11 Nov 2021

Median house prices up $100k on September's REINZ figures

11:23 am on 11 November 2021

House price growth remains strong with continued demand driving up last month's national median house price by $100,000 on September.

Housing in Mount Victoria, Wellington.

Housing in Mount Victoria, Wellington. Photo: RNZ / Dom Thomas

October's Real Estate Institute's (REINZ) House Price Index that measures the changing value of house prices rose 30 percent year-on-year.

The national median house price rose a seasonally adjusted 10 percent in October, to $895,000 from September's $795,000.

Volumes were down 21 percent on the year earlier amid the continuing lockdown measures in place to slow the spread of Covid-19 in the community. However, the number of sales in October were up 19 percent on September's, driven up by the Auckland region.

Auckland saw 85 percent more houses sold in October than September, despite the region's strict lockdown.

The strength of the market was reflected in other data released earlier today, which showed investor confidence, particularly in Auckland, was rising in line with house price growth.

REINZ chief executive Jen Baird said activity had slowed in other parts of the country, but expected to pick-up.

"It is expected that sales activity across New Zealand will continue to rise in the coming months, as restrictions ease further, travel limitations lift and those who previously held back listing their property do so," Baird said, adding that demand remained strong.

"Government measures to temper investor demand and recent moves by the Reserve Bank to increase OCR (the official cash rate) are causing headwinds for house prices. However, the long-term impacts are yet to be seen."

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