Earlier this week the REINZ released residential property statistics for June, revealing a 9.2% increase in the national median house price from the level prevailing in June 2019. The national median house price was $639,000, compared to $620,000 in May and $585,000 in June 2019.
The Wellington region recorded a 10.5% increase in the median house price over the year, to $685,000. This was the second highest regional price, behind Auckland.
Within the Wellington region, record prices were achieved in Carterton District ($565,000) and Lower Hutt City ($665,000). Prices increased from their June 2019 levels in all areas.
The number of sales in the Wellington region rebounded from their lock-down lows, following the move back to Alert Level 1 on 8th June. The average days to sell of 34 days was similar to a year earlier, but remains low from a historical perspective reflecting a tight market. This was also evidenced by tight inventory levels. The REINZ made the following observations with respect to the Wellington market:
- There are still a lot of first home buyers around and more investors are coming back into the market which is pushing up demand even further
- In Wellington City, a 91-block apartment came onto the market and 40 apartments sold on the opening night. There have also been quite a few sales from off-the-plan town houses
- Many expats that are coming back into the country are looking to buy and want to get back into the market
- Prices are still good so people are selling but once more stock comes onto the market, demand should level out.
