According to August figures from the REINZ, the Auckland property market has enjoyed its first year-on-year median price increase in six months, with a rise of 1.4% to $852,000 in August.
Spring came early for the New Zealand market as a whole, with a year-on-year median house price increase of 3.6% to $549,000.
If you exclude Auckland from this figure, the increase was even greater, with a 6.2% annual increase from $428,500 to $455,000.
There were only two regions that saw a fall in year-on-year median prices – Canterbury with a decrease of 0.5% to $425,000 and Southland with a decrease of 4% to $240,000.
August saw three regions achieve record median prices and two regions equal previous records: Gisborne increased 42.6% to $335,000, Tasman increased 24.2% to $615,000, Manawatu/Wanganui increased 10.5% to $315,000, Hawke’s Bay increased 9.9% to $445,000 (an equal record with March 2018) and Waikato increased 9.4% to $525,000 (an equal record with June 2018).
After six months of flat prices in Auckland it is positive to see an increase as we head towards spring.
Bindi Norwell, Chief Executive at REINZ says, “Above average temperatures for New Zealand in the final month of winter have had a positive impact on the real estate industry with prices increasing in 14 out of 16 regions across the country.”
“The middle of the North Island and top of the South Island continue to see strong prices achieved as low listing numbers continue to drive prices upwards in these popular areas. After six months of flat prices in Auckland it is positive to see an increase as we head towards spring.”
Turning to housing affordability and ASB Chief Economist Nick Tuffley says that building more houses is the key to improving conditions for first-home buyers, not banning foreign buyers.
He doubts the foreign buyer ban will have much impact and that the restrictions on domestic investors will play a more significant role.
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