REINZ: House prices nationwide continue cooling

Canterbury prices increased 31.0% in September

Various levels of lockdown across New Zealand have influenced real estate market activity in September lending to mixed results.

Although median residential house prices nationwide were up 15.4% to $795,000 in September compared to $689,000 a year ago, the gain was 6.5% down on the month of August.

Seven from 16 regions reached new record median prices – the most since April 2021.

The median house price for New Zealand, excluding Auckland, increased by 23.1% from $585,000 in September 2020 to a new record of $720,000.

This figure marks an increase of 2.9% from August 2021 ($700,000) and indicates confidence remains in the property market after the easing of Covid alert level restrictions outside of Auckland.

The median house price in Auckland increased 20.4% to $1.150 million from $955,000 in September last year. However, this figure was down 4.2% from its record $1.2 million in August.

All Auckland districts show year-on-year median price growth and pockets show month-on-month growth.

The median house price in North Shore City was $1.33 million in September 2021 (up 2.7% on August 2021) and Papakura District reached $1.060 million, up 13.4% on August – a record median price for the district.

The seven regions that reached record median prices in September

• Bay of Plenty: increased 24.2% to $878,000, up from $707,000 in September last year. Additionally, Tauranga City ($990,000) and Whakatāne District ($695,000) reached record median highs.
• Hawke’s Bay: increased 31.6% to $770,000, up from $585,000 in September last year. Additionally, Central Hawke’s Bay District ($615,000) and Hastings District ($812,000) reached record median highs.
• Manawatū/Whanganui: increased 35.4% to $626,000, up from $462,500 in September 2020 and has had a record or equal price in 11 of the past 12 months. Additionally, Manawatū District ($720,000) and Tararua District ($500,000) reached record median highs.
• Tasman: increased 27.4% to $860,000, up from $675,000 in September last year.
• Nelson: increased 24.5% to $802,000, up from $644,165 in September last year.
• Canterbury: increased 31.0% to $660,000, up from $504,000 in September last year. Additionally, Christchurch City ($670,000), Hurunui District ($651,000), Selwyn District ($775,000), and Waimate District ($395,000) reached record median highs.
• Southland: increased 29.1% to $437,580, up from $339,000 in September 2020. Additionally, Invercargill City ($455,000) reached a record median high.

REINZ chief executive Jen Baird says September was always going to be a month to watch as the impact of the various Covid alert levels were assessed.

“What the data shows, is that confidence remains high, buyer demand is still strong and prices are proving resilient.

“Some regions are noting a drop in the number of first home buyers, in part due to rising prices.”

New Zealand, excluding Auckland, showed year-on-year growth of 23.1% and an increase of 2.9% on August last year, suggesting that as alert levels ease the market is beginning to see a lift, says Baird.

“The REINZ House Price Index reached a new national high of 4,088, showing the underlying value of property remains strong.”

Baird says demand suppression measures introduced this year, recent moves by the Reserve Bank to increase the OCR, and Covid-19 restrictions to real estate activity are creating headwinds for house prices leading to the pace of price rises slowing over recent months.