The amount of properties sold in the $500,000 to $750,000 bracket increased from 29.9percent in December 2018 (1,672 possessions ) to 33.1percent in December 2019 (2,078 possessions ).
• Gisborne: -18.5% (from 54 to 44 — 10 fewer houses) — the lowest for the month of December in 5 years• Manawatu/Wanganui: -14.2% (from 351 to 301 — 50 fewer homes ) — the lowest for the month of December in five years• Hawke’s Bay: -1.4% (from 213 to 210 — 3 fewer houses).
In December the median number of days to market a property nationally decreased by 4 days from 35 to 31 when compared to December 2018 — the lowest days to market in 3 decades. This figure was 2 days fewer than November 2019’s figure of 33 days.
• Southland: -40.6% from 529 to 314 — 215 fewer properties• Marlborough: -33.1% from 366 to 245 — 121 fewer properties• West Coast: -29.7% from 461 to 324 — 137 fewer properties. Gisborne has the lowest number of weeks’ stock with 5 weeks stock available to potential purchasers — the equivalent lowest stock since records began.
Median house prices across New Zealand increased by 12.3percent in December to $629,000 up from $560,000 in December 2018 and just $1,000 off last month’s record of $630,000. Additionally, five regions saw new record median rates. Median home prices for New Zealand excluding Auckland increased by 11.5% to a record equivalent of $535,000, up from $480,000 in December last year, but the same price as November 2019.
In November, Southland again had the highest annual growth rate with a 20.6% increase to 3,292 a new record high. In second place was Manawatu/Wanganui with an annual growth of 19.2% to a new record high in 3,408 and in third position was Gisborne/Hawke’s Bay with a 13.8% annual increase to a new record high in 3,022 — only the second time Gisborne/Hawke’s Bay has gone over the 3,000 mark.
In Auckland, median house prices increased by 3.5percent to $890,000 — up from $860,000 at the exact same time last year — and has been the highest cost for the area in 33 months. These results are in keeping with the REINZ House Price Index (HPI) which saw land values in Auckland increase 4.0% yearly to a new record high of 2,931.
Bindi Norwell, Chief Executive at REINZ states:”The property market had a good end to the decade with a 12.3percent increase in the amount of properties sold in December 2019 compared to December 2018. That’s an additional 22 homes sold daily around the nation in December, which isn’t an insignificant number. With inadequate properties on the market to satisfy buyer demand, it indicates that buyers are becoming more definitive when it comes to purchasing as they are conscious of the need to move quickly on possessions and areas with higher demand. This is backed up by the decrease in the median number of days to market which is at its lowest point for 3 years.
Record median prices were recorded in:
North Shore City also saw a 7.1% annual uplift in median price, reaching $1,050,000 — the first time that the median has been over the million-dollar mark in four weeks.”
Northland had the greatest days to sell at 45 days, down 3 times on December 2018, and down two days on November 2019’s figure of 47. The West Coast had the second highest median days to sell across the country in 41 days — down 35 days on precisely the exact same time last year, and down 31 times on November 2019’s figure of 72.
“Looking around the country, 12 out of 16 areas saw annual increases in the number of properties sold — the maximum number of yearly increases in 3 months — with particularly strong increases in Auckland, the Bay of Plenty, Southland, Northland and Canterbury.”
The total number of properties available for sale nationwide decreased by -24.5% in December to 18,230 down from 24,158 in December 2018 — a decrease of 5,928 properties compared to 12 months ago and the lowest amount of inventory since records began.
The number of houses sold for under $500,000 across New Zealand fell from 41.6percent of the market (2,327 possessions ) in December 2018 to 31.9percent of the market (2,008 properties) in December 2019.
• Northland with a 12.3% increase to $539,000 up from $480,000 in precisely the same time last year• Manawatu/Wanganui with a 27.8% increase to $402,500 up from $315,000 in the exact same time last year• Taranaki with a 14.1% increase to $430,000 upwards from $377,000 in the same time last year• Tasman using a 12.5% increase to $655,000 up from $582,000 in the same time last year• Southland with a 32.0% increase to $330,000 up from $250,000 in the same time this past year.
Gisborne again had the highest proportion of sales by auction throughout the country with 47.7% (or 21 possessions ) from the area sold under the hammer — up from 35.2% (19 properties) in December 2018.
Days to Sell decreases both YOY and MOM
The West Coast had the highest number of week’s stock with 59 weeks’ inventory available to prospective purchasers — the highest in 14 months.
Regions outside Auckland with the highest percentage increase in annual sales volumes during December were:
The Auckland HPI increased by a strong 4.0% year-on-year to 2,931 a new record high and the second consecutive positive yearly growth in 15 months.
This was followed closely by Wellington with 6 weeks’ inventory and Hawke’s Bay with 7 weeks’ inventory available to potential purchasers.
Four regions saw decreases in annual sales volumes during December:
New Zealand rounded off the decade with the highest number of residential properties sold for the month of December in three decades and price rises in 15 out of 16 areas, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate property data in New Zealand.
Southland again had the lowest days to market of all the regions at 21 days, down two days from the same time last year, but 3 days greater than November 2019’s figure that was the lowest median days to sell since August 2007.
Auckland saw the second largest percentage of sales by auction with 27.7percent (515 properties) up from 18.7% in December 2018 (264 properties). The Bay of Plenty had the third greatest percentage of auctions in the nation with 13.3% (67 properties) sold under the hammerdown from 15.0percent (62 properties) in December 2018.
For New Zealand excluding Auckland, the median days to sell diminished by 4 days from 34 to 30 — the lowest days to market in 3 decades. Auckland saw the median number of days to sell a property collapse from 39 to 34 year-on-year — the lowest days to sell in 2 decades.
The REINZ House Price Index for New Zealand, which measures the changing value of land in the current market, increased 6.6% year-on-year to 2,915 — a new record high.
News from Real Estate Institute Of New Zealand
December saw 6 places with the median number of days to sell below the 28 mark, the maximum number of regions with land selling that quickly since April 2017.
“December saw 15 out of 16 regions with yearly increases in the median home price and 5 places with record median prices, reflecting the continuing reduction in residential property prices that we have seen for quite a few months now.
“Southland, Manawatu/Wanganui and Gisborne again saw really strong uplifts in cost, with demand for properties in these areas outstripping supply and adding to the premium people are ready to pay. There’s also likely to be an element of increasing vendor expectations adding to the price increases as month after month sellers in the area are reading stories of higher property prices,” continues Norwell.
Again, all areas across the country saw an annual decrease in total inventory levels, with the largest percentage decreases in:
• Taranaki: -47.3% from 649 to 342 — 307 fewer possessions and the lowest degree of inventory since records began
In Auckland, the amount of properties sold in December rose by 31.7% year-on-year (to 1,860 up from 1,412) — the highest number of residential properties sold in the month of December since December 2015.
Auctions were used in 14.1% of sales throughout the nation in December, with 883 properties selling under the hammer — up from the exact same time last year, when 10.5percent of properties (589) were sold via auction, but down on November 2019 when 16.8% (1,275) of sales were via auction.
In December, 10 out of 12 areas reached record high HPI levels; the only exceptions were Taranaki (+10.4%) and Canterbury (+2.9%) showing the overall strength of the property market.
At the top end of the market, the proportion of properties sold for $1 million or more increased from 13.0% (726 houses) in December 2018 to 16.5% (1,039 houses) at December 2019.
For New Zealand excluding Auckland, the number of properties sold increased by 5.8% when compared to the same time last year (to 4,425 up from 4,184) — the highest for the month of December in 3 decades.
The only region to experience an annual decrease in median price was the West Coast with a drop of -13.6percent from $220,000 in December 2018 to $190,000 in December 2019 — the lowest price in 3 months.
Wellington was a standout region in December, with four areas visiting new record median prices — Kapiti Coast District ($675,000), Masterton District ($477,000), Porirua City ($775,800) and South Wairarapa District ($625,000) revealing the continuing strength of the capital city’s property market.Porirua City