REINZ stats shows an increase in the median house price of 2.9% across New Zealand when compared to the previous month. With Auckland showing an uplift of 6.4%. This is when comparing the sales data from February to January. Hawkes Bay and Wellington shows an increase of 6%. Canterbury also up 4.5%.
Auckland’s median property prices may appear strong compared to the previous month, but January often reflects post-holiday market conditions rather than long-term trends. A more meaningful comparison with November 2024 suggests that overall, the market remains relatively stable. However, certain areas are beginning to show renewed momentum, signaling potential opportunities for discerning buyers and investors.
Anecdotal evidence would suggest that auction rooms are back to a steady pace, albeight with less houses being auctioned in mid March than late Feb(reported by interest.co.nz). I am wondering if more properties are bypassing the auction rooms and being listed by negotiation more often as housing stocks remain high.
On the horizon
We as mortgage advisers do get to see a lot of what might be possible in terms of lending coming through in its early stages. In terms of cost of funds and credit rules, both are heading in a direction more favorable for borrowers. This can be positive initially but ultimately leads to higher house prices. However this property cycle will be a little different to past ones in that we envisage the debt to income ratios will pose an anchor at some point. Depending on the speed of any increases in price – at a guess this could be more of an issue 6-12 months from now.
Compared to last year
If we look a little deeper into the REINZ, most places show a lower median price this February compared to last February. However my personal picks of properties which actually are in positive territory this February compared to last February(with larger sample sizes) below;
- Wellington City 9.4%+
- Kapiti Coast 6.2%+
- Christchurch City .3%+
- Napier City 6.5%+
- Franklin District 7%+
