New Zealand Property Update January 2020

Property market update January 2020

We are in the height of summer - typically a busy time for real estate in New Zealand.

The latest NZ property report from realestate.co.nz shows that the national average asking price hit a record high for the second month in a row, reaching $710,393. And, although there was a small rise in the number of homes listed for sale compared to December 2019, a shortage still remains across the country when compare with this time last year.

Despite an increase in activity in the middle of the North Island - this shortage in the number of homes for sale and increased asking prices indicate that it is currently a seller’s market.

If you are looking to get on the property ladder, this is a key time to check in with our Mortgage experts to make sure you are in a good position to make an offer on your next home.  

Here are some key insights from this month’s NZ property report:

  • The report shows that January was a busy time for sellers in a few regions across the country, with a focus on the middle of the North Island. There were increases in new listings across Otago, Southland, Marlborough and the Central North Island regions, which is good news for those looking to buy in these areas.
  • Despite low stock in all regions, increased activity in the middle of the North Island could be signalling a market shift, says Vanessa Taylor, spokesperson for realestate.co.nz. “When we see new listings increase, it tells us that there is more activity in those areas than there was a year ago – this could be a clue that the tides might turn on the current seller’s market.”
  • The average asking price in Auckland, which dipped back to $875,476 in May 2019, hovered between the low to mid $900,000s throughout last year. Last month we saw this trend of peaks and troughs continue, although prices are still marginally below what they were in January 2019.

Average house asking prices for January 2020

There were five all-time asking price highs since records began 13 years ago. The average asking price across New Zealand went over $700,000 for the first time at the end of 2019. Prices appear to continue rises into the new decade, with the national average asking price increasing to $710,393 in January 2020, a marginal increase on December 2019’s high of $703,780.

Vanessa says it will be interesting to watch what happens to the national average asking price in 2020.

“We often see the national average fluctuating quite a bit in response to what is happening around the country, so we will be waiting to see if the price holds above $700,000 or drops back down to the mid to high $600,000s that we saw throughout 2019,” says Vanessa.

Otago, Southland, Marlborough and the Central North Island also hit record asking price highs in January 2020. These all-time highs were consecutive monthly records for both Southland and Marlborough who also hit record highs in December 2019.

Comparison of house asking prices in January 2020 for regions across New Zealand

 

Region

Asking price January 2020

Year on year increase

National

$710,393

2.2%

Otago

$497,127

13.4%

Southland*

$386,210

16.3%

Marlborough

$581,106

16.5%

Central North Island

$536,704

9.0%

*Record highs for the second consecutive month
Source

Auckland housing market remains tight, but prices down on the same time last year

The average asking price in Auckland, which dipped back to $875,476 in May 2019, hovered between the low to mid $900,000s throughout last year.

Auckland average property asking prices

Source

Check in with the mortgage experts

If you are looking to get on the property ladder, release equity from your home, or re-mortgage. Complete a free mortgage health check with our experts

Mortgage health check

 

Monday, February 10, 2020