Summer 2017
Prices rise in every region in NZ, except Auckland and Nelson - leading to record price for NZ ex-Auckland Prices rose in 14 of New Zealand’s 16 regions for the year to October, leading to the median house price for New Zealand, excluding Auckland, to reach a record price of $440,000 (an 8.5% increase), according to the latest data from the Real Estate Institute of New Zealand (REINZ) – source of the most complete and accurate real estate data in New Zealand. Contributing to the increase were record prices in four regions: Waikato - up 9.9% to $500,000
Manawatu/Wanganui - up 11.5% to $290,000
Canterbury - up 4.7% to $450,000
Otago - up 14.4% to $412,000
We try harder.
Nationally, the median price rose by 3.9% year on year to $530,000. However, median prices in Auckland fell by 3.2% year on year to $850,000 – the biggest fall since December 2010. The only other region across the country to experience a fall in the median price year-on-year, was Nelson, which saw a decrease of 6.8% to $447,500 – the biggest drop since April 2012. Bindi Norwell, CEO at REINZ says: “As we’ve seen for some months now, prices across the country have continued to increase, albeit at a slower rate than the increases we’ve seen in some regions for the last couple of years. Waikato is now the sixth region in the country to have exceeded the half a million dollar mark at least once – something, that a few months ago, we predicted would happen shortly. “The Auckland Region’s decrease of 3.2% year-on-year is predominantly the result of a large number of apartments being sold in the old Auckland City boundary which has therefore brought the median price down for the entire region. Auckland City’s median fell by 17% to $850,000 the lowest price it’s been for 16 months. Interestingly, Franklin District prices increased 16% year-on-year to $737,000 and North Shore City remains New Zealand’s only million-dollar plus city,” she continues. “Looking at the REINZ House Price Index (HPI) for the legacy Auckland City it only decreased 0.8% year-on-year, whereas the median for the same period fell by 17%, highlighting that the drop in median price is not as dramatic as a fi rst glance would suggest. This is because the HPI considers the mix and value of the property sold, not just the sales price,” points out Norwell. Volumes still down, but showing signs of life The number of properties sold across New Zealand was down 16% year-on-year to 5,689. Volumes for New Zealand, excluding Auckland, were down 14% year-on-year to 4,057 and Auckland’s sales count was down 21% to 1,632. Other regions with the biggest drop in volumes year-on-year were: West Coast - down 31%
Manawatu/Wanganui - down 24%
Northland - down 21%
Bay of Plenty - down 21%
“For the last three months, not a single region in New Zealand experienced an increase in sales volumes year-on-year, however, this month we’ve seen two regions Gisborne and Southland with an increase (up 8% and 1% respectively) suggesting that we’re starting to see the traditional spring increase finally kick in. This picture is even more apparent on a monthon-month basis, as 8 out of 16 (or half) of the regions across New Zealand experienced an increase in volumes. On a month-on-month basis, volumes were up 45% in Marlborough, up 18% in Wellington and up 7% in Nelson. “However, it’s clear that the volume of properties sold across the country is still significantly lower than it was this time last year. Therefore, we welcome the Reserve Bank’s comments last week that they will make an announcement later this month around reviewing the restrictions and the criteria that they would adopt for the removal of LVRs. This data is evidence that the LVR restrictions have done their job of slowing the market, which is why REINZ has repeatedly called for LVRs to be reviewed for first time buyers,” continues Norwell.
“ We’ll go to great lengths to sell your home for more, in less time and with lower fees.” 0800 000 525 www.mikepero.com
What’s Happening
$525,000
in the Market?
The median price trend continues to flatten, with the sales volume trend decreasing notably. The days to sell trend has moved up to easing slightly. The House Price Index remains quite flat, with slight negative 3 month and 12 month movements.
T
he median price increased $20,000 (+5%) compared to October 2016. The Waimakariri District was the only Canterbury TA to have a decrease in median price (-3%) with the biggest increases happening in Mackenzie (+27%) and Hurunui (+20%). Compared to September the median price increased $17,500 (+4%), with Hurunui, Ashburton and Mackenzie having the largest increases with +21%, +18% and +16% respectively. On a seasonally adjusted basis the median price increased 4% compared to September, indicating that the increase in the median price was larger than expected at this time of year.
The number of days to sell improved
Sales volume across the region fell 9% compared to October 2016, with sales volume falling furthest in Mackenzie (-56%), Hurunui (-22%) and Ashburton (-18%). Compared to September, sales count decreased 3%, with sales decreasing most in Mackenzie (-20%), Hurunui (-7%) and Timaru (-6%). On a seasonally adjusted basis, volumes decreased 3% compared to September indicating that the decrease in sales was slightly greater than would be expected moving from September to October.
of stock seems to be coming in. The
by two days in October from 35 days in September to 33 days in October. Compared to October 2016 the number of days to sell eased by one day. Over
Auckland
$845,000
averaged 32 days. There were 21 weeks
Waikato
$480,000
of inventory available in October, an
Bay of Plenty
$547,500
Gisborne
$270,000
Hawke’s Bay
$392,000
says ““Vendors are recognising that
Manawatu/Wanganui
$271,000
there is slower activity affecting the
Taranaki
Canterbury market, although plenty
Wellington
$531,000
Nelson
$481,000
a breather and that there is a degree
Marlborough
$396,000
of uncertainty. Having said that, there
Tasman
$572,500
can still be some exceptional sales
West Coast
$208,500
Canterbury
$426,000
choice and can afford to wait. Over the
Otago
$397,000
next few months it is likely to be a slow,
Southland
$220,000
NZ excluding Auckland
$428,000
NEW ZEALAND TOTAL
$525,000
increase of six weeks compared to October 2016. REINZ Regional Director, Jim Davis,
market still feels as though it is taking
achieved with multiple interest, but with good stock levels buyers have
but steady market, with minimal rush up until Christmas – in fact, we expect it to be tight and tough.”
$360,000
The REINZ House Price Index shows:
$450,000 $460,000 $425,000 $455,000
Christchurch City
Selwyn District
“Prices across the country increased in all but three regions, evidence that the market continues to grow despite some challenging conditions including the LVR restrictions and banks continuing to tighten lending conditions. Much of the increase has been driven by the buoyancy in the regions,” says Bindi Norwell, REINZ CEO at REINZ.
to sell in October across the region has
Hurunui District
Ashburton District
Residential property prices across New Zealand increased by 1.2% year-on-year to $525,000. Nationally, excluding Auckland, median prices increase 5.7% year-on-year and Auckland median prices remained flat at $845,000.
$446,000
CANTERBURY REGION
Timaru District
National Median House Price
Northland
the past 10 years the number of days
Median Price Breakdown - October 2017
Waimakariri District
34
Median days to sell in SEPTEMBER
$347,500 $365,000 $565,000
National
+2.1% on Sept 2016
National ex Auckland
+7.0% on Sept 2016
Auckland
-0.7% on Sept 2016
National
+0.7% on Aug 2017
National ex Auckland
+0.8% on Aug 2017
Auckland
+0.7% on Aug 2017
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi
Source: REINZ
Outdoor Oasis
With the promise of summer, and the festive season just around the corner, it is time to maximise the potential of your outdoor area. By Mike Pero, Chief Executive, Mike Pero Real Estate
Whether you have a porch, patio or pool, there’s plenty you can do to improve your outdoor experience at home and add value when it comes time to sell.
TAKE A SEAT It is time to liberate your outdoor furniture from storage, and make any necessary repairs to torn upholstery and treat fading wooden pieces to a moisturising coat of oil. If your outdoor furniture has seen better days, it may be time to give yourself an early Christmas gift and invest in a new set. Think carefully about how you use your outdoor areas. Consider a table and chairs for al fresco dining, sun loungers for beside the pool, outdoor bean bags made from quality nautical fabric, and occasional stools and coffee tables for relaxing in the shade. Then consider the various configurations that best allow for high traffic areas, and designate different zones with an outdoor rug.
CLEAR THE DECKS Attending to maintenance at the beginning of the season will stand you in good stead for the rest of summer so you can fully enjoy the good life at home. If you have a timber deck or porch,
Keep an immaculate lush lawn all year round with a smart automated mowing system, or for smaller areas consider laying artificial grass, which looks as good as the real thing with no maintenance or watering required.
a fresh lick of paint or stain will revitalise these spaces. Hiring a water blaster from your local home depot is an easy and effective way to refresh concrete patios, driveways and paths. If you have a pool, now is the time to ensure all the pumps are working and the pool chemicals are balanced.
GREEN FINGERS It’s that time of year to get planting and repotting to create the ultimate lush outdoor oasis. Potted plants, shrubs, herbs and flowers can add a burst of colour to otherwise unadorned spaces, and, if space is at a premium, walled or vertical gardens can be created with relative ease to camouflage unsightly fences. Hang trailing plants in baskets or woven macramé hangers to add interest and soften architectural features.
ENTERTAINER’S DREAM For more substantial, long-lasting additions that will completely transform your outdoor living spaces, you may wish to enlist the services of a seasoned landscape architect. Choose a company that offers the complete design package, from plant selection, to hardscaping, to installation of pergolas, louvres, swimming pools, built-in barbeques and outdoor fireplaces. Or, for the Kiwi DIY approach, there are fabulous design blogs to browse where you’ll find endless inspiration to spark your creativity.
HouseMatters
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0800 000 525
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