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National Overview - April 2016

Harcourts MarketWatch
National Overview - April 2016

In March the average price paid for a house nationally reached the record high of $588,311.

It’s an 8% jump on the same time last year, and an 11.5% increase on February’s average price of $527,212.

Across New Zealand the total number of residential houses available to buy are down to the lowest levels in two years. There are currently 6,827 on Harcourts’ books, down 23.9% on the same time last year.

Harcourts NZ CEO Chris Kennedy says investors are back in the market and those no longer able to afford to buy in Auckland and Christchurch are looking to the rest of the country.

In Auckland and Northland the average house price rose to $940,246 – breaking all records for the highest average price ever achieved. A tightening in the overall number of houses for sale – down 4.6% compared to March 2015 – coupled with high demand due to migration and low interest rates, is pushing prices to new heights.

Prices are up by 10% in the central region, now sitting at an average of $392,585. Stock levels are down by a huge 40%, which means there are only 1154 residential properties to buy, compared to 1923 at the same time last year.

In Wellington, the average price has reached an all-time high of $437,848, up 17% on the same time last year. Written sales are up 26%, despite the overall number of residential properties available to buy down by 40% on the same time last year.

Prices and sales hit a year-long high in Christchurch in March, with the average house in selling for $545,689, up 4% on the same period last year and the figure is the highest house price in the area have reached in the past 12 months.

The number of house sales in Christchurch also reached a 12-month high of 523 in last month, up 11.3% on March 2015.

In the provincial South Island prices are sitting at an all-time high of $397,303, with stock levels down by 22%.

Mr Kennedy says an ongoing drop in supply, caused by a dip in new listings and a rise in sales eating into existing stock numbers, is pushing prices up around New Zealand.

“New builds are not keeping up and the regions are undoubtedly profiting from the demand in Auckland and Christchurch. Expect more to come.”

Chris Kennedy
Chief Executive Officer
Harcourts New Zealand

Jill and Keith at Harcourts