News

Market Comment October 2017

By Alan Atkins

Median residential property prices across New Zealand have increased by 1.2% year-on-year to $525,000 according to the latest data from the Real Institute of New Zealand (REINZ) – source of the most complete and accurate real estate data in New Zealand.
Bindi Norwell, CEO at REINZ says: “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.
Looking at the regional picture, all 16 regions in the country experienced a decrease in the number of properties sold on a year-on-year basis. Regions with the biggest reduction in volumes were Tasman (down 37%), Southland (down 34%) and Auckland (down 31.5%). Marlborough experienced the lowest number of sales since January 2012 (down 27.4%).

For the Nelson/Marlborough region, the median price rose $22,000 (+5%) compared to September 2016. On a seasonally adjusted basis the median price had 0% movement indicating that the increase in the median price was exactly what was expected at this time of year.
There was 14 weeks of supply across the region in September, three weeks more than in
September 2016.

For our local Motueka market and surrounds, the number of new listings are down on last month and also the same period last year, this is not surprising with the strength in listings that we have seen over the winter months.
The number of sales were down by around 30% compared to the previous month and the same period last year; reflecting the slowdown in the number of sales the median days on market is also creeping out from 38 for September 16 to 47 for September 2017. The median price is remaining firmly in the high $480ks with the average sale price 43% above the average capital value.
In summary there appears to be a slowdown in the number of sales while prices have remained firm for our local market, whether this is a temporary pause due the recent high level of activity, a change driven by a lack of confidence around the political situation or a true change in our market we will have to wait and see.

Content and statistics quoted in this article are sourced from REINZ and in-house, while we endeavour to keep the figures as accurate as possible they cannot be guaranteed.

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