Property prices increased in November amid continued supply pressure - REINZ

Property prices rose once again last month, as demand continues to outstrip supply.

The Real Estate Institute's (REINZ) house price index, which measures the changing value of property in the market, rose 27.2 percent in the year ended November to 4281.

The national median house price rose a seasonally adjusted 23.8 percent in the past 12 months to $925,000. The national median price excluding Auckland was $775,000, a 26 percent increase on a year ago.

"The market has settled back into its stride - returning to business as near-usual across the board," REINZ chief executive Jen Baird said.

"November shows an active market where property prices continue to increase, stimulated by demand as New Zealand prepared to leave alert levels behind."

Despite the steady growth, headwinds were gathering, Baird said, due to a combination of rising interest ratestighter bank lending, and government tax changes.

"While the longer-term impacts of these changes will play out over the coming months, the strength of the market suggests that the growth trend will continue - albeit with a more moderate trajectory."

The number of properties sold in November fell 18 percent when compared with the same month a year ago.

"However, there was a 12.4 percent increase from October 2021, proving a resilient market en route to recovery," Baird said.

At the same time, the number of properties available for sale rose by 5 percent to 19,260, the first increase in inventory levels in months.

"While the uptick is welcome, when the amount of inventory is compared to the number of sales, we see 11 of the 16 regions have 10 or less weeks of inventory available, suggesting that supply-side pressure on prices remains," Baird said.

The median number of days to sell a property across the country was 29 days, which was equal to a year ago.

November also recorded an increase in the number of properties sold at auction, with nearly a third of properties sold under the hammer, compared with just over a quarter a year ago.

"Vendors increasingly see auctions as a clean and effective method of selling that provides open market transparency in an uncertain market," Baird said.

The latest report from REINZ also noted that the proportion of properties sold across the country for $1 million or more had risen from 27.9 percent a year ago to 43.7 percent in November 2021.