Real estate prices in the Super City are on the up and up following a short period of calm. Although the turnover of property during winter remained high, values were relatively static -- until now.
According to a report from real estate agency Barfoot & Thompson, the median sale price in Auckland during September went up 4.6 per cent on August's figure to $790,000 (the average is $836,275).
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Peter Thompson, the firm's managing director, says the last time a jump of this size happened was in June -- the end of a hot summer for real estate.
He says the latest price surge may be down to buyers getting in ahead of new regulations around equity ratios for investors, which came into force on October 1.
However, dark clouds are on the horizon for sellers as international buyers will be hit by new rules from November, and the Chinese government has put the squeeze on its citizens wanting to take money out of the country.
Word is the auction rooms are a little less frantic since foreign buyers were asked to provide their passport, IRD number and details of a local bank account.
Meanwhile, Thompson has a word of caution for those looking to sell. He says September's price rise might not be the start of a new round of increases, and that buyers may not be prepared to stretch their finances to secure a property this summer.
"The future direction of prices still remains at the crossroads," he says.
Slim pickings
It seems house owners are sitting tight, reluctant to list their homes for sale. According to realestate.co.nz, the number of homes listed for sale hasn't been this low since 2006, when the floating mortgage rate was an eye-watering 9.5 per cent, and the two-year fixed rate around 8 per cent.
Last month only 31,000 properties were for sale across the country, way down on the 58,000 available in April 2008. However, that was when the Global Financial Crisis (GFC) was starting to bite, and perhaps the figure reflects people selling their baches and trading down to reduce their liabilities.
But it can only mean one thing when the market is as tight as this -- sellers have the upper hand to command premium prices. And although it's easy to say "enjoy it while it lasts", it does mean that if you are thinking of selling, now couldn't be a better time.
Christchurch
Hayden Duncan, CEO of Harcourts, says the average sale price in the Garden City in September was $511,703, slightly up on August's $496,035.
He says a third of the firm's vendors are taking their properties to auction to tap into what he says is a buoyant market.