According to the latest REINZ data, Auckland’s median price rose from $625,000 in May 2014 to $749,000 in May 2015.
Auckland’s price rise affected the national median price which increased by 7.0%, to $460,000, over the same period of time.
If the impact of the Auckland region was excluded, the national median price went up by 2.6%, to $349,000, between May 2014 and May 2015.
REINZ chief executive Colleen Milne said the data showed that Auckland continues to dominate the real estate market in terms of price movements.
While the Reserve Bank’s LVR measures might slow the rate of price increase, it will take some months for this to take effect, she said.
“At this point, the inventory situation in Auckland remains very tight and the number of sales by auction continues at near record levels.
“Sales volume across Auckland is expected to continue to increase if supply allows.”
However, Milne said the 30% LVR restriction for Auckland investors might direct investors’ attention from Auckland to the regions.
“Agencies across the upper North Island - from Whangarei through to Bay of Plenty - are reporting increased interest in residential properties from Auckland investors.”
She added that there are increasing indications that Auckland investors are active across the country, particularly in the Waikato, Bay of Plenty, Manawatu and Nelson.
Around the rest of the country, the REINZ data showed strong sales volume growth.
Six regions, besides Auckland, recorded more than 20% increases in sales in May this year compared to May last year.
Milne said Otago, Northland and Central Otago are all showing firm upward price trends, while Waikato/Bay of Plenty, Taranaki, Wellington and Hawkes Bay are showing some signs of firming prices.
“The prospect of more relaxed lending policies from the Reserve Bank will be heartening for first home buyers in these regions.”
Westpac chief economist Dominick Stephens said the REINZ data showed the housing market has continued its recent upswing, largely on the back of a red-hot Auckland market.
He described the May rate of Auckland house price increase as “frenetic” – due to the price index rising now up 25.6% on a year ago, which is the fastest annual increase since 1994.
But Stephens warned that it's worth keeping in mind this data gives no insights into the likely impact of the RBNZ’s new LVR restrictions and government’s new tax measures on the housing market.
This is because both sets of measures were only announced in mid-to-late May.
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