Property prices remain strong in Northland despite slowdown

According to REINZ, Northland median prices have increased annually by 18.2 per cent, reaching a new high on the REINZ House Price Index. Photo / Supplied

The latest property data has revealed February property prices are continuing to climb, with Northland reaching an all-time high of 18.2 per cent for median house prices.

While sales activity is down, demand remains steady and stock on the market is up, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ).

In Northland, median house prices rose from $659,000 in February 2021 to $779,000 in February 2022.

While stock increased 9.3 per cent annually, however, so too did the median number of days to sell – up to five days in February 2022.

This was the highest number of days to sell across all regions — equal only to Hawke's Bay and an increase of five days the same time last year.

REINZ chief executive Jen Baird said the latest data signalled the underlying strength of Northland's market, but that things were starting to steady.

"Concern around Covid-19 has impacted the numbers attending open homes and auctions — however, genuine buyers have still turned up or bid over the phone," Baird said.

"Vendors are maintaining positive expectations for sale prices and agents have reported more negotiation at auctions with reserves reduced to make the sale.

"Properties spent an additional five days on the market in February 2022 compared to February 2021 and uncertainty is the general feeling in the market, with vendors wary of possible price drops and buyers concerned about overpaying."

Baird said February saw fewer first home buyers in the market, with those who were active, moving with some caution around finances.

Investor numbers had also declined despite high demand for rental properties as median property price growth outpaced rent price growth.

In terms of residential property, the picture was less positive, with sales decreasing by 26.6 per cent annually in February, from 248 to 182.

This was however a 61.1 per cent increase compared to January when 113 residential properties were sold.

According to REINZ, it was the lowest February month sales count since February 2019 for Northland.

On the upside, there was an annual increase in total inventory levels of 9.3 per cent from 750 properties in February 2021 to 820.

The region also saw an annual increase of 22.5 per cent on the REINZ House Price Index at 4412, with the top sale for the region $4,460,000 in the Whangārei District.