Otago house prices up by almost 20%

The number of houses sold in Otago has increased by half on the previous month as prices continue to show large increases on last year.

According to figures from the Real Estate Institute [REINZ] median house prices in Otago are up by 19.9% on a year ago — bringing them to $551,000.

A total of 386 properties were sold in February, up 51.4% on January’s 243 sales.

The region was also given a new high in REINZ’s house price index with a score of 3285, meaning house prices have increased by more than 200% since 2003.

Nationwide house prices hit a new record, up $80,000 within a year and REINZ chief executive Bindi Norwell said it was too soon to see any effects of covid-19.

National house prices rose from $560,000 last February to $640,000 last month and seven regions recorded new record medians.

"It's too soon to see any effects from COVID-19 on sales volumes, however, this is something we'll be keeping a close eye on over the coming months," said Bindi Norwell, referring to strong fundamentals including low-interest rates.

Even the previously sluggish Auckland market has fired up again, median prices up 4.3% from $851,000 a year ago to $888,000 last month. That was the highest Auckland price in more than four years.

"February was a very buoyant month from a price perspective with median price rises the largest the country has seen in 53 months and record median prices for New Zealand," Norwell said.

Sales volumes were also strong, up 9.2% annually from 6132 sales last year to 6694 last month, the highest in February in four years.

"February was a very buoyant month from a price perspective with median price rises the largest the country has seen in 53 months and record median prices for New Zealand," Norwell said.

Sales volumes were also strong, up 9.2% annually from 6132 sales last year to 6694 last month, the highest in February in four years.

Auckland volumes rose 41% from 1390 sales last February to 1968 last month, setting a five-year record, REINZ said.

The REINZ House Price Index for New Zealand, measuring changing values, increased 8.7% year-on-year to 3013 – a new record high. The index excluding Auckland increased 10.2% from February last year to 2995 another new record high.

The Auckland index increased by 6.9% year-on-year to 3035, the highest annual percentage increase in 35 months and the first time the Auckland region crossed the 3000 mark, REINZ said.

Norwell said Auckland volumes rose to an 88-month high. ll seven areas of Auckland enjoyed double-digit volume increases. The largest was Papakura with 83% rises annually.

Barfoot & Thompson also this month reported strong February Auckland sales at 804, also the highest in a February for five years but the average and median prices declined markedly in the past three months.

February's average was $920,553, down 3.3% on January. The median price at $820,000 was down 7.3% on that for January, the agency said.

"High new listings also contributed to a high number of sales. At 1640 new listings were excellent and this was a 50% increase on the average number for the previous three months," the agency said earlier this month.

By the end of February, the agency had 3670 properties for sale, 990 properties down on the same time last year.

Sales of properties in the $1m and $2m-plus categories during February were significantly ahead of last February and accounted for 30.8% of the sales total, the agency said.

With ODT