Auckland median price down, national median price up

According to the REINZ data, Auckland’s median price fell by $20,000 (2.6%) from June’s median of $755,000 to hit $735,000 in July.

While this was a slight decline, the median price is still up by $125,000 (20.5%) from $610,000 this time last year.

This means that, over the last year, Auckland easily recorded the largest percentage increase (21%) in median price of all the regions.

Further, the Auckland region’s overall median price fall was not consistent throughout the region.

Central Auckland and North Shore median prices fell by 9.8% and 0.2% respectively, but median prices in most other areas rose.

Meanwhile, the national median price rose by $15,000 (3.3%) from $450,000 in June to $465,000 in July.

This was an increase of $49,000 (11.8%) on the July 2014 median price of $416,000.

Sales were also up nationwide, with an increase of 6.3% from June to July, and nine regions recording increased sales volumes compared to June.

In Auckland, sales were up 11.0% compared to June, which indicates that sales volumes in the SuperCity were stronger than in the rest of the country.

REINZ chief executive Colleen Milne said the volume of sales across New Zealand had been exceptionally strong for the middle of winter.

She pointed out that there had been very strong year-on-year sales growth in the top half of the North Island and Central Otago Lakes in particular. 

“Backing this is strong anecdotal evidence of Aucklanders buying in these regions as owner occupiers and investment properties.”

Limited inventory remained a significant problem in Auckland, with less than 10 weeks supply available, Milne continued.

“There is an emerging problem of available properties in Northland and Waikato/Bay of Plenty, with a 50% fall in inventory for Northland over the past 12 months and a fall of 60% in Waikato / Bay of Plenty.”

In Westpac chief economist Dominick Stephens' opinion, the REINZ data for July was generally strong.

“The seasonally adjusted number of sales rose to an eight-year high, while the average time to sell dropped to an eight-year low. The nationwide stratified price index rose 1.1% for the month, to be up 14.9% on a year ago.”

Stephens said that, with the ongoing exception of Wellington, prices rose in most of the broad regions.

This was particularly notable in the “other North Island” group where prices had shown some real strength in recent months, leaving them up 9% on a year ago.

“This fits with the growing number of anecdotes that housing demand from Auckland, for both owner-occupied and investor properties, is now radiating out to other centres such as Hamilton and Tauranga,” he said.