New Zealand prices up but market still downRecent data for August shows that residential property prices in New Zealand increased 2.5% nationally.
The property markets of Auckland and Christchurch are continuing to strengthen, according to a report by the Real Estate Institute of New Zealand.
The national median house price increased 2.5% from $361,000 in July to $370,000 in August. This was up 4.2% from August 2011.
Auckland’s median house price, which has been on a steady level of $500,000 for three months, increased 1.1% to create a new record of $505,000. There were 6,035 unconditional sales in August, up 16.2% compared with the same time last year.
Auckland had an increase of 25.6% in sales volume, and recorded the highest rise in prices with an increase of 11.6%.
The REINZ Stratified House Price Index, which accounts for some of the variations that can impact on the median price, is up by 6.1% compared to August 2011.
REINZ chief executive Helen O’Sullivan said, “House buyers in Auckland are increasingly driving the New Zealand real estate market with a widening gap opening up between the dynamics of the Auckland market and the rest of the country.”
She stated that it is the strong sales volume growth in Auckland that is most notable.
“Normally at this time of year we see a dip in sales volumes,” she added.
However, she explains that despite the boom in Auckland, “in many parts of the country we are also seeing shortages of houses available for sale.”
“This increased level of activity does need to be seen in context of an overall housing market that is still subdued and with prices yet to catch up with increases in the consumer price index over the last five years. A sure sign that the housing market was back to normal levels of activity would be turnover reaching the pre 2008 long run average. This has yet to happen,” she added.