Median house price sets record $380,000 as spring sales roar

The median house price in New Zealand rose to a record $380,000 last month as sales jumped by almost a third compared to October 2011, the Real Estate Institute says.

Sales rose 32.6% to 6640 in October from a year earlier and were 17.5% higher than in September this year, the institute says in its monthly report. The median house price rose from $371,000 in September.

The REINZ Stratified House Price Index, which adjusts for the proportion of higher or lower-value homes sold, climbed 6.9% from October last year to a record high index level of 3495.1.

Auckland's median house price also set a new record, rising 2.9% to $530,000.

All regions recorded an increase in sales volumes from the same month last year, with the biggest gains coming for Central Otago Lakes jumping 54%, Northland up 52% and Hawke's Bay up 47.7%.

The national median days to sell improved to 32 days from 35 days a year ago. In Canterbury/Westland days to sell fell to 28, the second lowest since April 2007.

(BusinessDesk)

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9 Comments & Questions

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Surely one does not have to be an economist to come to the conclusion that something has to give.
When Auckand has high unemployment, low or nil wage increases and people borrowing huge amounts from banks on low interest, a major property correction is a certainty, not if, but when. Real estate agents and banks would have you believe this house buying frenzy will go on forever.
Our politicians will not intervene as they have numerous rental properties.

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I'm of the same opinion. Although I'm not sure banks or real estate agents would benefit from a collapse.

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I disagree -
Relative to our closest neighbour city v city Auckland is well under the market price of housing across the ditch. Sure anywhere in the boondocks in any part of the planet property is cheap, but as long as Auckland is a destination for immigrants both from within NZ and from elsewhere the prices will continue to rise. Remember the fat cat corporate robbers of the eighties hence why I wont put a single cent into shares or even the flaky finance industry. Bricks and mortar for me is all I'll tolerate and diversification means the same policy but buying property in other countries as the chance presents.

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Australian house prices are are insane peak bubble prices and any comparisons with them are dangerous.

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House prices in so many 1st world towns and cities are just unbelievable. How anyone can afford to live in Vancouver, Hong Kong, Singapore, LA, London etc. If I have to bail out of Auckland I'll be in a dog kennel.

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Re Auckland, if house prices were going to crash they would have done so during the World's worst recession since the Great Depression. Prices are rising against a neutral net migration number, rising unemployment and moderate wage growth, doesnt that tell you something? Auckland is one of the most desirable places to live in the World and propoerties for sale are for sale to foreign investors as well as Kiwis. There's a lot of money out there waiting to be put into play and some of it is finding iits way into the Auckland market. Get in, you'll be waiting a long time for house prices to fall in any meaningfull way.

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NZ hasn't yer experienced the full force of the greatest recession. We have been shielded by high commodity prices till now. House prices will start falling soon.

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So where to now Mr Wheeler - lift the interest rates to knock the the Auckland house market back to reality, - that's your riding instruction.

Collareral effect, screw the productive economy, destroy the exporters force them off shore, increase unemployment

It is a stark choice you have created Mr English

Auckland win's povinces loose, the young and keen leave for Australia

old codgers like me and dead beats and the odd Mr Gready will be all who are left here

this is seriously sad

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When the interest rates go back up the market will crash.
Thankfully this is an Auckland anomaly primarily caused by immigration.

If we want to fix the housing problems in Auckland we should address the immigration policies and foreign ownership laws.

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