NZ house prices rocket to new all-time highs

The REINZ has released its house price data for January, which revealed a 2.1% seasonally adjusted increase in values over the month, with values nationally surging by 11.8% year-on-year to a new record high:

The breakdown by region is shown below:

Outside of Auckland, seasonally adjusted house prices rose by 1.5% in January, with prices up 11.6% year-on-year.

Whereas Auckland’s seasonally adjusted median house price rose by 3.1% in November and up 8.4% year-on-year.

Sales volumes have also risen, with the number of residential properties sold across New Zealand rising by 0.9% (seasonally adjusted) in January from the same time last year:

REINZ’s commentary was bullish:

The number of properties sold in January across New Zealand was up 3.2% on the same time last year (from 4,459 to 4,603) making it the busiest January in 4 years…

For New Zealand excluding Auckland, the number of properties sold increased by 0.9% when compared to the same time last year (from 3,279 to 3,308) – also the highest for the month of January in 4 years.

In Auckland, the number of properties sold in January increased by 9.7% year-on-year (from 1,180 to 1,295) – the highest number of residential properties sold in the month of January since January 2016…

Bindi Norwell, Chief Executive at REINZ says: “Normally January is a quiet time of the year, and for a few regions that was definitely the case, however, overall the country had a strong start to the year with the most residential properties sold for the month of January in four years.

“Much of the increase in sales volumes is being driven by increasing confidence in the housing market which has been underpinned by a relatively strong economy, good employment rates and the low interest rate environment,” continues Norwell…

The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 7.0% year-on-year to 2,922 – a new record high.

The HPI for New Zealand excluding Auckland increased 9.1% from January 2019 to 2,924 another new record high.

The Auckland HPI increased by 4.4% year-on-year to 2,918 – the highest annual percentage increase in 33 months. It’s also the third positive annual increase in a row after 13 months of negative results…

In January the median number of days to sell a property nationally decreased by 6 days from 48 to 42 when compared to January 2019 – the lowest days to sell for the month of January in 3 years.

It is hard to believe that Jacinda Ardern’s Labour Government intends to make the housing situation worse by abandoning its ‘Kiwibuild’ targets.

Leith van Onselen

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