Record prices resulting from lack of properties

The property market sped through the festive season with December results out from the Real Estate Institute of New Zealand showing record prices, fast sales & low stock volumes.

North Shore sales volumes increased 52% in December with 540 sales for the month, producing a new record median price of $1,235,000, up 17.6% on December 2019.  The median days to sell reduced to 29.

Nationally stock volumes are half what they were in December 2018, yet the number of sales in December 2020 was the highest in a December ever.  The lack of choice fuelled by high demand & record low interest rates is driving urgency and confidence in buyers and adding pressure to prices.  This has resulted in New Zealand seeing a new record median house price for the fourth month in a row.

The residential housing market remains exceptionally strong and predictions are this will continue throughout 2021 despite the Reserve Bank’s scheduled introduction of tougher lending rules for investors in March.

Market update for North Shore market based on REINZ market statistics for December 2020, released 15^th January 2021.