Tag Archives | house prices

Institute says Auckland house prices still up, sales down

The Real Estate Institute said in its monthly statistics out last week that its house price index for Auckland was up 1.8% on a year ago but down 1% in the last 3 months.

[The institute released its figures on Wednesday.]

The median price for the region was up 5% ($41,000) over the year to $865,000 and up 13% on the isthmus, 12% in Manukau, 8% in Rodney (on old council boundaries).

Sales were down 27.5% compared to a year ago, but in Papakura that was 9%, and in Franklin and on the North Shore it was 15%.

The institute said the average number of days to sell in Auckland had eased in May – it’s extended from 35 days in April and 32 days a year ago to 40 days, compared to a May 10-year average of 36 days. Inventory was up from 13 weeks to 22 weeks from a year ago.

Nationally, the median house price rose 6.7% ($34,000) from a year ago to $540,100 and the median hit record highs in 4 regions – Northland $450,000, Manawatu/Wanganui $269,000, Nelson/Marlborough $483,250 & Southland $238,000.

Sales nationally fell 18.4%.

The number of properties for sale in Auckland increased by 2814 (47%) on a year ago, but outside Auckland the number fell by 2683 (14%).

Attribution: Institute release.

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Barfoot home sales slump but price fall slight

Barfoot & Thompson’s average & median house sale prices both dropped over 5% from March to April, sales fell 40% and new listings fell 35%.

The agency’s managing director, Peter Thompson, said on Wednesday sales fell to their lowest level in an April since the 2008 global financial crisis, but lower turnover had a limited impact on values: “Sales numbers in April were down by about a third compared with the average for the previous 3 months, yet, given this significant fall, the average & median prices held steady. The median sales price at $850,000 for the month was down only $5500 on the average median price for the previous 3 months. The same trend was there around the average price, which at $917,079 was down only $25,000 on the average for the previous 3 months.

“While prices have declined from March’s all-time record highs, the fall relative to the average for the first quarter of this year is modest, and on a year-on-year basis the median price is up 3.7% and the average price is up 5%.

“It is a changed market from what we have been experiencing for a number of years and you have to go back 9 years to find an April in which fewer homes were sold.”

Mr Thompson said new listings in April were excellent at 1292 and, combined with lower sales, this allowed stock numbers & buyer choice to remain high: “At month end we had 4214 listings on our books, close to what it has been at month end each month this year, but 48% higher than it was at the same time last year.

“The decline in sales numbers was felt evenly across all price ranges, with more than a third of all sales being for more than $1 million. Sales of property under $500,000 accounted for 6% of all sales.”

Attribution: Agency release.

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Auckland house median slips

The Real Estate Institute said today the median house sale price in Auckland in February, $800,000, was down $5000 from January but up $50,000 on the median a year ago.

Nationally, the equation was up on both previous periods – up $5000 on January and up $45,000 on a year ago.

The $1 million-plus price bracket regained some of the market share it lost in January. After falling from 13% in December to 10.6% in January, the top bracket was back up to 11.3% of the market in February.

The breakdown of sales in price brackets and their share of the market in February 2017 & February 2016:

$1 million-plus, 708 (675), 11.3% (9.3%)
$600,000-999,999, 1639 (1656), 26.2% (22.7%)
$400,000-599,999, 1632 (1934), 26.1% (26.5%)
Under $400,000, 2247 (3026), 36.4% (41.5%)

Around the region on the old boundaries, February 2017 median & sales with January 2017 & February 2016 in brackets:

Rodney, $832,500 ($897,500, $760,000), 148 (112, 163)
North Shore, $1,013,000 ($965,000, $940,000), 296 (182, 372)
Waitakere, $805,000 ($761,500, $683,000), 200 (170, 289)
Auckland City, $891,000 ($845,500, $825,000), 464 (416, 549)
Manukau, $800,000 ($815,000, $749,500), 273 (193, 320)
Auckland region, $800,000 ($805,000, $750,000), 1661 (1247, 1936)
NZ, $495,000 ($490,000, $450,000), 6253 (4307, 7291)

Attribution: Institute release.

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Median Auckland house prices up over year, down from November

Median sale prices for houses in Auckland in December were all up on a year ago, and all down from November. Volumes were all down compared to both November 2016 & December 2015.

The Real Estate Institute said today Auckland’s median house sale price rose $70,000 (9.1%) to $840,000 compared to December 2015 – up 13% in Rodney, 14.1% on the North Shore, 12.8% on the isthmus and 7.9% in Manukau.

But it was down 1.4% from $851,944 in November – by 2.1% in Rodney, 6% on the Shore, 2.6% in Waitakere, 2.2% on the isthmus, 3% in Manukau.

Heaviest hit in the decline of sales was the isthmus, down 20.3% from a year ago, and down 29.4% from November to December. Over the whole region, sales fell 15.8% from a year ago and 22% from November.

Institute chief executive Bindi Norwell said in the institute’s monthly release: “In Auckland, the long-term median price trend has been consistently rising, despite a slight easing compared to November 2016. The combination of fundamental factors, such as strong underlying population growth and a lack of supply in the market to meet Auckland’s growing population, suggests that we may be unlikely to see much change to the upward trend in prices unless these fundamentals change.”

The national median sale price slipped from a record $520,000 in November to $516,000 in December, but 5 of the institute’s 12 regions hit new record median sale prices – Northland, Hawke’s Bay, Wellington, Otago & Southland.

Mrs Norwell said price growth was strong in Wellington, rising 22% ($100,000) in a year to a new record of $530,175, even though sales volume also rose from November to December.

The institute’s breakdown of price brackets showed $1 million-plus continued to take a greater share of the market nationally (13% in December). That shift has been fairly constant since New Zealand started to clamber out of the global financial crisis in 2011. In January 2012, 59.5% of house sales nationally were for under $400,000, and only 2.6% were for over $1 million.

The breakdown of sales in price brackets and their share of the market in December 2016 & December 2015:

$1 million-plus, 848 (755), 13.0% (10.3%)
$600-999,999, 1771 (1760), 27.1% (24.1%)
$400-599,999, 1687 (1867), 25.8% (25.5%)
Under $400,000, 2227 (2931), 34.1% (40.1%)

Around the region on the old boundaries, December 2016 median & sales with November 2016 & December 2015 in brackets. The percentage figures show the shift from November to December, and since December 2015, in median sale prices & sale volumes:

Rodney, $841,750 ($860,000, $745,000), 160 (190, 191); -2.1%, 13.0%; -15.8%, -16.2%
North Shore, $1,038,500 ($1,105,000, $910,000), 354 (405, 413); -6.0%, 14.1%; -12.6%, -14.3%
Waitakere, $760,000 ($780,500, $717,500), 268 (318, 302); -2.6%, 5.9%; -15.7%, -11.3%
Auckland City, $978,000 ($1,000,000, $867,000), 558 (790, 700); -2.2%, 12.8%; -29.4%, -20.3%
Manukau, $820,000 ($845,000, $760,000), 325 (397, 365); -3.0%, 7.9%; -18.1%, -11.0%
Auckland region, $840,000 ($851,944, $770,000), 1873 (2400, 2225); -1.4%, 9.1%; -22.0%, -15.8%
NZ, $516,000 ($520,000, $465,000), 6533 (7576, 7313)

Attribution: Institute release.

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Barfoots chief says rise in house prices has stopped

Barfoot & Thompson managing director Peter Thompson said yesterday “a typical, solid December’s trading” had confirmed that Auckland residential property prices had stopped rising.

“December’s average sales price at $913,709 and the median price at $840,000 were both down for the second consecutive month.

“It was a typical December trading period, with sales numbers & new listings in line with those for the previous year, and prices being not far off the record prices of October & November.

“Signs that the rate at which prices were increasing was declining have been there since mid-year, and that decline showed in the prices achieved at year end. In December, the average price declined by 2% when compared to the average price for the previous 3 months. For the median price the reduction was 1.8%.

“While prices definitely eased, there was certainly no suggestion that current prices are under any great downward pressure and normal sales numbers are being achieved.”

Mr Thompson said the modest December retreat was similar to what happened in December 2015. On that occasion, it took until March for the upward price trend to reappear.

“New listings at 776 were the lowest in a month for the whole year, but were the highest in a December for 5 years.

“Year-on-year, the average sales price increased by 8.6%, the lowest for 4 years. It compares with 13.9% in 2015, 10.3% in 2014 and 11.1% in 2013.

“For the median price, the 2016 increase was 8.9% compared to 17.4% in 2015, 11.1% in 2014 and 12.6% in 2013.

“At year end we had 3270 properties on our books. While this number is down on those at the end of October & November, it is the highest number at year end for 4 years, and more than a third higher than it was at the same time last year.

“Sales of million dollar properties remained strong in December, with sales in this price category at 282 representing 39.1% of the month’s sales.

“Sales of properties for under $500,000, at 52, represented 7.2% of the month’s sales. Throughout the year, 11.1% of all the properties we sold were for under $500,000.”

Attribution: Agency release.

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Auckland house prices ease but sales up

The Real Estate Institute said today Auckland sales rose 12% from October to November, including a 25% rise in Rodney and 19% on the isthmus.

Institute spokesperson Bryan Thomson said: “Auckland prices eased back in November after hitting a record high in October. However, the underlying trend of Auckland prices remains steadily upward, rising by $269,944 at a compound annual growth rate of 13.2% since the introduction of the first set of loan:value ratio rules in October 2013.

“First-homebuyers & investors are staying away from the Auckland market, with numbers down 50% in some parts of the region. As a result, inventory levels are continuing to climb. Despite this, the number of sales by auction continues to hold above 40% across the region.”

Nationally, the median sale price reached a new record of $520,000 and median sale prices hit new records in 10 of the institute’s 12 regions – Auckland & Central Otago-Lakes were the 2 to miss.

Sales rose 13% from October to 7576, but were 6% below the November 2015 tally.

Mr Thomson said: “Inventory is continuing to decline nationwide, with an 8% fall in properties available for sale year-on-year and 2 regions with less than 12 weeks of supply. Wellington has 9 weeks of supply available and Hawke’s Bay has 11 weeks.

Sales over $1 million continued to take a rising share of transactions, and the under-$400,000 bracket continued its decline. The breakdown of sales in price brackets and their share of the market in November this year & last year:

$1 million-plus, 1106 (833), 14.6% (10.4%)
$600-999,999, 2034 (1802), 26.8% (22.4%)
$400-599,999, 1890 (2130), 24.9% (26.5%)
Under $400,000, 2546 (3283), 33.6% (40.8%)

Around the region on the old council boundaries, November 2016 median & sales with October 2016 & November 2015 in brackets:

Rodney, $860,000 ($862,500 $785,000), 190 (152 179)
North Shore, $1,105,000 ($1,000,000, $905,000), 405 (381, 429)
Waitakere, $780,500 ($797,000 $711,500), 318 (270 332)
Auckland City, $1,000,000 ($1,046,000 $830,000), 790 (662 815)
Manukau, $845,000 ($851,000 $736,000), 397 (405 443)
Auckland region, $851,944 ($868,000 $765,000), 2,400 (2,135 2,514)
NZ, $520,000 ($510,000, $459,500), 7576 (6727, 8048).

Attribution: Real Estate Institute release.

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Regional house price rises grab attention

The Real Estate Institute said yesterday Auckland’s median sale price rose 7% from a year ago to $825,000 in September, on sales down 23%.

Nationally, the median hit a record $515,000, the median excluding Auckland also hit a record, $400,000, and new median highs were set in 6 regions.

Sales nationally fell 2% from August and 10% from last September to 7397.

Sales of homes over 41 million continued to grow their market share, rising by 1% from a year ago to 13.7%, while the bottom bracket recorded by the institute, under $400,000, continued to decline, falling 3.8% from a year ago to 34.8% market share.

Sales nationally in price brackets and their share of the market in September 2016 (September 2015 in brackets):

$1 million-plus, 1016 (1042), 13.7% (12.7%)
$600-999,999, 1987 (1970), 26.9% (24.1%)
$400-599,999, 1822 (2009), 24.6% (24.6%)
Under $400,000, 2572 (3153), 34.8% (38.6%)

Around the Auckland region on the old boundaries, September 2016 median & sales with August 2016 & September 2015 in brackets:

North Shore, $1,020,000 ($1,045,000, $958,000), 380 (410, 525)
Waitakere, $760,000 ($800,000, $727,500), 343 (345, 424)
Auckland City, $947,500 ($911,750, $850,000), 804 (726, 1005)
Manukau, $780,000 ($815,000, $733,500), 451 (462, 627)
Rodney, $816,500 ($862,500, $815,000), 164 (192, 224)
Auckland region, $825,000 ($842,500, $771,000), 2424 (2413, 3158)

Earlier story:
16 September 2016: REINZ Auckland house sales median up 14%, but CoreLogic warns of slowdown

Attribution: REINZ release.

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REINZ Auckland house sales median up 14%, but CoreLogic warns of slowdown

The median price of sales recorded in Auckland by the Real Estate Institute rose by $102,500 (+14%) to a record high of $842,500 in August.

Last week, Quotable Value Ltd put the average value of Auckland housing at $1 million. The QV index, “powered” by input from the international CoreLogic group, is based on sales on a moving 3-month period (more on that below).

The Real Estate Institute said on Wednesday prices rose by 21% in Manukau in August, 20% in outer Auckland and 14% in Rodney (which includes the Hibiscus Coast) and on the isthmus. Compared to July the median price rose by $17,500 (2%) – 9% in Auckland City, 3% in outer Auckland and 1% in Rodney & Manukau.

Institute spokesman Bryan Thomson said inventory levels were low but slowly increasing – in Auckland, up from 10 weeks’ supply in July to 12 weeks’ supply in August. He said sales volumes fell 20% in Auckland compared to a year ago, and 3% nationally.

“The indications are that the struggle for stock is the biggest factor driving market behaviour & price expectations across the country, as we await spring listings. The continued shortage of listings, coupled with the impact of the loan:valuation ratio (LVR) changes on investors, is seeing sales volumes more muted than expected at this time of year.”

The institute recorded 7527 unconditional sales in August, up 3% on July but down 3% from a year ago.

Section sales, which are exempt from the new LVR ratios, jumped 37% nationally compared to last August. Auckland section sales were up 19%.

CoreLogic view

CoreLogic NZ Ltd’s head of research, Jonno Ingerson, said when the $1 million tag arrived last week:This latest milestone has led to the housing minister being labelled the ‘million dollar minister’, the front page of the papers & the news websites have been awash with breathless stories of Auckland’s unaffordability, and the talkback lines filled with the usual pundits.

“Why don’t I care? Because it’s just a number. It’s just one way of measuring Auckland’s house prices. I could give you 5 others, some of which show Auckland has been beyond a million dollars for a long time, and others which show it is yet to get there.

“But they all share the same common theme. Auckland’s house prices have been rising for years and very little has been done that has slowed them. Affordability is now a very real issue for many people…. That story might be about to change, at least for a while. I’m watching some hard data coming across my desk that suggests the heat has well & truly come out of the market.”

Mr Ingerson said the monthly QV house price index was an extremely reliable measure of value change in the housing stock of an area, but it turned slowly by being based on data from the last 3 months. However, he added that “anything more reactive than the QV house price index tends to be more volatile, so you’re never sure if an up or a down is real or noise”.

Back to the Real Estate Institute figures:

Sales nationally in price brackets and their share of the market in August 2016 (August 2015 in brackets):

$1 million-plus, 987 (848), 13.1% (10.9%)
$600-999,999, 1915 (1834), 25.4% (23.6%)
$400-599,999, 1819 (1995), 24.2% (24.9%)
Under $400,000, 2806 (3150), 37.3% (40.6%)

2 years ago, in August 2014, 46% of sales were in the under-$400,000 bracket. During the next year that bottom bracket’s share of the market slid, but in the last year it’s moved in a range of about 4%.

Around the Auckland region on the old boundaries, August 2016 median & sales with July 2016 & August 2015 in brackets:

North Shore, $1,045,000 ($1,062,500, $935,500), 410 (408, 556)
Waitakere, $800,000 ($803,000, $741,000), 345 (350, 404)
Auckland City, $911,750 ($837,000, $800,000), 726 (817, 906)
Manukau, $815,000 ($805,000, $675,000), 462 (473, 595)
Rodney, $862,500 ($852,500, $755,650), 192 (178, 184)
Auckland region, $842,500 ($825,000, $740,000), 2413 (2520, 3002)

Link: Ingerson blog article on index

Earlier story:
7 September 2016: Multiple owners still highly active as QV Auckland housing index tops $1 million

Attribution: Real Estate Institute, CoreLogic.

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Multiple owners still highly active as QV Auckland housing index tops $1 million

Auckland’s relentless rise in house values continued in August as the average for the whole region topped $1 million, according to Quotable Value Ltd’s monthly house price index.

Across the northern border the Kaipara average was $427,199, and across the southern border the average in Hauraki was $312,792. Nationally, the average rose 6% in the last 3 months to $612,527.

In July, the average had made it past $1 million in 2 of Auckland’s old cities, Auckland & North Shore, and in 6 sub-districts, and the whole region’s average fell $7800 short of that figure.

In August, the average climbed to $1.18 million in Auckland & North Shore, was above $1 million in 7 sub-districts and the whole region’s average went $13,600 over $1 million.

The index for one part of the region, north-west Manukau, was double the 2007 market peak in July, climbed to 105% in August and was joined by the isthmus southern suburbs at 101.7% of that 2007 peak.

The average in the isthmus eastern suburbs in July was $1.45 million and climbed $22,000 to $1.67 million in August.

The Auckland regional figures adjusted for inflation dropped from 15.9% to 15.4% for the year, and from 85.5% to 57.5% for the period since the 2007 peak.

The nationwide figures adjusted for inflation dropped from 14.6% to 14.2% for the year, and from 47.8% to 25.6% for the period since the 2007 peak.

Around the country

QV national spokesperson Andrea Rush said yesterday: “There was a strong surge of activity in June & July. However, it now appears the new loan:value ratio restrictions for investors adopted by banks towards the end of July have started to have an impact in the housing markets in Auckland, Tauranga & Hamilton during August.

“In recent weeks there has been a drop-off in market valuation requests, auction clearance rates, open home attendees & loan application rates in these centres.

“The Wellington market, however, continues to see strong growth, with values there increasing at a faster rate than the Auckland region over the past year, and the Dunedin market also continues to show strong levels of activity & demand.

“Some regional centres have also seen significant value growth of more than 25.0% over the past year, including Whangarei, Rotorua & Queenstown.

“The Christchurch market, by comparison, is relatively flat with a shortage of listings in the market, resulting in not much activity apart from in the new-build & subdivision part of the market.”

Multiple owners still highly active

Ms Rush said CoreLogic’s latest buyer classification data for the third quarter of 2016 showed multiple property owners continued to be very active across the Auckland region, accounting for 45.9% of sales. “They are even more heavily concentrated in the North Shore & Auckland City, at over 50% of sales for the quarter. Across the rest of New Zealand, multiple property owners accounted for 42.3% of all sales.”

QV's indexes for Auckland on the old local body boundaries.

QV’s indexes for Auckland on the old local body boundaries.

QV’s index figures around Auckland on the old council boundaries, what’s happening at the neighbours & at some other main centres, and nationally – the latest average value & index shifts in the last 3 months, last 12 months & since the 2007 peak:

Whangarei, $429,885, 6.2%, 21.6%, 8.5%
Kaipara, $427,199, 4.0%, 17.5%, 7.7%
Rodney, $869,587, 2.4%, 15.6%, 48.3%
North, $881,846, 2.5%, 15.4%, 46.8%
Hibiscus Coast, $858,729, 2.4%, 15.7%, 46.2%
North Shore, $1,183,443, 6.5%, 14.9%, 83.4%
Coastal, $1,345,327, 6.0%, 14.6%, 78.5%
Onewa, $959,051, 8.0%, 13.4%, 93.4%
North Harbour, $1,153,406, 5.8%, 17.8%, 89.8%
Waitakere, $806,832, 5.5%, 14.7%, 90.3%
Auckland City, $1,180,245, 5.3%, 14.3%, 89.6%
Central, $1,012,112, 3.0%, 13.7%, 77.7%
East, $1,466,887, 4.8%, 14.4%, 84.1%
South, $1,085,631, 7.2%, 14.8%, 101.7%
Islands, $1,021,668, 9.5%, 16.9%, 59.8%
Manukau, $881,628, 6.9%, 19.5%, 92.6%
East, $1,132,626, 7.4%, 18.5%, 90.0%
Central, $679,346, 5.6%, 18.1%, 80.7%
North-west, $758,117, 7.4%, 22.2%, 105.2%
Papakura, $657,767, 7.6%, 20.3%, 82.8%
Franklin, $621,098, 3.5%, 13.7%, 57.0%
Auckland region, $1,013,632, 6.1%, 15.9%, 85.5%
Hamilton, $518,387, 8.4%, 9.3%, 43.4%
Tauranga, $633,638, 7.0%, 28.5%, 31.6%
Wellington, $643,986, 5.6%, 17.7%, 21.0%
Christchurch, $492,766, 0.5%, 3.5%, 29.9%
Dunedin, $333,890, 3.1%, 11.5%, 16.7%
Total NZ, $612,527, 6.0%, 14.6%, 47.8%

QV full house price index for August 2016

Attribution: QV & CoreLogic release & tables.

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Barfoots chief says house price slowdown more apparent

The biggest residential real estate agency in Auckland, Barfoot & Thompson, said yesterday the signs of a slowdown in price increases had become more apparent.

Managing director Peter Thompson said: “August’s price increase was restrained, for both the average price and the median price.

“The slowdown is not so obvious when comparing August data with that for July, but when you look at the average for the previous 3 months it becomes more apparent. “The average sale price in August was $906,560. While this was up 4.5% on that for July, it was up only 2.6% on the average price over the previous 3 months.

“Our data shows that those claiming the average price is on the verge of topping $1 million are over-inflating where prices are heading. While prices continue to rise, for the past 5 months buyers have not been prepared to pay more than they believe is the market price. The same trend can be seen with the median price, which at $850,000 for August is up 1.2% on July’s, and up 2.5% on the average for the previous 3 months.

“Current price increases are relatively modest compared with what has occurred in recent years. The slowdown can also be seen when comparing August’s sales numbers, listings at month end and new listings with the average for these statistics for the previous 3 months. Sales numbers were down 9.2%, available properties up 6% and new listings remained at the same level.

“It has led to a small increase in the choice available for buyers. It all adds up to some heat coming out of the market.

“The continued rise in prices with lower sales indicates that new regulations requiring investors to have greater equity than previously, which the trading banks enforced at the start of August, has had a limited impact on prices but may have affected sales numbers.”

Mr Thompson said sales fell to 1003 in August – down 3% from 1034 in July, down 9.2% from 1139 in the previous 3 months, down 25.5% from 1388 a year ago. 347 properties (34.6%) sold in August for over $1 million, 109 (10.9%) for under $500,000.

The average price was $906,560 – up 4.5% on the $867,681 in July, up 2.6% on the $883,549 in the previous 3 months, up 10.4% on the $821,079 a year ago.

The median price was $850,000 – up 1.2% on the $840,000 in July, up 2.5% on the $829,500 in the previous 3 months, up 12.6% on the $755,000 a year ago.

The agency’s 1706 new listings were up 19.6% on the 1426 in July, up by 6 on the average 1700 over the previous 3 months and down 4% from 1777 a year ago.

The agency had 3151 residential properties available at the end of August, up 4.6% on the 3012 at the end of July, up 6% on the 2987 average of the previous 3 months, up 6.6% on the 2957 a year ago.

Mr Thompson said the real test of where prices are heading would come this month with the arrival of spring: “For the past 3 years, September’s average & median prices have exceeded those for August, with prices then continuing to increase to year end.”

Attribution: Agency release.

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