NZ house prices bounced back in February

By Leith van Onselen

The REINZ has released its house price data for February, which revealed a 0.8% seasonally adjusted monthly rise in the national median house price, with prices also up 7.1% year-on-year:

Outside Auckland, seasonally adjusted house prices rose by 2.0% in February, with prices up 8.5% year-on-year.

Looking at the major cities, Auckland’s seasonally adjusted median house price rebounded by 3.0% and was up by 3.9% year-on-year. Christchurch’s (Canterbury) rose by 1.9% in February and was up 4.2% year-on-year. Whereas Wellington’s median house price was down 0.2% in February but was up 3.6% year-on-year:

Sales volumes have also found a bottom following a prolonged period of falls, rising by 1.6% year-on-year in seasonally adjusted terms across New Zealand:

Auckland’s sales volumes have also rebounded after falling heavily:

Finally, here are the sales by price point:

As you can see, sales have lifted at the higher-end but fallen at the lower-end.

Commenting on the results, REINZ chief executive, Bindi Norwell, noted:

“Median house prices increased in 14 out of 16 regions across New Zealand during February 2018 compared to February 2017, including a record high in the Hawke’s Bay. The only regions not to experience an increase were the West Coast and Gisborne which saw decreases of 10.7% and 3.1% respectively…

“Auckland’s median price while continuing to slowly creep upwards, is clearly showing signs of moderated growth rather than the double digits we saw throughout 2016 and 2017. This is far more positive for the region as we know double-digit increases are not sustainable in the long term”…

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Comments

  1. Like a poor neglected sibling, they see our silver medal in debt excellence and take it on themselves to try to win some attention. Sad.

  2. IS THE NEW ZEALAND LABOUR LED GOVERNMENT LIKELY TO FAIL WITH HOUSING ?

    Kiwibuild likely to add only 9,000 homes over four years | Kiwiblog

    https://www.kiwiblog.co.nz/2018/03/kiwibuild_likely_to_add_only_9000_homes_over_four_years.html

    Stuff reports:

    The Government’s KiwiBuild programme could add as few as 9200 extra properties to New Zealand’s housing stock over the next four years, an economist says…. read more via hyperlink above …
    .
    .
    Rodney Dickens says section prices are the key to solving the housing affordability problem, not higher density around transport hubs. He warns against force-feeding in areas that won’t deliver the intended outcome … Interest Co NZ

    https://www.interest.co.nz/opinion/92556/rodney-dickens-says-section-prices-are-key-solving-housing-affordability-problem-not

    By Rodney Dickens*

    Maybe reflecting vested interests and complacency, National’s housing policies did nothing to solve the affordability problem.

    In the case of Auckland this is evidenced by section prices having increased 72% since the first tranche of Special Housing Areas was approved in 2013.

    Labour is adopting a broader and more hands-on approach to addressing the housing affordability problem including proposing some policies that have the potential to address the most pressing problem: excessive section prices. … read more via hyperlink above …
    .
    .
    Demographia International Housing Affordability Survey … Media Release | Scoop News

    http://www.scoop.co.nz/stories/PO1801/S00070/demographia-international-housing-affordability-survey.htm

    … concluding …

    … New Zealand global leader restoring housing affordability …

    The co-authors of this Survey, Wendell Cox and Hugh Pavletich, have short commentaries within the Introduction section.

    Within his commentary, Wendell Cox outlines that the principal reason for concern about housing affordability, is its impact on the cost of living and therefore the standard of living.

    New Zealander Hugh Pavletich briefly outlines the massive evolutionary political progress underway in his country, since the time of the release of the 2005 1st Annual Demographia International Housing Affordability Survey ( full schedule accessible via http://www.PerformanceUrbanPlanning.org ).

    Housing has been a major issue these past 4 elections.

    A Labour-led government won the recent late 2017 election, with a comprehensive housing policy … that includes …

    ‘Remove barriers that are stopping Auckland growing up and out

    Labour will remove the Auckland urban growth boundary and free up density controls. This will give Auckland more options to grow, as well as stopping landbankers profiteering and holding up development. New developments, both in Auckland and the rest of New Zealand, will be funded through innovative infrastructure bonds.’

    Labour has a proud tradition as the ‘Party of Reform’ in New Zealand.