REINZ Residential Press Release - Real Estate Institute of New

News Release
14 April 2015
Auckland Marches On
Summary
•
8,803 dwellings sold in March 2015, up 20.3% on March 2014 and up 27.6% on February
•
Highest number of sales in March since 2007, and highest for any month since May 2007
•
National median price of $475,000, up $35,000 on March 2014 and up $45,000 on February
•
A rise of 8.0% in the national median price, from $440,000 in March 2014 to $475,000 in March 2015
•
National median price excluding Auckland is flat compared to February, at $350,000, and up $5,000 compared to March
2014
•
A rise of 13% in Auckland’s median price, from $637,000 in March 2014 to $720,000 in March 2015
•
A new record of 2,267 dwellings sold by auction in March, 604 more than for March 2014
•
Auctions in March 2015 representing more than 25% of total sales for the first time, with almost 50% of Auckland’s sales
by auction
REINZ, the most up to date source of real estate data in New Zealand, announced today that there were 8,803 dwelling sales in
March 2015, up 20.3% on March 2014 and up 27.6% compared to February. This the highest March sales volume since 2007.
The national median price for March was $475,000, an increase of $35,000 or 8.0% compared to March 2014 and an increase of
$45,000 or 10.5% from February 2015. Excluding the impact of the Auckland region, the national median price was flat
compared to February at $350,000 and $5,000 (+1.4%) higher compared to March 2014.
Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne says: “March is the strongest sales month of the year,
with almost 1,400 more sales than for any of the past 12 months. While the increase in the number of sales is more or less
spread across the country, the movement in the national median price is almost entirely an Auckland effect.”
“Auckland has posted a record number of auction sales in March, with almost one in two sales by auction. Our data shows that
on a suburb-by-suburb basis auctions sell for a premium compared to other sales. We also see in the data a noticeable spike in
the number of sales over $1 million in Auckland. These two effects explain, at least in part, the jump in the national median and
Auckland median prices for March – although the underlying demand pressures remain and supply continues to be restrained by
low numbers of new listings.”
“Across the rest of the country, sales volumes and median prices are far better balanced, with a number of regions reporting
good sales numbers, good listings and plenty of activity. The national median price, excluding Auckland, has remained at
$350,000 for the past two months, indicating that supply and demand are far more balanced outside of Auckland.”
Sales Volumes
REINZ data shows there were 8,803 unconditional residential sales in March, a 20.3% increase on March 2014 and an increase of
27.6% from February. On a seasonally adjusted basis the number of sales rose 2.9% from February to March, indicating that
March sales were higher than would normally be expected for this time of year.
All regions apart from Central Otago Lakes recorded an increase in sales volume compared to February, with Auckland recording
the largest of 56%, followed by Taranaki with 50% and Southland with 39%. In comparison with March 2014, all regions
recorded increases in sales volume, with Waikato/Bay of Plenty recording the largest, of 41%, followed by Central Otago Lakes
with 27% and Hawkes Bay and Manawatu/Wanganui with 23% each.
Prices
The national median house price rose $45,000 (+10.5%) to $475,000 compared to February 2015 and by $35,000 (+8.0%) in
comparison with March 2014, with eight regions recording an increase. On a seasonally adjusted basis the national median
house price increased 5.3% compared with February and rose 8.3% compared to March 2014.
Excluding the Auckland region, however, the national median price was steady compared to February at $350,000 and rose
$5,000 or 1.4% compared to March 2014.
Seasonally Adjusted Median Prices
New Zealand
Auckland
Wellington
Canterbury
Waikato/BOP
Compared to February
Seasonally
Median
Adjusted
Change
Change
10.5%
5.3%
6.7%
2.2%
2.7%
3.5%
2.9%
1.9%
-1.4%
-1.2%
Compared to Mar 2014
Seasonally
Median
Adjusted
Change
Change
8.0%
8.3%
13.0%
13.1%
5.3%
6.5%
3.5%
3.0%
-2.6%
-2.1%
Central Otago Lakes recorded the largest percentage increase in median price compared to March 2014, at 21%, followed by
Auckland at 13.0% and Taranaki at 11%. Compared to February, Central Otago Lakes recorded the largest percentage increase
from February, at 13%, followed by Auckland at 7% and Canterbury/Westland at 3%.
The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can affect the median price, is
9.5% higher than in March 2014, at 4,340.9. The Auckland Index rose 20% compared to March 2014, the Christchurch Index 5%
and the Wellington Index 4%.
Days To Sell
Dwellings took a median of 32 days to sell in March, nine days less than for February and one day fewer than for March 2014.
Eight regions saw an improvement in the number of days to sell compared to March 2014, with Manawatu/Wanganui recording
an improvement of 11 days, Central Otago Lakes eight days, and Taranaki and Waikato/Bay Of Plenty with five days.
Auckland. Canterbury/Westland and Otago recorded the shortest median days to sell in March, at 30 days. Northland recorded
the longest, at 68, followed by Southland at 47. Over the past 10 years the median days to sell in March has averaged 35 across
New Zealand.
Auctions
There were 2,267 dwellings sold by auction nationally in March, representing 25.8% of all sales and an increase of 604 on the
number sold by auction in March 2014. The percentage of homes sold by auction in the 12 months to March was 19.1% (14,659
by number), compared to 20.5% (16,127 by number) for the year ending March 2014.
Transactions in Auckland again dominated the auction market in March, representing 78% of the national total of auction sales.
48% of all dwelling sales in Auckland were by auction, compared to 41% in March 2014. Sales by auction in Waikato/Bay Of
Plenty accounted for 8.0% of the national total, Canterbury/Westland 9% and all other regions combined for the remaining 5%.
Summary Auction Statistics for March 2015
Total Auctions for Month
Auctions as % of Total Sales
Total Auctions for Year Ended…
Auctions as % of Total Sales
Annual Growth in Auctions %
Breakdown by Regions…
Auckland Region
Waikato/BOP Region
Wellington Region
Canterbury/Westland Region
Rest of NZ
Source: REINZ
Mar-15
Feb-15
Mar-14
2,267
25.8%
1,272
18.4%
1,663
22.7%
14,659
19.1%
-9.1%
14,055
18.6%
-14.5%
16,127
20.5%
21.0%
77.6%
8.3%
2.1%
8.6%
3.4%
70.4%
9.0%
1.9%
12.6%
6.1%
75.3%
6.2%
2.5%
11.6%
4.4%
Further Data
Across New Zealand the total value of residential sales, including sections, was $5.381 billion in March, compared to $3.801
billion in February and $4.069 billion in March 2014. For the 12 months ended March 2015 the total was $42.600 billion. The
value of sales recorded in March is a new record, exceeding the previous record by $590 million. The breakdown of the value of
properties sold in March 2015 compared to March 2014 is:
March 2015
$1 million plus
$600,000 to $999,999
$400,000 to $599,999
Under $400,000
All Properties Sold
1,023
2,126
2,204
3,450
8,803
March 2014
11.6%
24.2%
25.0%
39.2%
100.0%
597
1,616
1,947
3,155
7,315
8.2%
22.1%
26.6%
43.1%
100.0%
March 2015 is the first time that sales of $1 millon-plus properties has exceeded 1,000 in number and that sales of $1 million
plus properties have exceeded 10% of all sales in a single month.
There were 295 more (+9.4%) sales under $400,000 in March 2015 compared to March 2014, compared to an increase of 1,448
sales (+20.3%) for all price brackets between the two periods.
REINZ Stratified Median Housing Price Index
The REINZ Housing Price Index rose 6.7% compared with February to sit at 4,340.9. Auckland rose 4.6%, Christchurch 0.8% and
Wellington 1.4%. For the 12 months to March the Auckland Index rose 20.2%, the Christchurch Index 5.0% and the Wellington
Index 3.8%. The National Index increased 9.5% compared to March last year.
Index Level
1 Month 3 Months
5 Years
From
(CAGR)
Peak
New Zealand
4,340.9
6.7%
6.5%
9.5%
5.8%
New Hi
Auckland
5,760.0
4.6%
11.0%
20.2%
11.0%
New Hi
Wellington
3,646.8
1.4%
3.1%
3.8%
1.2%
-0.8%
Christchurch
3,894.4
0.8%
2.5%
5.0%
6.1%
-2.3%
Other North Island
3,543.9
3.4%
3.3%
5.5%
2.2%
New Hi
Other South Island
3,818.6
0.3%
3.1%
3.1%
2.9%
-0.5%
Sections
5,198.8
0.2%
6.3%
4.6%
2.6%
-8.8%
*
*
CAGR is Compound Annual Growth Rate
The Christchurch data needs to be treated with some caution due to compositional changes in
the suburb mix caused by the earthquakes in the city
----1.
12 Months
ENDS
-----
Deciles: For analysis, REINZ breaks real estate sales into 10 price bands to compare trends in prices and sales volumes across the
market.
For more real estate information and market trends data, visit www.reinz.co.nz. For New Zealand's most comprehensive range of listings for
residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory
website.
Editor’s Note:
The monthly REINZ residential sales reports remain the most contemporary and up-to-date statistics on house prices and sales in New Zealand.
They are based on actual sales reported by real estate agents. These sales are taken as of the date that a transaction becomes unconditional,
up to 5:00pm on the last business day of the month. Other surveys of the residential property market are based on information from Territorial
Authorities regarding settlement and the receipt of documents by the relevant Territorial Authority from a solicitor. As such, this information
involves a lag of four to six weeks before the sale is recorded.
The REINZ Monthly Housing Price Index is calculated using a technique known as stratification, which provides an averaging of sales prices for
common groups of houses. This approach is considered to provide a more robust analysis of actual house price trends and was developed in
conjunction with the Reserve Bank.
The REINZ Monthly Housing Price Index is based on a value of 1000 in January 1992, the first month for which electronic information is
available. Changes in the index represent movements in housing prices, where the mix of sales between the groups is held constant and the
index is more likely to reflect genuine property price movements.