Otago ticked off several real estate milestones in March, as the median price reached a record, sales rose 29% compared to February and the number of days to sell improved by seven days.
The Real Estate Institute of New Zealand on Thursday launched its new REINZ House Price Index (HPI), developed in partnership with the Reserve Bank.
REINZ chief executive Bindi Norwell said the new HPI was the "gold standard" in New Zealand house price analysis tools.
The HPI took many aspects of market composition into account and provided more accurate results.
When applied to the March data, the HPI indicated the lift in the median price was driven by changes in the mix of dwellings sold in March compared to February.
While the median price went up $51,000 across New Zealand, the HPI was stable month-on-month, indicating more sales in higher price brackets than lower ones.
In Otago, which excludes the Central Otago Lakes district, the median price rose $40,000, up 14% compared with March 2016 - reaching a record high of $320,000.
Prices rose 24% in North Otago and 12% in Dunedin, but fell 8% in South Otago.
Compared to February, the median price rose by $2750, or 1%. Prices rose 10% in South Otago, 3% in North Otago and fell 2% in Dunedin.
Sales across the region rose 29% compared to February. Sales rose 60% in South Otago, 34% in Dunedin and 6% in North Otago. Compared to March 2016, sales fell 6%. Sales were steady in South Otago but fell 3% in North Otago and 7% in Dunedin.
The number of days to sell in Otago improved by seven days in March from 27 days in February to 20 days in March, the shortest number of days to sell in 14 years.
During March, 259 houses were sold in Dunedin, 57 in North Otago and 32 in South Otago. At the same time last year 383 houses were sold. Compared to March last year, the number of days to sell also improved by seven. In the past 10 years, the average number of days to sell in Otago in March was 32.
REINZ regional commentator Liz Nidd said there were 11 weeks of inventory across the region, a drop of 25% compared to March last year.
"The Otago market continues to be robust, with another record median price recorded this month and continued strong demand from out-of-town investors, particularly from Auckland."
First-home buyer activity remained steady, although the level of inventory continued to fall and was now at very low levels in the region, she said.
In Central Otago Lakes, the median price fell to $690,250 in March compared to $725,00 in February and $702,000 in March last year.
In March, 152 properties were sold: 88 in Central and 64 in Queenstown. The number of days to sell improved 16 days in March from 53 days in February to 37 days in March.
The Southland median price rose $15,000 to $225,000 in March from $210,000 in both February and March last year.
In the month, there were 203 sales, 122 in Invercargill, compared to 97 in February, and 40 in Gore, compared to 27 in February. Nationally, the median house price reached a record of $546,000, up 10% on the median of $495,000 in March last year, Ms Norwell said.
Eight of 12 regions reached record high median price sales. Others, apart from Otago, to reach highs were: Auckland, Northland, Waikato-Bay of Plenty, Hawke’s Bay, Manawatu, Taranaki and Canterbury-Westland.
The number of sales for March 2017 was 8504, up 36% on February but down 11% compared to March last year.
The number of properties available for sale continued to fall nationwide and there were 2397 fewer houses for sale in March compared to 12 months ago, she said.
The HPI numbers were backed by anecdotal evidence from around the country saying investors and home buyers were facing more challenges in securing bank lending compared to this time last year.
