15 Oct 2019

Real estate industry springs back with increase in house prices

9:55 am on 15 October 2019

The real estate market has sprung back into life, but national sales volumes were flat.

An auction sign outside a house for sale in Auckland.

Photo: RNZ / Claire Eastham-Farrelly

The Real Estate Institute's House Price Index, which measures the changing value of property, rose 3.6 percent to a record high in the year to September.

The median house prices across New Zealand increased 7.3 percent, to a record high of $597,000, over the year earlier.

Median house prices in Auckland rose 0.5 percent to $848,000, and sales volumes were up nearly 3.6 percent in the region over the year before.

The regions with the biggest increase in median prices included Manawatū-Whanganui, Southland, Taranaki and Hawke's Bay.

Those with the biggest price drops were West Coast, Northland and Nelson.

While the national volume of sales was flat, REINZ chief executive Bindi Norwell said it was the highest number of properties sold in a September month for three years.

"This suggests that we're starting to see the usual spring uplift and also that more confidence is starting to creep back into the market," she said.

Regions with the highest volume of sales growth included Tasman, Otago and West Coast.

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