If you have been planning to sell a property in New Zealand, the recent price growth may be a good indicator of doing so, based on figures from the Real Estate Institute of New Zealand (REINZ).
REINZ data showed that median home prices in the country rose to $550,000 in April, up 1.9 per cent year over year. The price increase likely drove more people to put their houses on the market, as evidenced by increased property sales during the month.
Record Price Growth
Out of 16 regions, the REINZ listed growth in 14 areas with some of them posting record price growth for April. Based on a year-over-year growth, homes in the Gisborne/Hawke’s Bay region continued to be the best-performing market with a 14.7 per cent annual increase. Properties in the Manawatu/Wanganui region rose 12.7 per cent, while those in Southland increased 11.4 per cent.
Homeowners in Auckland who plan to sell their property should probably wait a bit more, as the local market seems to have stabilised, according to REINZ chief executive Bindi Norwell.
The number of sold homes in Auckland fell 16 per cent as of May, while listings climbed almost 30 per cent. The weak demand from buyers has caused the decline in property transactions. This normally leads to cheaper prices due to a bigger supply of housing stock, but that may not be the case for the local market.
Despite prices dropping by 0.6 per cent in April, REINZ data showed that the median home price in Auckland is $850,000. This is higher than the national average, and obviously too expensive for some buyers.
When planning a property sale this year, it is important to choose a reputable real estate agency that specialises in residential property. Sellers should likewise consider an agent that can put their house in a prime spot in the market to boost the chances of closing a sale.