Auckland's median house price now $1.3m, rest of NZ surges to $925,000

Author
Anne Gibson, NZ Herald,
Publish Date
Mon, 13 Dec 2021, 9:44AM
(Photo / File)
(Photo / File)

Auckland's median house price now $1.3m, rest of NZ surges to $925,000

Author
Anne Gibson, NZ Herald,
Publish Date
Mon, 13 Dec 2021, 9:44AM

National house prices have hit a new record $925,000, up 23.8 per cent annually, begging the question about when the $1 million threshold might be reached.

Real Estate Institute data out today showed despite predictions of its demise, the housing market continues to prove critics wrong by breaking the records.

National prices shot from $747,000 last November to $925,000 last month.

Auckland's median rose 26 per cent annually from $1,030,000 last November to $1.3m last month - another record median.

Of the 24 territorial authorities with median prices, a quarter were in Auckland.

All seven Auckland districts had median price increases and six reached median highs, with only the Franklin District not included in that.

Jen Baird, REINZ, chief executive, said: "The market has settled back into its stride, returning to business as near-usual. November shows an active market where property prices continue to increase, stimulated by demand as New Zealand prepared to leave alert levels behind.

"We're seeing a firm property market, with all regions experiencing annual growth and 24 territorial authorities reaching new record medians.

"While the supply versus demand imbalance continues to push prices up, across New Zealand inventory levels increased 5.1 per cent annually and listings increased 9 per cent, providing buyers more choice and giving reluctant sellers confidence that if they take their current property to market, they will be able to buy their next one.

But she cited Government measures to cool the market, the Reserve Bank's OCR increases and banks tighter lending criteria.

The number of sales fell 18 per cent annually, from 10,220 last November to 8381 last month. However, this volume is 12.4 per cent up on last month and the second-highest number of sales in a November month since 2006.

The national median rose 3.7 per cent from October to November, from $892,000 to $925,000.

Auckland's monthly median rise was 4.4 per cent from $1.24m to $1.3m.

Auckland, Canterbury, Manawatu-Whanganui, Nelson, Otago, Southland, Waikato and Wellington all had their highest sales count since April.

In Auckland, the number of properties sold decreased by 19.6 per cent annually — from 3857 to 3102.

The REINZ House Price Index, which measures the changing value of all residential property, showed an increase of 27.2 per cent annually to 4281 which is a new high.

This is now the sixteenth consecutive month of a new high.

the Reserve Bank Te Pūtea Matua says house prices are above their sustainable level.

Governor Adrian Orr says they are above a level that is sustainable given the outlook for the supply of, and demand for, housing.

"The key drivers of housing supply and demand have turned around," he said.

The underlying demand for housing has declined significantly due to low population growth since the outbreak of Covid-19 last year. At the same time, house building is at record high levels and mortgage interest rates are rising," Orr said in August.

"We expect house price inflation to moderate significantly in the period ahead. In our projections, house prices are assumed to eventually fall as momentum in the housing market fades," he said.