As the total pool of properties available for sale in New Zealand falls to record lows, there is continuing pressure on house prices, with the country seeing a new record median house price for the fourth month in a row, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most accurate real estate data in New Zealand. 

At one point last month in Omaha, there was only one property for sale, compared to the usual 70 to 100 listings in the suburb. Experts believe the Covid-19 pandemic is causing a shift in lifestyles. There are currently five properties up for sale. 

Precision Real Estate agent, Di Balich, said low interest rates and the inability to travel overseas had caused unprecedented demand for baches in the area.

In December 2020, Auckland’s median house price increased by 17.4% from $886,000 at the same time last year to $1,040,000 a new record high – the fifth consecutive month where Auckland has seen a new record median house price. In total 11 regions saw record median prices during December 2020.

“Currently we have half the inventory levels we had back in December 2018. Therefore, there just isn’t enough choice for people looking to purchase, which has meant that there is significant pressure being placed on house prices in most parts of the country. When you add into the equation the fact that there are record low interest rates, people are more willing to compete to secure the property they want,” says Bindi Norwell, Chief Executive at REINZ.

“This lack of choice and high levels of confidence is also causing properties to be sold at the quickest pace we’ve seen in 17 years. The median number of days to sell a house is now just 27 days, showing how people are moving quickly to secure ‘good’ properties,” she points out. 

“Auckland city remains New Zealand’s most expensive district in the country, with December seeing the city reach a new record median house price of $1,280,000 – hovering extremely close to the $1.3 million mark. Not far behind, was North Shore City on $1,235,000 and Rodney District on $1,005,000, showing how unaffordable the Auckland region is becoming, especially for first home buyers.