REINZ’s Property Market Report for December 2012

kettle boiling real estate property market

The market’s getting hot, but it’s not quite at boiling point.

The Real Estate Institute of New Zealand released its December Property Market Report this morning. I haven’t had a look at last month’s events as I’ve been too full of Christmas ham and trifle to think straight. It’s worth sharing REINZ’s data therefore – and doubly so as it provides valuable insight into not just last month but all of 2012.

Some of the more interesting factoids to emerge include:

  • We’ve hit a new national median house price record: at $389,000 this is up 9.6 percent on December 2011.
  • 74,000 houses were sold during 2012, which marks the highest number since 2007 – the height of our most recent real estate boom – and a 21% increase on 2011.
  • Auctions are becoming more and more popular. In 2012, 68% more sales were conducted under the hammer. Auckland saw an 87% increase. Unsurprising, as their hot property market makes it worth sending one’s house to auction to see how high buyers are willing to go.
  • As always, the real excitement occurred in two regions: Auckland and Canterbury/Westland. In the case of the latter, you can bet your sweet bottom dollar Christchurch is providing more of the action than Hokitika.
  • Home buyers looking for a friendlier environment might want to look at Hawkes Bay, whose median value is down 6.8% on December 2011, or Southland which has dropped 4.08%. Auckland and Canterbury/Westland, surprise surprise, made the biggest price jumps – 10.45% and 8% respectively.
  • Finally, for all the talk of the nation finding itself in a rapidly inflating housing bubble, just half the twelve regions have higher median house prices now than in December 2007. The fact one of those happens to be Auckland – who made up half the total value of house sales last month – is what’s pushing the nationwide median upwards. Which isn’t to say it’s not worth keeping a close eye on.

There are plenty of properties for sale below the median, funnily enough, and you can find a tonne of them on our website.

You can also check out all the REINZ data, including region and suburb info, by clicking here.

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