House sales hit 6-year record with November rebound: REINZ

National house sale volumes hit a six-year record with a big November rebound, according to the Real Estate Institute which announced a rise of almost 18 per cent in the number of properties traded last month compared with October.

"The number of properties sold in November across New Zealand increased 17.8 per cent from the previous month – the largest October to November increase seen in six years," REINZ has just announced this morning.

"The number of properties sold in New Zealand excluding Auckland increased 19.4 per cent per cent month-on-month and in Auckland it increased 13.9 per cent month-on-month.

"All regions, except the West Coast, saw sales volume increase in comparison to October," it said.

The national median New Zealand house price rose 1.9 per cent from October's $530,000 to $540,000 last month. Auckland's median rose 3.8 per cent from $848,149 to $880,000.

But it took a day longer to sell a place in November compared to last November because the median number of days to sell rose by one day from 32 days to 33, REINZ said.

"The number of properties sold by auction across New Zealand declined [from 1771 in November 2016 to 1217 in November 2017], down 31.3 per cent on the same time last year, but up 38.9 per cent from last month. Auctions now represent 18 per cent of all sales nationally."

Last week, Quotable Value said uncertainty over the new Government and its housing policies did not appear to have dented the market in November.

Bindi Norwell, REINZ chief executive, said: "After a difficult winter and a slow start to spring, the real estate industry has experienced a lift in optimism and activity, with increases in the properties sold in 15 out of 16 regions across the country when compared to the previous month."

The QV House Price Index showed nationwide residential property values for the November year increased 6.4 per cent compared to just 3.9 per cent in the October year.

Values rose by 3.6 per cent during the past three months compared to the three months to October when the market slowed to 0.9 per cent growth.

In Auckland values remained relatively flat - holding or rising slightly in some areas and dropping in others. The former Auckland City Council suburbs also saw values rise 1.6 per cent year on year and 0.7 per cent in the past three months, QV said.

Auckland City East rose well above average for the region, up 3.3 per cent year on year and 1.8 per cent over the past three months, QV said.

Values dropped 1.1 per cent for North Shore City in the year to November but rose 1 per cent over the past three months, according to QV.

Auckland's biggest agency, Barfoot & Thompson, which has more than 40 per cent of the market, also noticed a November rebound. Sales numbers increased by close to 20 per cent and average and median sales prices remained firm.

"They were small signs, but it indicates the Auckland market is holding firm and buyers are returning," said director Kiri Barfoot.

"There are certainly no signs of a general market retreat.

"At 757 sales in the month we had the highest number of monthly sales since August and November's sales were 9.7 per cent higher than the average sales number for the previous three months.

"Both the average price at $913,244, and the median price at $830,000, were right in line with what we have been achieving over the previous three months.

"While those numbers are down on their equivalents in November last year, that was a time when the market was close to reaching its peak.

"This November's trading is a sure sign that at current values buyers are returning to the market," Barfoot said last week.

READ REINZ RELEASE HERE: