June 2019 Property Update
The June residential property sales data was released on 12/07/19. The heading for the data released was – Number of Properties Sold Nationally falls in June, but Prices Keep Rising!
Behind this statement lies a message. The message seems to be that many buyers are holding off hoping prices will fall. The probability however is that prices will keep rising. Why?
Firstly there is a housing shortage especially in major centres like Auckland. Secondly the population is growing due to both internal growth and by net migration.
The May Housing Market
During May across all of New Zealand house prices increased by 3.2% to $578,000 from $560,000 in May 2018. Median prices in Auckland increased by 1.2% from May 2018 and now sits at $860,000.
This is the highest Auckland median price in 2019. At the other end of the scale Gisborne property owners enjoyed a massive 54.4% median increase from May 2018 – May 2019!
Prices in Gisborne increased as a result from a median of $285,000 to $440,000. That was $2,645 a day for every day between the 1st of May 2018 and the 1st of May 2019.
Other strong growth areas were Southland (16.7%), Manawatu / Wanganui (14.4%), Hawkes Bay (9.3%) and Otago (8.2%). The number of properties sold in May was down 7.8% across New Zealand with Auckland the worst down 21.8%.
What is a LIM report?
A Land Information Memorandum (LIM) report is a summary report of some of the information held by the local council. The report covers one particular property only – land or house and land.
What is in a LIM report?
A LIM report contains information about such things as slippage and potential flooding risk by way of flooding plains. The presence of possible hazardous substances such as Asbestos or soil contamination by pesticides and insecticides.
The Housing Market April 2019
Over the whole of New Zealand house prices in April increased in 13 of the 16 regions compared to prices in March. The areas not seeing increases were Auckland, Nelson and Otago. Days to sell increased slightly from 36 days to 37 nationally.
Auckland increased by 4 days to 41 days to sell. What was noticeably down was the number of sales which year on year were down 11.5% nationally and 16.3% in Auckland. The recent fall in the official cash rate to a record low of 1.5% and the scrapping of the proposed capital gains tax should however give confidence to buyers.
Prices in January 2019
14 out of 16 regions of New Zealand had annual price increases in January. The only ones that did not were Auckland and Canterbury. The number of residential property sales were down year on year both in Auckland and Nationally. The warm sunny weather possibly meant would be buyers were at the beach instead.
House prices were up nationally in December 2018 by 1.5% compared to December 2017
The new median price is $560,000. Auckland also saw an increase but only 0.2% to a new median of $862,000. The Bay of Plenty was the star achiever for December with a new record median price of $610,000 which was a 2.0% increase.
Every region in New Zealand had a price increase in December which was the first time this has happened since June 2017 – 18 months ago. Auckland recorded the highest price for 9 months. For all those that think house prices are going to fall, take a look at this:
October 2018 House Prices
After the lowest level of sales for 8 months in September sales numbers rebounded in October and were around 15% higher than October 2017. This is what was predicted following the serge in listings that has come onto the market.
October was the month when the ban on foreign buyers came into effect. The median house price nationally was up 0.5% compared to September and in Auckland it was up 1.5% compared to September.
September 2018 House Price Sales
September recorded the lowest level of residential property sales for 8 months because of the low number of properties for sale. The numbers were down 3% compared to September 2017. As far as prices are concerned nationally they were up 5.9%. For Auckland prices were the same as September 2017.
While the numbers of sales nationally were down in 14 out of the 16 regions in New Zealand, prices were up compared to September 2017 and 4 regions set record median prices. The 4 were:
New House Price Records in August 2018
An early spring for house prices nationally with New Zealand prices up 3.6% year on year and Auckland up 1.4% year on year. After 6 months of flat prices the regions set new median price records in August.
Gisborne increased 42.6% in the last 12 months to a new record median of $335,000. Tasman up 24.2% in the last 12 months to a new record median of $615,000. Manawatu / Wanganui rose by 10.5% in the last 12 months to a new median record of $315,000.
July 2018 House Prices
In July house prices increased in every region of New Zealand except Auckland which fell marginally by 0.1%. The NZ median price increased to $550,000 and the median days to sell was 37. The Auckland median price is now $835,000 down $850 from June.
The REINZ house price index for New Zealand was up 4.9% from July 2017 and the index showed Auckland was up 1.6% from July 2017. New record prices were recorded in July for: