Boost for top-end properties

REINZ has reported that there were 7416 dwelling sales in November, up 6.5% on the same time last year and up 12.2% on October.

Auckland had the largest increase in sales volume, up almost 20% on October, with the strongest surge in West Auckland. That was followed by Otago, with 17.6%.

The national median price reached a new record $455,750 in the month, up 7.2% on 2013 and 6% from October.

Chief executive Helen O’Sullivan said the data showed buoyancy returning to parts of the market.

Auckland, Wellington, Canterbury/Westland and Waikato/Bay of Plenty all reported new record median prices.  Auckland’s reached $670,000, up from $640,500 the previous month.

Manawatu/Wanganui recorded the largest percentage increase in median price compared to November 2013, up 11.7%, followed by Hawkes Bay with  10.3% and Central Otago Lakes with a 9.2% increase. 

“Commentary from around the regions suggests that the ‘top end’ of a number of regional markets are performing well, with the middle and lower ends doing less well,” she said.

But she said a closer look at the data showed properties selling for more than $1 million were experiencing the most price growth, and an increasing share of sales.

"While those at the other end of the scale are seeing much lower price growth (under 4%) and flat to declining sales volumes.  Further, on a seasonally adjusted basis the median house price has increased by 3% over October, compared to 6% for the raw data.  For Auckland the difference is even more marked, with a seasonally adjusted increase of just 1.3% compared to 4.6% for the raw data. This suggests that the top end of the market is driving the overall rise in the national and some regional median prices, while those dwellings in the lower deciles are seeing less price growth and a lack of buyer capacity which may be related to the LVR restrictions currently in place.”

Dwellings took 34 days to sell in November, the same as October.  Compared to November 2013, the median number of days to sell was three days longer.