Sales volumes up by almost 25% year-on-year to November 2012
Latest figures from the Real Estate Institute of New Zealand (REINZ) show that home sales across New Zealand are up almost 25% year-on-year to November 2012, and median prices are at a record high of US$383,250, up 4.3% for the same period.
Auctions also played a bigger part in the figures, comprising more than 20% of all November sales across the country and almost 40% in Auckland.
According to REINZ’s Helen O’Sullivan, the sales rise is being driven by increased demand. She added that despite the surge in new listings, demand continues to outstrip supply in key markets such as Auckland.
The activity in Auckland is also now starting to spill over into other parts of New Zealand, although there are some remaining markets that are yet to see this effect.
In addition, more buyers are turning to auctions to maximise prices, especially the Auckland market, which is increasingly characterised by the rise in the number of auctions.
According to O’Sullivan, this signifies a change in the way both buyers and sellers are approaching the market. ‘What we do know is that most properties that sell by auction sell for higher prices and faster than other properties.’
All regions recorded year-on-year increases in sales volume, with Central Otago Lakes recording an increase of 45.9%, followed by Otago (38.7) and Auckland (28.9%).
In addition, all regions, with the exception of Hawkes Bay, also saw month-on-month sales volume increases, with Otago rising 36.6%, Manawatu/Wanganui up 19.4% and Central Otago Lakes increasing 18.1%.
The national median house price increased by US$3,250 from October to November, up 0.9%, figures from REINZ show. Auckland’s rose 1.9% month-on-month and 10.2% year-on-year to November 2012 to a new record of US$540,000. In addition, Otago also recorded a new record median price of US$258,000, up US$18,000 (7.5%) on October.
There were 1,539 homes sold by auction across the country in November 2012, which comprise 20.7% of all sales, up from 909 in November 2011. Transactions in Auckland dominated the auction market, representing 73.7% of the national total of auction sales.
By Rodel Ambas Jr.
21 December 2012