25 percent in 12 Months! Yes, this is the latest statistic released by the industry’s governing body, the REINZ – that Auckland’s median house price increased by a massive 25 percent, from $920,000 in June 2020 to $1,150,000 in June 2021 – another new record for the City of Sales!
On the back of this news, Jen Baird, the newly appointed Chief Executive at REINZ said that price rises have continued to defy expectations, with the whole country seeing an uplift in median house prices when compared to the same time last year.
“Every region saw an increase in House Price Index (HPI) values compared to the previous month – and the three months prior – suggesting that the market will hold strong for a few more months yet,” she continued. “Those buyers hoping for a bargain over winter might be disappointed. We’ve talked about FONFA (the fear of not finding anything) before, but with less than 14,000 properties available for sale, this is becoming a real issue across parts of the country – especially when houses are selling as quickly as they are at the moment.”
Baird’s comments are backed up by the latest figures, which report that the number of properties sold in June increased by 29 percent, year-on-year (from 2,144 to 2,766), the highest for the month of June in 15 years. Compounding this situation is the dire shortage of houses that are currently on the market – down 33 percent from June 2020, the second-lowest level of inventory we’ve ever seen in New Zealand.
So, how are these statistics affecting the mood of buyers at our open homes?
Surprisingly, the expected winter slowdown hasn’t eventuated, with open home attendance continuing to defy seasonal trends. First home buyers remain active, especially in the ‘more affordable’ areas we operate in, even though the number of sub-$750,000 properties sold continues to fall. Investor activity has been varied, depending on the number and type of listings available on the market. However, anecdotal evidence leads us to believe that the recent changes that were implemented to put a brake on investor activity have only had a short-term effect on the public’s enthusiasm to put their money into property as a long-term investment.
Our auction rooms above Ponsonby Central are as busy as they have ever been. With a success rate of 92 percent of properties sold on the night (or prior), the team at Damerell Group leads the market in this specialist form of residential sales, and our sales figures continue to be the envy of competitors, which bears out our dominance and expertise in the Auckland market place.
Thinking about selling or curious about how much their home is worth - now is a great time to explore the opportunities in the market and beat the usual September Spring rush.