Median house prices hit record high for the fourth month in a row
The lack of properties for sale is putting pressure on house prices, with the country seeing a new record median house price for the fourth month in a row, according to the Real Estate Institute of New Zealand (REINZ).
Housing stock hit a record low across New Zealand in December despite a year-on-year 19.2% increase in new listings, according to realestate.co.nz.
Meanwhile, REINZ revealed that median house prices increased by 19.3% from $628,000 in December 2019 to a new record median price of $749,000 in December 2020.
“For the fourth month in a row, New Zealand has seen house prices reach a new record, with December seeing a new national median house price of $749,000. Additionally, 11 regions and 27 districts saw record-high median prices – a continuation of the pattern we’ve seen in the housing market for the last few months – highlighting how strong the residential housing market is in all parts of the country,” said REINZ chief executive Bindi Norwell.
Norwell said the lack of supply put pressure on house prices in most parts of New Zealand, and the record-low interest rates pushed many people to compete to secure the property they want.
“This lack of choice and high levels of confidence is also causing properties to be sold at the quickest pace we’ve seen in 17 years. The median number of days to sell a house is now just 27 days, showing how people are moving quickly to secure ‘good’ properties,” she said.
“Today’s figures further highlight that we urgently need a combined response from the government and industry to solve the housing affordability issues the country is facing.”
