Auckland, Canterbury driving prices: REINZ

Auckland and Canterbury/Westland are driving the increase in the national median house price, the Real Estate Institute says.

Tuesday, August 12th 2014, 12:00AM

by The Landlord

It has released its latest statistics, which show the 5893 homes sold in July was up 2.3% on June this year but down 13% on July last year.

The national median price was $416,000 for the month, down $11,250, or 2.6% on June but up $31,000 on July 2013.

Real estate chief executive Helen O’Sullivan said the market was “firmly in winter mode”, with low listings and muted activity across the country.

“Sales volumes picked up a little in July compared to last month but this is about in line with the normal seasonal pattern. Rising interest rates and the forthcoming election are probably also influencing buyer behaviour.”

She said there were reports from regional New Zealand that LVR restrictions were significantly affecting sales. “The reported lack of able buyers is filtering up the price points and on to vendor behaviour. In this context it is worth noting that Auckland and Canterbury/Westland accounted for more than 100% of the increase in the national median price between July this year and July last year, a further indication that the ‘national price’ is being driven by these two regions alone.”

Eighty-three per cent of the increase in the national median price compared to last July occurred in Auckland. Canterbury/Westland contributed another 19%. Year-on-year, Canterbury/Westland had the biggest median price increase, of 10.5%. It was followed by Auckland, with a 10.5% increase.

Eight regions reported an increase in sales volume in July compared to June. Hawkes Bay’s increase was the largest, at 22.1%. It was followed by Otago with 12.4% and Manawatu/Wanganui with 12%.

Compared to last year, nine regions had a decrease in sales volume. The largest fall was in Otago, where the number of sales dropped 20.8%.

While the total number of sales nationwide was down 13% compared to July 2013, the number of sales below $400,000 fell by 21.8%.

Canterbury/Westland recorded the largest increase in median price compared to July 2013, with an 11.1% increase, followed by Auckland with a 10.5% increase and Waikato/Bay of Plenty with a 5.8% increase. Compared to June, Southland recorded the largest increase in median price, up 4.2%, followed by Otago with 3.8% and Auckland with 1.7%.

« Healthy lifestyle property market: REINZ

Free Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers