REINZ, the most up to date source of real estate data in New Zealand, announced that there were 8,174 dwelling sales nationwide in September 2015, up 38.3% on September 2014 and up 5.3% on the previous month, August.
The national median price was $484,650 for September, an increase of $64,650 or 15.4% on September 2014, to reach a new record high. Excluding the impact of the Auckland region, the national median price rose $28,000 to $365,000.
Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne says, “There is continued evidence of Auckland investors and first home buyers spreading to other regions causing a ‘halo’ effect, most notably in Northland and Waikato/Bay of Plenty. These regions have recorded very strong sales growth so far during 2015, and this is now starting to be seen in the median price data.
For the Nelson/Marlborough region median price rose $22,250 (+6%) compared to September 2014 with prices rising 8% in Nelson, 6% in Motueka and 5% in Marlborough/Kaikoura.
REINZ Chief Executive, Colleen Milne noted that “Listings continue to be in short supply right across the market, although open home attendances are up on last year. Investor interest continues to be strong, mostly from outside the region, although first home buyers are certainly active, they are not as ‘busy’ as investors.”
For the wider Motueka market the number of new properties coming on to the market remained steady compared with the same time last year while the number of sales for September were up significantly on the same time last year exceeding new listings by 25%.
This situation has the potential for demand for property to exceed supply, with the usual upshot been the increase in property prices. So far we have only seen this occurring in the occasional sale in the under $350,000 price bracket.
With buyer demand remaining steady, relaxing LVR rules and low interest rates how the market will develop between now and the end of the year will very much depend on the level of new listings.