Housing market hits record high

Photo: File
Photo: File
The property market continues to run hot, with the median house price in Canterbury increasing 13.1 per cent on this time last year to a record-breaking $526,000.

The national median price was also a record $749,000 in November. The new figure is an 18.5 per cent increase compared to the median price in November 2019 and a $24,000 increase on last month's median price.

The Real Estate Institute has released it Monthly Property Report and House Price Index for the month - and its chief executive Bindi Norwell says November was a stand-out for Canterbury.

“Canterbury reached a record median price in November of $526,000, up 13.1 per cent year-on-year," Norwell said. 

"Christchurch city and Waimakariri District also reached record median prices in November of $547,500 and $527,500 respectively. 

The House Price Index, which measures the changing value of property in the market, hit a new high in Canterbury and nationally.

"The REINZ House Price Index for Canterbury increased 9.8 per cent year-on-year to a record level of 2,798," Norwell said.  

"The Canterbury market has remained busy with a lot of first home buyers looking for property in the sub-$500,000 bracket.

"Investors are also busy, but at times are being beaten to the property by first home buyers.

"1,333 properties were sold in November 2020, an increase of 31.7 per cent from the same time last year and the highest level of sales for a November month since records began.”

Credit: REINZ
Credit: REINZ
Norwell said the number of properties sold across New Zealand in November was well up on last year.

"With just shy of 10,000 properties sold over 30 days. The last time we saw a similar level of sales volumes was back in March 2007 before the national recession and Global Financial Crisis started impacting New Zealand's property market."

She said this was likely driven by people wanting to purchase property before Christmas, the looming reinstatement of loan-to-value ratio restrictions and fears that prices would continue to rise.

The volume of properties sold was up 29.6 per cent year-on-year, with the West Coast market well above the national average with year-on-year volumes sold up 74.4 per cent.

Auckland, Northland, Bay of Plenty, Nelson and Waikato also saw strong volume increase.

As well as the national median hitting a record, 11 regions also saw new highs.

Bindi Norwell. Photo: Linda Robertson / ODT
Bindi Norwell. Photo: Linda Robertson / ODT
Tasman, Manawatu/Whanganui and Southland were the biggest gainers.

Norwell said the growth was clearly unsustainable.

"Since October 2011, we've seen successive annual increases in median house prices and the last five months have been double-digit increases.

"This just isn't sustainable and with data out earlier this week showing that the gap between those that own and those that rent is just going to keep growing unless we can do something to start addressing the supply issue the country has."

Properties also sold quicker in November, with median days to sell down by four days compared to November 2019 to 29 days. The quickest rate since March 2007.

Meanwhile, inventory levels remained stubbornly low with the total number of properties available down 16.9 per cent year-on-year.

That equated to 3730 less properties on the market than this time last year.

Read REINZ's Monthly Property Report  and House Price Index Report here.

- Additional reporting RNZ







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