to January despite the increased number of holidays compared to February last year. Compared to February 2015, 10 regions recorded increases in sales volume, with Southland recording the largest increase of 40%, followed by Hawke’s Bay with 35% and Taranaki with 29%.

Waikato/Bay of Plenty, Hawke’s Bay, Wellington, Nelson/Marlborough and “New Zealand excluding Auckland” each recorded new record median prices in February. Waikato/Bay of Plenty recorded the largest percentage increase in median price compared to February 2015, at 16.7%, followed by Hawke’s Bay at 14.0% and Central Otago Lakes at 13.7%. Auckland recorded the fifth largest increase in the median price at 11.1%. Southland recorded the largest percentage increase in median price compared to January, with a 16.2% increase, followed by Wellington, 14.5%, and Manawatu/Wanganui, 8.2% increas

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