Provisional housing market update

Provisional housing market update

August 2015, Auckland and Northland

Press Release: Harcourts

Provisional residential data from New Zealand’s largest real estate group Harcourts for the month of July shows average sale prices are up 25% on the same period in 2014 to $832,013.

The price boost comes on the back of ongoing strong demand that has offset any traditional winter slowdown in the region. That demand has also led to a healthy 54.1% increase in written sales, up to 621 last month from 403 in July 14.

New listings have dipped again, down 6.0% in July 2015 compared to July 2014, after last month’s spike of a 46.7% increase compared to June 2014. Whole overall inventory has again dipped to 1443 last month compared to 1732 in July last year.

Harcourts CEO Hayden Duncan says that lack of inventory will continue to impact on average sales prices as long as high demand, particularly in Auckland continues.

“It’s no secret that high demand continues to push up prices in the region. That has been a trend now for at least the past year, long before government announced LVR restrictions on investors, so it can’t be attributed to any last-minute panic buying by those trying to beat the law change.

“The crucial issue remains a general lack of housing stock. We have people reluctant to sell because they’re worried about not being able to buy elsewhere in the region, or they’re holding on to one property and buying another to make the most of healthy rental returns.”

ends

© Scoop Media