REINZ Wellington Region Property Market Analysis for November 2016

REINZ have today released their latest data. Median house prices and sales volumes have grown across New Zealand during November, according to the latest accurate real estate data.

capture10 of 12 regions in New Zealand hit new record high median sale prices in November 2016, with the national median price also reaching a new record median of $520,000, and all but two regions showed double-digit percentage growth.

Only Auckland and Central Otago Lakes did not post new record median prices. Auckland eased back from a record in October, and Central Otago Lakes median continued to ease following its rapid price increase earlier in the year.

The number of sales for November 2016 was 7,576, an increase of 13% on October. Sales volumes fell 6% compared to November 2015.  On a seasonally adjusted basis sales for November fell less than 1%.

Focusing on the Wellington Region and compared to October, sales volumes fell 1% across the region, with sales rising 1% in Upper Hutt and Hutt Valley, but falling 6% in Eastern Wellington. Compared to November 2015 sales volumes fell 20%, with sales falling 16% in Upper Hutt, 18% in Pukerua Bay/Tawa and 18% in Central Wellington.

On a seasonally adjusted basis sales fell 19% compared to October indicating that the fall in sales was far larger than normal. The median price for the Wellington region rose $65,000 (+15%) compared to November 2015 to reach a new record high. Prices rose 27% in Northern Wellington, 25% in Pukerua Bay / Tawa and 23% in Central Wellington.

Compared to October the median price rose $23,000 (+5%), with prices rising 23% in Pukerua Bay / Tawa, 22% in Central Wellington and 13% in Hutt Valley. On a seasonally adjusted basis the median price rose 1%.

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The trend in the median price is now improving, although the volume trend is now steady. The days to sell trend continues to rise with the overall trend for the Wellington region still improving.

The number of days to sell improved by one day in November, from 27 days in October to 26 days in November.

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Compared to November 2015 the number of days to sell improved by two days. Over the past 10 years the median number of days to sell across the region in November has averaged 32 days. The Wellington region has the lowest level of properties available, with eight weeks supply available, a drop of 30% over the past 12 months.

REINZ Regional Director Mark Coffey noted that, “First home buyers are becoming more active in the market, although the number of investors has fallen away with the introduction of the new LVR rules. The big question for the market is the impact of the Kaikoura earthquake and the flow on effect for insurance. The market may be a little subdued over the next few months as insurance and other post-quake issues are worked through.”

View the full report HERE

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