Skip to content

House prices rise nearly 20% in a year to median $725K

House prices rise nearly 20% in a year to median $725K

Navigation for News Categories

House prices have increased 19.8 percent year-on-year with the median now at $725,000.

No caption

Photo: 123RF

The Real Estate Institute’s (REINZ) House Price Index, which measures the changing value of property in the market also hit a new high, gaining 13.5 percent to 3248.

Auckland’s median house price hit the $1 million mark for the first time, up from $860,000 in October 2019.

REINZ chief executive Bindi Norwell said October 2020 would go down in “housing history”.

“As being the point in time when Auckland region’s median house price hit the million-dollar mark… something no one anticipated or expected just six months after the entire country came out of lockdown.”

“While this is a significant milestone, it raises serious questions around future affordability for Auckland residents wanting to get a foot on the property ladder. It also highlights just how important it is that legislation, such as the RMA [Resource Management Act], is re-addressed quickly by the current government so it is fit for purpose to help support more houses being built at speed and at scale.”

In addition to Auckland nine other regions saw record median prices for October.

They were Gisborne, Marlborough, Otago, Wellington, Manawatu/Whanganui, Northland, Bay of Plenty, Waikato and Canterbury.

Norwell said the re-introduction of loan-to-value (LVR) restrictions as signalled yesterday by the Reserve Bank would be highly likely.

“Given the price rises we’ve seen over the past few months, we wouldn’t be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up – particularly for investors.”

As well as record prices, the amount of properties sold during October skyrocketed to the largest amount since May 2016 and the largest amount for an October month since 2006.

“New Zealand’s housing market is extremely buoyant at the moment, with more than 8800 properties sold around the country – that’s more than 283 properties sold every day in October.

“This is just not what anyone expected to happen and shows just how much people’s concern around future price rises is adding to their determination to buy now before prices potentially rise even further.”

Inventory levels remained well down year-on-year but did rise month-on-month for the first time in five months.

“There is some relief in sight as inventory levels have lifted 3.2 percent since last month.”

Get the RNZ app

for ad-free news and current affairs
Download from Apple App StoreDownload from Google Play Store

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us or and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.

Leave a Reply

Privacy Policy Designed using Unos Premium. Powered by WordPress.

Live Updates COVID-19 CASES