After setting new records in March, the Auckland real estate market has settled back for April with both lower sales volumes and median prices.
In the latest figures from the Real Estate Institute of New Zealand (REINZ ) as usual, Auckland is out of step and ahead of the rest of the country.
And, just a note to those of you who closely follow the figures each month, REINZ now reports on regional boundaries that align with those used by Statistics New Zealand.
This means that the REINZ data now separates out regions that were formerly reported together to give greater accuracy relative to Statistics NZ.
So, the following numbers are using the new boundaries and compare the month-on-month, year-on-year numbers throughout the new boundaries.
Starting with our local area, Eastern Beaches, the median slipped back from last month’s record high of $1,150,000 down 2.6% to $1,110,000 on the back of 113 sales. The median
is 5.7% up from the same month last year indicating that the settle in prices is very visible.
This is the lowest month on month annual movement since 2014. Sales of 113 are well down on last April’s 214 and are the lowest April figure for more than 10 years. Current listings on realestate.co.nz stand at 397.
For Auckland overall, the median was $854,500, down from last month’s new record of 905,000 and up a conservative 3% year-on-year.
There were 1775 sales, well down on March’s , 2655 and April 2016’s, 2666. Nationally, the median came in at $540,000, down from last month’s new record of $546,000, but still up 10.4% year-on-year.
Also, if you exclude Auckland from the national median, it rose from last month’s $430,000 to $435,000, and year-on-year, the rise is 13.7%. So, Auckland’s drop is really bringing down the national median.
In fact, three regions hit new record high median sale prices in April, Waikato (up 22.3% year-on-year to $489,200), Wellington (up 18.8% year-on-year to $537,000) and Otago (up 12.7% to year-on-year to $381,000).
Are we building enough new homes in Auckland? Well, I have taken a quick snap shot of net permanent and long term immigration into Auckland over the past three years and also the number of building consents issued for the same period.
The figures are from Statistics NZ, which at the last census determined that the average Auckland household occupancy was three people. So, not taking into account internal migration, in the year ended March 2015 there was a net migrant gain to Auckland of 25,987, and for year ended March 2016, 31,230 and 2017, it was 35,772.
Building consents issued for new dwellings for the same periods were 7940, 9566, and 10,199 respectively. So, dividing these figures by three and ignoring factors such as building
time frames etc, it shows we are not keeping up with the number of new homes needed in the region.
Not really news but I thought it showed some good, raw data worth sharing.
- Supplied by Total Focus Principal, Greg Roy areinz