Property Market Update
It’s been a strange year for property prices across the country. Depending on where you live or where your investment properties are, you either had a good year of positive growth or negative especially for the Auckland wider area.
But with all the ups and downs in the property market this year the median house prices across New Zealand increased by 8.2% in October to a new record high of $607,500, up from $561,500 in October 2018 – the first time the median house price for the country has crept over the $600,000 mark, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
This in itself is a massive milestone for New Zealand showing positive growth and hope for the future in the property industry after much gloom this year.
Unfortunately, on a negative note Auckland has had all of the heat taken out of it’s own market and hasn’t recovered since March of this year. Each month since March has seen the average asking price in Auckland drop compared to last year.
But like any good property investor especially if you are holding long term, you know that this is the decline phase in the property cycle. This year has seen uncertain times for property prices in Auckland. But still after 10 years of growth we all knew it wouldn’t last so no need to run for the hills.
Who knows how far the Auckland market will drop and for how long until we see prices start to increase again. They will increase, it just might take longer than we want but its about sticking it out for the long term.
On the other hand, property prices across the country have been increasing and doing well over the last 6-12 months.
Wellington reached a new high average asking price an 11 percent increase to $669,200, that’s a $67,000 jump on October 2018 according to Trademe.
Canterbury hit a new high in October, finally hitting the $500,000 mark for the first time. Great to see growth there especially after all that has happend, it will definitely put some heat back into the market. The prediction is for a strong 2020 year in Canterbury, lets hope.
Bindi Norwell, Chief Executive at REINZ said “October was a strong month price wise, with record median prices recorded in six regions and a record equal in Canterbury, Additionally, the country saw a new national record median price of $607,500 – the first time the median house price of New Zealand has exceeded the $600,000 mark. This is the highest number of regional record prices we’ve seen for the country in 23 months.
Bay of Plenty $620,000
Hawke’s Bay $535,000
NZ excl. Auckland $520,000
New Zealand $607,500