National median property price hits record high
The residential property boom gathered steam last month, with the Real Estate Institute's median selling price hitting an all-time high.
The number of homes sold is heading up towards numbers not seen since the tail end of the last property boom.
The national median selling price was $383,250, up 4.3 per cent on November last year, which means it is now 9 per cent higher than it was at the height of the previous property boom, when it hit $351,500 in September 2007.
The latest surge in prices has mainly been driven by strong demand for properties in Auckland, Canterbury and Otago, with median prices in all three regions hitting new highs.
Prices in Wellington are also increasing, with the November median of $405,000 well up on last November's median of $383,250, but still slightly down on the all-time high of $415,000 achieved in October 2009.
However, while the number of homes being sold each month is increasing, numbers are still well down on those achieved during the last boom. Last month 7454 homes changed hands, and 6640 in October, compared with 10,774 homes sold in November 2003.
REINZ chief executive Helen O'Sullivan said demand for homes continued to outstrip supply in key markets like Auckland, in spite of a surge of new listings during the spring months.
"The activity in the Auckland market is now starting to see some spill over into other parts of the country, with increased buyer activity, although there are some remaining markets which are yet to see this effect," she said.
"The lift in national sales volumes to a five-year high and the new record medians in Auckland and Otago is indicative of the real estate market gaining in confidence.
"Volumes remain well below the previous market highs set in the period 2003-2006, indicating that tight supply remains the key factor behind increasing prices."
REGIONAL PRICES REINZ
Median Selling Prices November 2012:
Hawke's Bay $275,000
Central Otago/Lakes $425,000
Total NZ $383,250