House prices hit record high – REINZ

Median house prices in New Zealand increased by 24.3% from $665,000 in March 2020 to $826,300 in March 2021 – a new record high, according to the Real Estate Institute of New Zealand (REINZ).

REINZ’s latest data revealed that 12 of 16 regions and 32 districts hit record median house prices, with those for New Zealand, excluding Auckland, recording a 23.6% increase from $550,000 in March 2020 to $680,000 last month.

Auckland’s median house price increased by 18.5% from $945,000 in March 2020 to $1,120,000 last month – a new record for the region. Additionally, Auckland City, Manukau City, North Shore City, Papakura District, and Rodney District reached new record median highs.

“March was another incredibly strong month from a price perspective with 12 regions and 32 districts across the country seeing record median prices. The national median also reached a new record, increasing by $46,300 since last month, showing just how much pressure has been placed on house prices and how we desperately need more supply to come to the market,” said REINZ acting chief executive Wendy Alexander.

Aside from Auckland, the other regions that hit record median prices were the following:

• Northland: 26.8% increase from $560,000 in March 2020 to $710,000 in March 2021. Whangarei also reached a new record median price ($723,000).
• Waikato: 22.7% increase from $595,000 in March 2020 to $730,000 in March 2021. Hamilton City ($780,000), Hauraki District ($590,000), Matamata/Piako District ($680,000), Waikato District ($720,000), and Waipa District ($801,000) also reached record median highs.
• Gisborne: 56.9% increase from $401,618 in March 2020 to $630,000 in March 2021.
• Hawke’s Bay: 30.5% increase from $545,000 in March 2020 to $711,000 in March 2021.
• Manawatu/Wanganui: 31.9% increase from $430,000 in March 2020 to $567,000 in March 2021 – the ninth record median price in a row. Horowhenua District ($575,000), Manawatu District ($565,000), Rangitikei District ($440,000), and Whanganui District ($521,000) also reached record median highs.
• Tasman: 19.6% increase from $670,000 in March 2020 to $801,000 in March 2021.
• Marlborough: 27.7% increase from $520,000 in March 2020 to $664,000 in March 2021.
• West Coast: 36.4% increase from $220,000 in March 2020 to $300,000 in March 2021 – the second record median price in a row. Grey District ($289,250) and Westland District ($405,000) were also record median highs.
• Canterbury: 17.8% increase from $488,000 in March 2020 to $575,000 in March 2021. Christchurch City ($600,000), Timaru District ($430,000), and Waimakariri District ($565,000) also reached record median highs in March.
• Otago: 30.8% increase from $535,000 in March 2020 to $700,000 in March 2021. Central Otago District ($770,000), Clutha District ($400,000), Dunedin City ($650,000), and Queenstown-Lakes District ($1,185,000) also reached record median highs.
• Southland: 12.2% increase from $370,000 in March 2020 to $415,000 in March 2021. Invercargill District also reached a record median high of $430,000.

REINZ also saw houses sold at their fastest pace in a March ever and the highest percentage of auctions the country has seen since the organisation began keeping records.

“Looking forward over the next couple of months, we would expect house prices to continue rising, but we hope this will be at a slower pace than we’ve seen over the last six to 12 months. Hopefully, the re-implementation of the LVRs, changes in government policy, and the move towards winter will slow the rate of growth down a little, but only time will tell what effect they will have,” Alexander said.