Sharechat Logo

NZ median house price rises 6.7% in May; activity slows, REINZ says

Wednesday 14th June 2017

Text too small?

New Zealand's median house price rose an annual 6.7 percent in May, with four regions recording new records, although activity slowed, according to the Real Estate Institute.

The national median house price increased to $540,000 in May from $506,100 in May last year, the institute said. It was unchanged from April. Sales volumes fell 18 percent compared with a year ago, and the median number of days it took to sell a home increased to 37 days from 32 days.

Record migration and low interest rates have bolstered the country's housing market, prompting the central bank to tighten up lending rules to reduce the risk to the nation's financial stability. In Auckland, the country's largest city where rising prices have made housing unaffordable for many, the median price rose an annual 5 percent to $865,000, compared with an annual pace of 8.4 percent a year ago, while sales volumes dropped 28 percent.

'We are seeing a continuing trend of strong median house price growth in many of the regions year-on-year, however a lack of inventory continues," said institute chief executive Bindi Norwell. "Given the considerable mismatch between population growth, increasing immigration figures, low interest rates, high housing demand and low building consents and housing supply, it's clear why prices are still rising – although at single rather than double-digit growth levels."

Regions which hit a new record median price in the month include Northland ($450,000), Manawatu/Wanganui ($269,000), Nelson/Marlborough ($483,250), and Southland ($238,000).

Nationwide, the number of properties available for sale fell 14 percent compared with May last year, although in Auckland properties for sale jumped 47 percent.

The number of properties sold by auction, which is often an indicator of a heated market, declined 52 percent to 956 across the country. Auctions accounted for 13 percent of total property sales, down from 22 percent a year earlier. In Auckland, just 536 properties were sold by auction in May, down from 1,277 a year ago.

Norwell said buyers were more cautious heading into winter which typically sees a slowdown in activity. Other factors impacting the market included that it is an election year, political uncertainty in some of our traditional trading markets and that first-time buyers are finding access to capital more difficult, she said.

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake
18th September 2019 Morning Report
Dairy product prices advance, bolstered by milk powders
MARKET CLOSE: NZ shares gain: F&P Healthcare rallies on big volume, Synlait extends gain
NZ dollar mixed after RBA says its ready to cut rate if necessary
OMV granted marine discharge consent for Great South Basin
More detail needed on migrant worker policy, big employer says
Briscoe Group says outlook uncertain

IRG See IRG research reports