wellington house prices maintain momentum in July

Latest data from the REINZ revealed that the property market continued to defy “expectations” in July, supported by pent-up demand and perhaps post-lockdown relief. REINZ CEO, Bindi Norwell, noted that activity during July was underpinned by strong levels of interest and engagement from all buyer levels, including first home buyers, investors and families looking to upgrade their property.

At a national level, the median house price recorded an annual increase of 14.8%. The national median house price was $660,000 in July, compared to $638,000 in June and $575,000 in July 2019.

​The Wellington region again recorded double digit price growth, recording a 10.6% increase in the median house price over the year to July, to $696,800.  This was also a marked increase over the June median house price of $685,000, meaning the Wellington region remained the second highest regional price, behind Auckland.

​Within the Wellington region, a record median house price of $695,000 was recorded for the Kapiti Coast District, following a 19.2% increase in the median price over the year. While Kapiti was the only region to register a record median price, the Carterton, Masterton and South Wairarapa districts all recorded sharp annual house price growth of 36.1%, 19.2% and 25.5% respectively.

​The rebound in sales in the Wellington region from their lock-down lows was maintained in July, recording a 2.1% increase from the June level and 22.8% increase from the level recorded a year earlier in July 2019. 
The REINZ note that July was the highest July sales count (764) for the region since July 2007.

The average days to sell fell by 6 days to just 29 days, reflecting a tight market. This is also reflected in tight inventory levels. The REINZ made the following observations with respect to the Wellington market:

• Many of the buyers are local looking for a permanent home, with approximately 20% looking at rental investment
• The desirability of the Wairarapa and the Kapiti Coast has increased in the last couple of months. The increase in interest likely reflects people looking to move out of Wellington for the lifestyle, especially after the COVID-19 working-from-home trend.

​All this points to cautious optimism in the market, in the midst of uncertainty in the wake of the Covid-19 pandemic. The lockdown has forced people to focus locally, which is highlighted by Bindi Norwell’s comment that there were strong levels of interest and engagement from all buyer levels. Bindi Norwell also noted that anecdotally August has had a great start, adding a note of caution now that Auckland has gone back into level 3.

Source: REINZ Monthly Property Reports