Median house price sets record $383,250 as monthly sales boom

Auckland house prices just keep on climbing

The median house price in New Zealand set a record for a second straight month, reaching $383,250 in the strongest sales volume in five years.

Sales rose 24% to 7454 in November from a year earlier and were 12.3% up on October, according to the Real Estate Institute. The median price climbed 4.3% from the same month last year.

Auckland's median house price rose 1.9% from October to a record median price of $540,000. Otago's median price rose 7.5% to a record $258,000 and in Canterbury/Westland it matched its record $345,000 last reached in August.

"Housing turnover has picked up steadily over the past year, as confidence has returned to the housing market underpinned by expectations of low interest rates and gradually improving household confidence," ASB economist Jane Turner says.

"Demand continues to outstrip supply, and is placing upward pressure on house prices. "

The REINZ Stratified House Price Index, which adjusts for the proportion of higher or lower-value homes sold, rose 7.3% from November 2011 to a record high 3544.4.

The national median days to sell fell to 32 to 33 days in October.

Across New Zealand the total value of residential sales, including sections was $3.62 billion in November, compared to $3.15 billion in October and $2.67 billion in November 2011.

(BusinessDesk)

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2 Comments & Questions

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This is going to be an inconvenient issue Labour / Shearer will be trying to wrangle with their build 10,000 homes a year policy.

When will the MSM ask them for specific details, and not just swallow the "castles in the air" populist rhetoric as being easily achievable?

Or should we ask the guy with the GCSB tape?

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House price inflation is a disaster for the average person. Existing home owners are no better off because whatever more they get for their house the more they will pay for the next.
Rates, based on house values, will increase dramatically, along with many other costs.
The only people to benefit are house investors, like most of our politicians are, as this is a way of reducing their personal tax bills and taking advantage of the tax-free capital gains.

This proves to me that the Reserve Bank policies of keeping inflation under control has to be a complete and utter failure.
John Key and his merry men sit on their hands and pat themselves on the back at the extra money they have made out of their rental house investments.

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