Auckland house prices have largest drop since 2010

 

 

It appears the Auckland housing market is continuing on its downward trend. 

According to the latest figures from Real Estate Institute (REINZ), median house prices in Auckland have fallen by 3.2 percent year-on-year to $850,000 - which is the biggest recorded price drop since 2010.

In contrast to Auckland, prices rose in 14 of New Zealand’s 16 regions for the year to October, leading to the median house price for New Zealand, excluding Auckland, to reach a record price of $440,000 (an 8.5% increase).

Stats Table - October 2017.jpg

 

The only other region across the country to experience a fall in the median price year-on-year, was Nelson, which saw a decrease of 6.8% to $447,500 – the biggest drop since April 2012.

Bindi Norwell, CEO at REINZ says: “As we’ve seen for some months now, prices across the country have continued to increase, albeit at a slower rate than the increases we’ve seen in some regions for the last couple of years. Waikato is now the sixth region in the country to have exceeded the half a million dollar mark at least once – something, that a few months ago, we predicted would happen shortly.

“The Auckland Region’s decrease of 3.2% year-on-year is predominantly the result of a large number of apartments being sold in the old Auckland City boundary which has therefore brought the median price down for the entire region. Auckland City’s median fell by 17% to $850,000 the lowest price it’s been for 16 months. Interestingly, Franklin District prices increased 16% year-on-year to $737,000 and North Shore City remains New Zealand’s only million-dollar plus city,” she continues.

“Looking at the REINZ House Price Index (HPI) for the legacy Auckland City it only decreased 0.8% year-on-year, whereas the median for the same period fell by 17%, highlighting that the drop in median price is not as dramatic as a first glance would suggest. This is because the HPI considers the mix and value of the property sold, not just the sales price,” points out Norwell.

In terms of individual regions, the ones with the highest growth year-on-year were Gisborne/Hawke’s Bay (up 15.5% to 2,330), Tasman/Nelson/Marlborough/West Coast (up 11.2% to 2114) and Southland (up 11.3% to 2365).

One of the biggest year-on-year decreases across the board would have to be auctions. The number of properties sold by auction continues to decline across New Zealand with 869 auction sales in October – down 42% on the same time last year, but up 4% from last month. Auctions now represent only 15% of all sales nationally. 

In Auckland, which traditionally sees a large portion of sales sold by auction, 464 (28%) of all properties sold in October were via auction – this is a decrease of 44% in comparison to October 2016 but an increase of 8% month-on-month indicating a return of positivity to the Auckland market.