NZ housing market ended 2019 with a bang

The REINZ has released its house price data for December, which revealed a 0.4% seasonally adjusted increase in values over the month, with values nationally surging by 12.4% year-on-year to a new record high:

The breakdown by region is shown below:

Outside of Auckland, seasonally adjusted house prices rose by 0.7% in November, with prices up 11.5% year-on-year.

Whereas Auckland’s seasonally adjusted median house price rose by 2.2% in November and up 3.4% year-on-year.

Sales volumes have also rocketed, with the number of residential properties sold across New Zealand rising by 9.5% in November from the same time last year:

REINZ’s commentary was bullish:

New Zealand rounded off the decade with the highest number of residential properties sold for the month of December in three years and price rises in 15 out of 16 regions…

Bindi Norwell, Chief Executive at REINZ says: “The property market had a solid end to the decade with a 12.3% increase in the number of properties sold in December 2019 when compared to December 2018. That’s an additional 22 houses sold each day around the country in December, which is not an insignificant number. With insufficient properties on the market to satisfy buyer demand, it suggests that buyers are being more definitive when it comes to purchasing as they are aware of the need to move quickly on properties and areas with high demand. This is backed up by the decrease in the median number of days to sell which is at its lowest point for 3 years.

“Looking around the country, 12 out of 16 regions saw annual increases in the number of properties sold – the highest number of annual increases in 3 months – with particularly strong increases in Auckland, the Bay of Plenty, Southland, Northland and Canterbury,” continues Norwell.

“Sales in Auckland were the highest for the month of December in four years.

It is hard to believe that Jacinda Ardern’s Labour Government intends to make the housing situation worse by abandoning its ‘Kiwibuild’ targets at the same time as ramping-up immigration by giving employers easier access to low-skilled migrants.

Leith van Onselen

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