Housing market continues to bubble

The latest Real Restate Institute figures show that 9,932 homes worth $2.39 billion changed hands in November. That compares with the 9,448 homes worth $2.23 billion sold in October.

This was still less than the more than 10,000 homes which changed hands in February and March 1996.

Nevertheless, the median house price jumped 3.7% from its $188,000 level in October and was 10.7% higher than the $176,200 median house price in November last year.

"November is always a peak selling month during the year. With the current stability in the economy and mortgage rates for the foreseeable future, people have more confidence when buying property," says institute president Graeme Woodley.

All but one region, Northland, recorded increases in median price during November. Wellington recorded the largest increase – up to $222,000 from the $205,137 median price of October.

Eight of the 11 regions also recorded higher sales during November with Wellington again showing the largest increase, up 135 to 1,213 from October.

Nelson/Marlborough and Southland regions also reported record sales in November.

Sales continued at strong levels in Auckland, rising from 3,392 in October to 3,450 in November. That compared with 2,706 homes sold in November last year. Auckland’s median house price rose from $245,000 in November last year and $279,000 in October to $280,000 in November.

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