Article: REINZ News

REINZ November Highlights SignificantREINZ November Highlights Significant

November Highlights Significant Lift In Activity Reinz Figures Show Largest October/November Volume Increase In 6 Years Record Median Prices Recorded In 7 Regions

The number of properties sold in November across New Zealand increased 17.8% from the previous month – the largest October to November increase seen in 6 years 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.

The number of properties sold in New Zealand excluding Auckland increased 19.4% month-on-month and in Auckland it increased 13.9% month-on-month.
All regions, except the West Coast, saw sales volume increase in comparison to October.

Bindi Norwell, Chief Executive at REINZ says: “There was a 17.8% increase in the properties sold in New Zealand from October to November – this is the largest October to November increase we’ve seen in six years. After taking into account seasonal adjustment, that increase is 4.5%. While there was a significant increase in properties sold, November traditionally sees a robust increase, although the change in November compared to last month was stronger than we would have expected based on past data.

“After a difficult winter and a slow start to spring, the real estate industry has experienced a lift in optimism and activity, with increases in the properties sold in 15 out of 16 regions across the country when compared to the previous month,” continues Norwell.
Regions with the biggest increase in November compared to the previous month were:
• Nelson – up 34.7% - this represents the highest number of properties sold in a
month for 2017, whereas most regions experienced their highest in Q1 2017
• Canterbury – 33.8% - this is the highest number of properties sold for the month of
November for the region in 10 years
• Otago – up 32.3%
• Manawatu/Wanganui – up 25.2%
• Tasman – up 23.1%.

Gisborne and Hawke’s Bay (up 15.1% and 17.8% respectively) also saw the highest number of properties sold for the month of November for 10 years.
Record median price for NZ ex Auckland and 7 regions. Prices up in 15/16 regions year-on-year.
Median prices across New Zealand rose 1.9% in November to $540,000 – up from $530,000 in October 2017 and median prices for New Zealand excluding Auckland rose 2.3% in November to a record $450,000 (up from $440,000 in October) – year-on-year saw a price increase of 3.8% and 8.4% respectively.

Auckland’s median price increased 3.8% to $880,000 – up from $848,149 in October and 0.6% year-on-year. Auckland’s median price has now increased by $50,000 over the last 4 months.
Seven regions saw record prices in November:
• Bay of Plenty – up 7.8% month-on-month to $567,000 (up 11.0% year-on-year)
• Hawke’s Bay – up 6.2% month-on-month to $420,000 (up 19.3% year-on-year)
• Manawatu/Wanganui – up 4.8% month-on-month to $300,000 (up 14.9% year-on-
year)
• Wellington – up 6.8% month-on-month to $549,777 (up 8.7% year-on-year)
• Marlborough – up 4.0% month-on-month to $437,000 (up 9.3% year-on-year)
• Canterbury – up 2.2% month-on-month to $460,000 (up 3.4% year-on-year)
• Southland – up 11.8% month-on-month to $265,000 (up 16.2% year-on-year).

“There is no denying that with one of the wettest winters on record and the election, that it has been a difficult few months for the industry. However, last month has provided the industry with a boost in optimism and confidence which has seen the market return to normal November conditions. Renewed confidence in the market has seen prices rising year-on-year in 15 of the 16 regions in New Zealand and record prices in 7 regions,” points out Norwell.

“The Auckland story paints an interesting picture with Rodney District experiencing a 14% year-on-year median price increase to $985,000. Looking into this data further, the increase was largely driven by a chance in the mix of properties sold, with 41% more properties sold for more than $1million compared to the same time last year. The REINZ HPI further confirmed the impact of the change of mix with an annual increase of 2.2%, indicating a more stable and moderate price growth in the Rodney District,” concludes Norwell.

REINZ House Price Index
The REINZ House Price Index for New Zealand increased 0.3% month-on-month to reach an all-time high of 2,663 during November indicating that the ratio of sales prices when compared to CVs is at its highest point since the Index began. The same is true for New Zealand excluding Auckland, with a record high of 2,476 (up 0.8% on the previous month).
The REINZ HPI also showed that all but three regions (Auckland, Taranaki and Canterbury) reached new highs during November indicating strong value growth across most of the country.
Regions with the highest growth year-on-year were Gisborne/Hawke’s Bay (up 17.4% to 2,335), Southland (up 12.4% to 2421), Wellington (up 9.7% to 2,423) and Northland (up 9.6% to 2570).

Days to sell
The median number of days to sell a property nationally increased by 1 day (from 32 to 33) when compared to November 2016.
Regionally, Marlborough saw the biggest increase in the number of days to sell (up 14 days to 37), followed by Southland (up 5 days to 29), Manawatu/Wanganui (up 4 days to 31) and Waikato and Canterbury (both up 3 days to 37 and 33 respectively).
Regions with the biggest decreases year-on-year included the West Coast (down 60 days to 35 – the lowest figure for the month of November for 9 years), Tasman (down 10 days to 21), Nelson (down 5 days to 24) and Gisborne (down 2 days to 30).

Auctions
The number of properties sold by auction across New Zealand declined (from 1,771 in November 2016 to 1,217 in November 2017) – down 31.3% on the same time last year, but up 38.9% from last month. Auctions now represent 18% of all sales nationally.
In Auckland, which traditionally sees a large portion of sales sold by auction, 638 (33%) of all properties sold in November were via auction – this is a decrease of 34% in comparison to November 2016 but an increase of 35.7% month-on-month indicating a return of positivity to the Auckland market.

The majority of regions saw an increase in the number of properties auctioned month-on-month. The exceptions were Waikato and the West Coast, and Nelson, Taranaki and Tasman saw the number of auctions remain flat.
Inventory

The number of properties available for sale nationally increased by 7.6% (from 25,538 to 27,488) compared to 12 months ago, and for New Zealand excluding Auckland the number of properties available for sale increased by 0.5% (from 17,467 to 17,553).
Regions with the largest increase year-on-year in the number of properties for sale were Auckland (up 23.1%), Waikato (up 15.1%), Canterbury (up 10.3%) and Wellington (up 9.1%).

Regions with the biggest decrease year-on-year in the number of properties available for sale were Taranaki (-18.4%), Gisborne (-16.8%), West Coast (-15.7%) and Southland (-13.3%).

Price Bands
Between November 2016 and November 2017, the number of homes sold fell in every price bracket except for the $2million to $2.99million category which increased by 11.8%. During November, 142 properties were sold for between $2-$2.99million, up from 127 in November 2016.

The number of dwellings sold for less than $500,000 fell by 14% from 3,574 to 3,073 representing 44.6% of all homes sold across the country. However, month-on-month the number of sub $500,000 homes sold increased by 13.8%.

Auckland
Compared to November 2016 the median price rose 1% to be $880,000. Rodney District was the big mover with a 14% increase in median price over the year. At the opposite end of the scale Waitakere, North Shore and Auckland City all saw drops in their median price compared to the same time last year.  Compared to October 2017, the region’s median increased 4% and most TA’s had an increase in median price with a large drop in Franklin and a moderate drop in Waitakere being the exceptions. On a seasonally adjusted basis, Auckland’s median price had a 1% increase compared to October, indicating that a moderate increase in median price was mostly expected and only slightly higher than what we’d expect moving from October to November.

Sales volume in the Auckland region increased 14% compared to October, with strong increases in sales numbers across all TA’s, particularly Auckland City, Papakura and Manukau (21%, 19% and 17% respectively).  Compared to November 2016 sales fell 17% with volumes decreasing in all TA’s, most notably in Waitakere City (-21%), North Shore City (-20%) and Auckland City (-20%). On a seasonally adjusted basis, sales volumes increased 2% compared to October indicating that the large increase in sales from October was only a small amount more than expected when moving from October to November.

The median number of days to sell improved two days from last month, moving from 37 days to 35 days. The median number of days to sell eased by one day compared to November 2016. Over the past 10 years the average number of days to sell during November for Auckland has been 33 days. There are now 23 weeks of inventory in the Auckland region, an increase of 9 weeks compared to November 2016.

Northland
The median price across the region rose by $28,000 (+7%) compared to November 2016. Prices rose 13% in Far North, and 4% in Whangarei but fell 10% in Kaipara. Compared to October 2017, the median price increased $10,000 (2%) with prices falling 33% in Kaipara, but rising 34% in Far North and 1% in Whangarei. On a seasonally adjusted basis the median price increased 2% compared to October, indicating that the increase in median price was a little more than expected moving from October to November.

Sales volume in Northland increased 4% compared to October with sales falling 19% in Kaipara, but increasing by 8% in Whangarei and 6% in Far North. Compared to November 2016, sales volumes fell 28% across the region, with a 67% fall in Kaipara, 29%
fall in Far North and a 13% fall in Whangarei. On a seasonally adjusted basis, sales decreased 6% compared to October, indicating that the increase in sales from October was less than expected when moving from October to November.

The median number of days to sell improved by three days compared to October, from 47 days in October to 44 days in November.  The median number of days to sell eased by two days compared to November 2016. Over the past 10 years the average number of days to sell during November for Northland has been 53 days. There are now 29 weeks of inventory across the Northland region, an increase of one week over the past 12 months.


Leave your comment

Commenting is not available in this weblog entry.