NZ house values up 3.3% annually, Auckland rises $46k in a month

New CoreLogic and Barfoot & Thompson data out on housing market. Photo / Getty Images

New Zealand house prices rose 3.3 per cent in the last year but Auckland's median shot up $46,000 in just a month.

The CoreLogic QV House Price Index out today showed values rose 1 per cent from October to November and senior property economist Kelvin Davidson said the annual growth rate was now 3.3 per cent.

Barfoot & Thompson, Auckland's biggest agency, said the city's median rose $46,000 in a month from October's $845,000 to $891,000 last month. Volumes were at their second-highest level this year, from January's slow 653 deals through to February's 474, hitting 963 in March when the weather was hot but then falling during the winter. By August they were back to 745, October 824 and last month 960 sale were recorded.

Figures published in the latest OneRoof Property Report show Auckland was one of the slowest markets in New Zealand, although there has been slight uptick in the last three months. OneRoof editor Owen Vaughan says: "Growth in Manukau has been strongest but Rodney is still dragging its heels."

OneRoof figures showed Omaha was the city's best performing suburb - up 16.9 percent year on year to a $1.625m median value - while Kumeu suffered the country's worst drops, due to new subdivisions and an increase in more affordable housing.

CoreLogic said Auckland's average residential value was now $1,038,477, down 1.2 per cent annually. Hamilton's was $596,912 up 5.5 per cent, Tauranga $760,560 up 6.5 per cent, Wellington $735,507 up 7.3 per cent, Christchurch $504,952 up 1.9 per cent and Dunedin $505,461 up 17.1 pr cent.

The outlook was somewhat uncertain due to next year's general election: "Unfortunately, they tend to create uncertainty for property," Davidson said.

He expects a more positive impact from the Government's announcement that it will borrow to build infrastructure.

But in the shorter term, Davidson said spring had been solid and the market "looks likely to build further momentum as we hit summer and move into 2020, most notably because of the eased mortgage serviceability tests used by the banks."

Low unemployment levels interest rates were having an effect and the Reserve Bank would feel comfortable with its decision no to loosen the loan to value speed limits, Davidson said.

Kiri Barfoot, a director of the agency, said buyers had returned in force to Auckland's housing market. Monthly price increases of this size were last seen when the market was at its strongest in 2016 through to the early part of 2017, the agency said.

The declining pool of properties on the market was contributing to price rises, she said. Last month, the agency listed 1517 new properties, its lowest number in November for 11 years.

Sales

At month-end, it had 3703 properties on our books, about a quarter lower than at the same time last year.

Barfoot & Thompson sold 44 properties for more than $2m and 322 for between $1m and $2m in November. It sold 103 places for under $500,000.

Late last month, Auckland Council's chief economist David Norman said the city's housing affordability has improved 26 per cent since mid-2015