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August Market Update

By Alan Atkins

Four regions hit new record high median sale prices in July, with the national median sale price rising by $5,000 to $505,000, only $1,000 shy of the record median price reached in May 2016, according to the latest data released in August by REINZ, source of the most recent, complete and accurate real estate data in New Zealand.

Inventory continues to fall rapidly nationwide, with a 33% decline in properties available for sale year-on-year and six regions seeing falls of greater than 40%. Real Estate Institute of New Zealand (REINZ) spokesperson Bryan Thomson says, “Prices continue to rise in many regions, showing that demand is still firm. Sales volumes remain below previous periods, as the continued shortage of supply impacts buyers, who are struggling to find properties to buy. We will watch market reaction with interest as the expected increase in listing numbers during the spring and summer selling period become available and the market assesses the impact of the recently announced LVR rule changes, the approval or otherwise of the Auckland Unitary Plan and possible interest rate cut.”

For the Nelson/Marlborough region the median price across the region rose $26,500 (+7%) compared to July 2015, with prices rising 30% in Richmond, 21% in Motueka and 5% in Nelson. The level of inventory available for sale has increased by three weeks over the past month to 15 weeks of supply.

REINZ spokesman Bryan Thomson noted: “The upward trend in the median price is seeing some homes priced out of the first home buyer market despite low interest rates and changes to Kiwisaver for first home buyers.  An increase in the numbers of properties available for sale is helping. However, the overall level of inventory remains low by historical standards.”

For our local Motueka market and surrounds another month passes where more homes have been sold than have been listed which continues to put buyers under intense pressure to move quickly and pay more than they expected. The median days on the market are sitting at 56 for Motueka and 169 for the wider area, the higher than expected median days on market reflects some older listings have now found new owners.

The average sale price for July was 16% over the current capital value with the median house price at $590,000.

With only a few days left until spring we expect the usual surge in new listings, the effect this will have on the market will be determined by the level of buyer interest and how willing the banks are to lend.

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

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