Houses in New Zealand slightly became more expensive in June, as the median price nationwide rose to $529,000 from $500,000 year over year, according to the Real Estate Institute of New Zealand (REINZ).
The figure represented a 5.8% increase in the same comparable period. However, the national median home price in June dropped 1.1% compared to the figure in May, according to the institute.
The current trend in New Zealand’s property sector somehow resembles a two-tier market, REINZ said. Its Monthly Housing Index also showed growth in terms of year-over-year comparisons, up 2.8%, as well as a 0.3% decrease on a monthly basis.
In Auckland, for instance, home prices climbed to $850,500 from $830,000 year over year. Excluding the city, median prices in New Zealand rose to $431,000 from $387,000. Analysts noted that the housing market currently serves as a liability for the country’s economy, amid a lack of supply in homes especially in Auckland.
Whether you are a home buyer or investor, a property lawyer in Wellington or Auckland could help you iron out the legalities of a purchase. This is particularly useful in cities such as Auckland, where home prices are advancing slower than the rest of the country.
In June, the city’s median home price rose just 2.5% year over year amid declining sales volume. In other parts of the country like Wellington, home prices have risen 11.4%. REINZ CEO Bindi Norwell said that this scenario highlights the existing low supply of homes against a high level of demand.
Housing supply remains a relevant subject in New Zealand, amid increasing home prices and lack of supply. For home buyers, do you plan to realise your dream of owning a home or wait until prices become more affordable?