April 16, 2012
According to the Real Estate Institute of New Zealand (REINZ), median house prices hit a record high, increasing 4% (NZ$15,000) from NZ$355,000 to a record NZ$370,000, passing the previous November 2011 high of NZ$367,500. Meanwhile, nationwide house sales volumes were at their highest levels since November 2007, reaching 7,330 in March.
According to REINZ chief executive Helen O’Sullivan, with the new median price only NZ$5,000 higher than March 2011 and just NZ$2,500 higher than the previous high, there is potential for further growth in prices. “Prices are certainly not rising sharply, but the trend is certainly starting to move upwards.”
Records were also reached in Auckland with the median sales price being NZ$495,200. This meant sales prices in March were up 6% from February and 5% on March of the previous year. After being noted in the Productivity Commission’s report last week, O’Sullivan attributed this to the low stock and growing demand for Auckland city housing. Auckland Central and the North Shore were the most notable areas where this was the case with prices up 9.7% and 8.2% respectively from March 2011.