The median house price for NZ, ex Auckland has jumped $680,000 in June 2021 - REINZ stats June 2021
Tuesday, 13 July 2021
Median prices for residential property across New Zealand increased by 28.7% from $637,000 in June 2020 to $820,000 in June 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
The median house price for New Zealand excluding Auckland increased by 25.9% from $540,000 in June last year to $680,000 in June 2021. Additionally, 5 out of 16 regions reached new record median prices, 1 region saw an equal record and 20 districts reached new record median highs.
Jen Baird, Chief Executive at REINZ says: “House price rises have continued to defy expectations with every region in the country seeing an uplift in median house prices when compared to the same time last year, and five regions seeing outright records in June. Even the month-on-month data has shown a slight uplift (+0.3% nationally), and more than half of the regions saw an uplift when compared to May suggesting that the market is refusing to cool.
“Once more, we’re seeing this story echoed by some very strong results in the REINZ House Price Index (HPI), which again reached a new high on the index. Every region saw an uplift in HPI values compared to the previous month – and the three months prior – suggesting that the market will hold strong for a few more months yet,” continues Baird. “Those buyers hoping for a bargain over winter might be disappointed, and today’s data really points to how important it is to address the housing supply issues we have,” she continues.
“We’ve talked about FONFA (the fear of not finding anything) before, but with less than 14,000 properties available for sale, this is becoming a real issue across parts of the country – especially when houses are selling as quickly as they are at the moment,” points out Baird. “Looking at the Auckland picture, we’ve seen another record median price and three districts reach new record medians showing how strong the Auckland market is,” she continues.
Regions with the largest increase in annual sales volumes during June were:
- Northland: +16.1% (from 174 to 202 - 28 more houses) - the highest for a June month in 5 years
- Taranaki: +9.6% (from 178 to 195 – 17 more houses) - the highest for a June month in 5 years
- Tasman: +7.8% (from 64 to 69 – 5 more houses) - the highest for a June month in 3 years
- Nelson: +2.7% (from 75 to 77 – 2 more houses)
- Canterbury: +7.8% (from 952 to 1,026 – 74 more houses) - the highest for a June month in 15 years
Regional Analysis - Auckland
“Median prices in Auckland reached a new record of $1,150,000, up 25.0% compared to June 2020. Rodney District, Manukau District and Waitakere District also reached record median prices of $1,194,000, $1,070,000 and 1,065,000 respectively. First home buyers remain active, especially in the ‘more affordable’ areas of the region even though the number of sub-$750,000 properties sold continues to fall. Investor activity varies from month to month depending on the number of available listings.
Auckland saw 2,766 residential property sales this month, up 29.0% annually and the highest level of June sales since June 2006. The expected winter slowdown hasn’t arrived yet, with open home attendance continuing to be busy. New listings decreased over the last month and are down on the same time last year with 3,081 new properties coming the market, compared to 3,559 in June last year. If new listings continue to be steady, the market is expected to continue at current levels.” (REINZ)
The current Days to Sell of 32 days is less than the 10-year average for June which is 37 days. There were 9 weeks of inventory in June 2021 which is 28 weeks less than the same time last year.
Regional Analysis - Northland
“In June, the Northland region saw a 32.6% increase in median house prices, reaching $700,000 when compared to the same time last year in part a result in the significant uplift in properties sold for over the $750,000 mark. Additionally, the Far North District saw a new record median house price of $730,000. Sales volumes increased 16.1% from June last year representing the busiest June month in 5 years. Stock levels continue to fall as we head into the winter months, with new listings down -24.9% annually and overall inventory down -47.7% year-on-year.
Auctions continue to be a popular method of sale with 27.2% of properties sold under the hammer. However, there are fewer numbers of people attending auctions which may be due to less buyers being in a cash position to bid or an increase in the number of conditional offers. The REINZ House Price Index for Northland increased 26.0% to a new record level of 3,841.” (REINZ)
The current Days to Sell of 37 days is much less than the 10-year average for June which is 59 days. There were 15 weeks of inventory in June 2021 which is 36 weeks less than the same time last year.
Regional Analysis - Waikato
“The Waikato market saw a record median house price of $736,000 in June 2021. Additionally, four of the 10 Waikato regions also saw record highs with Taupo District, Waikato District and Waitomo District beating their previous record last month, and Matamata-Piako District beating its previous record earlier this year in January 2021. The REINZ House Price Index for the Waikato region also reached a new record level in June, up 33.6% annually to 4,268.
First home buyers are still active in the market with many taking advantage of the decrease in investor activity. However, the lack of listings on the market has meant there is still competition for most properties. Auctions continue to be a popular method of sale, with 21.7% of all properties sold by auction. However, auction campaigns have been pushed out to 4-week campaigns rather than 3-week campaigns due to the increase in time that it currently takes for banks to approve lending.” (REINZ)
The current Days to Sell of 29 days is much less than the 10-year average for June which is 45 days. There were 6 weeks of inventory in June 2021 which is 24 weeks less than the same time last year.
Regional Analysis - Bay of Plenty
“The Bay of Plenty region saw median house prices increase 31.3% year-on-year to $840,000. The Western Bay of Plenty District reaching a new record median of $970,000, up from its previous record of $855,000 set in March 2021. This now makes it the most expensive district in the Bay having overtaken Tauranga City. New listings decreased annually by -15.7% to 467 – the lowest for a June month since records began. Median days to sell stayed at the same level as last month (31) but was the fastest for a June month since records began.
New listings continue attract a lot of interest as they come onto the market as overall inventory levels remains low, with only 7 weeks’ of total inventory available (726 properties). Prices remain above buyer expectations with competition for available properties continuing. Buyers are reluctant to list their property for sale unless they find something they want to buy first.” (REINZ)
The current Days to Sell of 31 days is much less than the 10-year average for June which is 50 days. There were 7 weeks of inventory in June 2021 which is 23 weeks less than the same time last year.
Regional Analysis - Gisborne
“In June, Gisborne saw median prices increase 37.5% to $605,000 in June 2021 from $440,000 in June 2020. While not a record, there was a 36.2 percentage point uplift in number of properties sold in excess of $750,000 when compared to the same time last year. The REINZ House Price Index for Gisborne/Hawke’s Bay increased 32.6% annually to 4,270 but it was the only region in the country to not be a new record on the index. Inventory increased 30.8% year-on-year – the only region to see an uplift. Sales volumes decreased -18.5% from 54 in June 2020 to 44 in June 2021 which was somewhat of a surprise given the uplift in new listings.
The typical winter trend and coming off an extremely busy period is likely the cause of a slowdown in sales. More buyers are taking their time and making sure they are making the right purchase, instead of being driven by the fear of missing out as evidenced by the slight increase in median days to sell compared to June 2020 – one of only two regions to see this.” (REINZ)
The current Days to Sell of 41 days is less than the 10-year average for June which is 43 days. There are 7 weeks of inventory in June 2021 which is 5 weeks less than the same time last year.
Regional Analysis - Hawke's Bay
“Hawke’s Bay saw median house prices increase in all four districts across the region. The median price rose annually 25.1% reaching $701,000 in June 2021 compared to $560,190 in June 2020. Additionally, the Central Hawke’s Bay District reached a new record median price at $595,000. The median price increase is likely due to the increase in the number of properties sold in the $1 million-plus bracket, increasing from 4.5% in June 2020 to 15.5% in June 2021.
More offers are conditional on finance, particularly for first home buyers. Attendees at open homes have increased from last month, however, there are less offers being presented. It is expected that the market will continue to perform similarly as winter sets in.” (REINZ)
The current Days to Sell of 30 days is less than the 10-year average for June which is 38 days. There were 6 weeks of inventory in June 2021 which is 11 weeks less than the same time last year.
Regional Analysis - Taranaki
“Median house prices in the Taranaki region reached a new record of $580,000, up 41.5% on the same time last year. The REINZ House Price Index for Taranaki reached a record of 4,253, up 34.5% year-on-year. Sales volumes also increased 9.6% year-on-year from 178 in June 2020 to 195 in June 2021. Listing numbers have decreased 10.9% annually, and total inventory has reached a low of 263 properties, a -26.3% decrease from June 2020.
Buyers are finding the lack of properties for sale is driving up prices as demand continues to outweigh availability of listings. The shortage of stock has also meant that there are less first home buyers and investors in the market looking to buy. The next few months are expected to have the usual winter slowdown, until activity picks up again in the Spring” (REINZ)
The current Days to Sell of 33 days is much less than the 10-year average for June which is 46 days. There were 8 weeks of inventory in June 2021 which is 8 weeks less than the same time last year.
Regional Analysis - Manawatu/Whanganui
“In June, the Manawatu/Whanganui region saw median house prices achieve an equal record of $580,000. Manawatu/Whanganui had 341 sales this month, a 14.0% increase on last month, but down -10.3% on the same time last year. Median days to sell also decreased 4 days from 31 days in June 2020 to 27 days in June 2021 – the fastest for a June month since records began.
There has been a slight decrease in the number of first home buyers in the market as prices have increased over the last 12 months. Investors have also decreased over the last couple of months with the recent government changes to the bright line test and Healthy Homes Standards. There have been fewer attendees at open homes compared to this time last year, but that is likely due to the usual winter slowdown." (REINZ)
The current Days to Sell of 27 days is much less than the 10-year average for June which is 42 days. There were 9 weeks of inventory in June 2021 which is 8 weeks less than the same time last year.
Regional Analysis - Wellington
“Wellington saw median house prices in the region increase 29.2% year-on-year to $885,000 in June 2021. Additionally, Carterton District ($740,000) and Lower Hutt City ($880,000) saw record prices in June 2021. The percentage of all properties that were sold for $1 million or more increased from 12.6% in June 2020 to 36.9% in June 2021. The REINZ House Price Index for Wellington reached a record level of 4,138, up 42.8% year-on-year, showing the strength of the region and that the underlying value of property is still increasing.
The lack of housing supply is also likely to be continuing to push up house prices with only 5 weeks inventory available down from 11 weeks at the same time last year. Sales volumes decreased 8.0% annually no doubt a result of the fall in total inventory (-14.4% when compared to June last year). Over the coming months, sales volumes should remain stable if more listings come onto the market but unless the supply issue is resolved, more pressure will be placed on prices.” (REINZ)
The current Days to Sell of 31 days is less than the 10-year average for June of 37 days. There were 5 weeks of inventory in June 2021 which is 6 weeks less than the same time last year.
Regional Analysis - Nelson/Marlborough
“The Nelson/Marlborough/Tasman regions all saw increases in their median house prices compared to June 2020, with Marlborough reaching a record median price of $705,000, up 56.0% annually. Nelson saw the median house price increase 15.3% and Tasman saw median prices increase 25.4% year-on-year. Sales volumes in the Tasman and Nelson region increased annually, with Tasman recording 69 sales, the most June sales since June 2018, while Nelson recorded 77 sales this month, the most June sales since June 2019.
Attendance at open homes has increased and is spread across most price brackets, regardless of the winter weather. Some buyers are looking to secure property in the region for future planning or those who have relocated to the region for work." (REINZ)
The current Days to Sell of 28 days is much less than the 10-year average for June which is 38 days. There were 9 weeks of inventory in June 2021 which is 21 weeks less than the same time last year.
Regional Analysis - West Coast
“The West Coast saw a 29.1% increase in median prices compared to the same time last year, reaching $284,000. Additionally, the Buller District reached a record price of $330,000, up 50.0% annually, beating the prior record of $300,000 set in June 2013. Sales volumes decreased slightly -3.8% year-on-year from 53 sales in June 2020 to 51 sales in June 2021. There has been a slight change in the demographics of some buyers, with an increase in the number of buyers at the top end of the market.
This has been reflected in the 6.0 percentage point increase in sales over the $500,000 mark. It is expected that the drivers responsible for this change, such as the impact of COVID-19 on the market, will continue to drive more buyers to the region.” (REINZ)
The current Days to Sell of 35 days is much less than the 10-year average for June which is 75 days. There were 13 weeks of inventory in June 2021 which is 42 weeks less than the same time last year.
Regional Analysis - Canterbury
“June saw Canterbury reaching a median house price of $569,000, up 21.1% on the same time last year. Additionally, Ashburton District ($415,000), Selwyn District ($686,000), Waimakariri District ($596,000) and Waimate District ($395,000) all saw record median prices in June 2021. The REINZ House Price Index also saw a record high of 3,258, up 26.3% from last year. Investor activity has quietened off over the last month due to the recent government announcements, but they are still present in the market.
First home buyers have been less prevalent in the market in the last couple of months, but activity is still busier than this time last year. Open home attendance is slightly down on last month which may be due to the usual winter slowdown, but it is expected to return in late Spring to pre-Christmas period.” (REINZ)
The current Days to Sell of 27 days is less than the 10-year average for June which is 35 days. There were 6 weeks of inventory in June 2021 which is 22 weeks less than the same time last year.
Regional Analysis - Otago
Dunedin City - "The median price in Dunedin increased 19.6% annually to $610,000 in June 2021, but has eased off from May’s record of $636,000. The number of properties sold decreased by 30.8% from 208 in June 2020 to 144 in June 2021 continuing the trend of lower turnover in the city. This is likely due to the shortage of available listings as well as some impact from the government’s investor rule changes.” (REINZ)
Queenstown Lakes - "Median house prices in the Queenstown-Lakes District increased to $1,063,750 up 14.4% when compared to June 2020. This is in part due to strong growth in Arrowtown and the Queenstown/Wakatipu Ward, and the low level of inventory across the district. Sales volumes for the Queenstown-Lakes District were strong, up 18.1% when compared to June 2020, and should continue to be steady over the winter months.” (REINZ)
The current Days to Sell of 34 days is less than the 10-year average for June which is 38 days. There were 8 weeks of inventory in June 2021 which is 10 weeks less than the same time last year.
Regional Analysis - Southland
“The Southland region saw a new record median house price of $420,000 in June 2021, up 23.2% from June 2020. Additionally, the REINZ House Price Index increased 24.2% annually, reaching 4,221. The increase in prices is likely due to the increase in the number of properties sold in the $500,000 plus price bracket, increasing from 10.3% in June 2020 to 31.9% in June 2021. On the other hand, sales volumes decreased -22.7% with 157 sales in June 2021 compared to 203 sales in June 2020. This is likely the result of a fall in both new listings and total inventory.
The market has been busy with more first home buyers looking to get onto the property ladder. There have been slightly less attendees at open homes, likely due to the usual winter slowdown. As we enter spring, we may see a resurgence of activity across the region." (REINZ)
The current Days to Sell of 25 days is much less than the 10-year average for June which is 38 days. There were 8 weeks of inventory in June 2021 which is 16 weeks less than the same time last year.
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