Auckland dominated other regions
The national median house price hit an all-time high last month, nearly 20% higher than a year earlier, according to the Real Estate Institute of New Zealand (REINZ).
Latest data from the REINZ revealed that the national median house price hit a new record high of $725,000 in October– with 10 regions and 28 districts seeing record median prices.
Auckland dominated the other regions with a median price increase of 16.3% from $860,000 in October 2019 to a new record high of $1 million last month.
Bindi Norwell, the chief executive of REINZ, said Auckland’s new record price meant October 2020 would go down in “housing history.”
“It’s something no-one anticipated or expected just six months after the entire country came out of lockdown. While this is a significant milestone, it raises serious questions around future affordability for Auckland residents wanting to get a foot on the property ladder,” Norwell said, as reported by Stuff.
“It also highlights just how important it is that legislation, such as the RMA, is readdressed quickly by the current government, so it is fit for purpose to help support more houses being built at speed and at scale.”
Read more: Average asking price soars in October
Norwell said the new record median prices show the impact of various factors on the market.
“Low interest and mortgage rates, the diversion of spend on overseas travel to property, ex-pats returning home, the removal of LVRs, and a fiercely competitive market due to the lack of listings has been contributing to price rises over the past few months,” she said.
“Given the price rises we’ve seen… we wouldn’t be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up – particularly for investors.”
The number of sales nationwide also increased by 25% last month compared to the same time last year from 7,063 to 8,830 – the highest number of properties sold in 53 months and the highest number of October sales since October 2006.
The number of properties sold in Auckland last month increased by 50.9% year-on-year from 2,081 to 3,140, the highest since March 2015 and the highest October sales volumes since October 2003. Meanwhile, Nelson is the only region that experienced a small annual decrease in sales volumes.
