The Real Estate Institute’s index of median house sale prices for the first 11 months of 2019 shows a 7.7% gain outside Auckland and a 0.6% gain in Auckland.
Sales were down 3.8% outside Auckland, 2.6% in Auckland.
Institute chief executive Bindi Norwell listed 5 influences on the market:
- The ongoing effects of the foreign buyer ban, which came into effect in late 2018 and appears to have impacted sales volumes, but not had the intended flow-on effect for sales prices
- The further stabilisation of pricing in the Auckland market, which has hovered around $850,000 for about 3½ years – although the last 3 months have started to show signs of an uplift
- The continued strength of the regions in terms of price growth, with increased demand & a lack of supply of properties, putting pressure on prices in some areas
- The record low official cashrate & low bank lending rates have meant eased accessibility for more first-time buyers
- The proposed capital gains tax, which caused many people, particularly investors, to take a ‘wait & see’ approach.
Attribution: Institute release.