With median house prices up by 11.8% in January, the first month of the new decade marked a milestone in a remarkable 100 consecutive months of year-on-year median house price growth, according to Real Estate Institute of New Zealand (REINZ).
Thank you for reading this post, don't forget to subscribe!Back in October 2011, the median house price for New Zealand was $359,000; 100 months later the median house price was $615,000 – a 71.3% increase.
Bindi Norwell, Chief Executive at REINZ says: “Having house prices increase for 100 months in a row across the country is staggering. But as with every story, there’s always two sides, and for home-owners they are likely to be pleased with the capital growth of their property – particularly if they’re planning on upgrading in the short to medium term, but for many people it shows just how unaffordable buying a house has become.
“Although, with the low-rate interest rate environment we’re operating in, a lack of properties being put up for sale and a number of regions seeing record median prices over the past 12-18 months, it’s not entirely surprising to see this level of price growth,” she continues.
“If economists’ predictions are right, we’re likely to see this trend continue for a number of months,” she continues.
“What this does demonstrate though is that we still need to increase housing supply to keep up with demand, and that as a country we need to continue to look to innovative models to help resolve this issue,” continues Norwell.
Looking into the date in more detail, has revealed that the growth has been led by different regions over the last 100 months (9 years); and some regions have led the growth more frequently than others.
“Back at the end of 2011, much of the growth was the result of significant house price increases in Marlborough, Tasman and Otago, but as we moved towards the end of 2012 and right through to the end of 2015 the growth was led by Auckland and Canterbury,” says Norwell.
“However, over the last three years, the Manawatu/Wanganui region has featured strongly – which will come as no surprise to anyone living in the region, as has Southland and Hawke’s Bay/Gisborne to a lesser extent,” concludes Norwell.
(All information and content in this article is courtesy the Real Estate Institute of New Zealand (REINZ))