Real Estate Institute of New Zealand (REINZ) data on the New Zealand housing market for November 2011 showed 6,008 unconditional sales for the month, up 870 sales (+16.9%) compared to November last year. The November figure is 1,001 sales higher than last month (+20.0%) and rose by 4.3% on a seasonally adjusted basis.

The national median house price rose by $8,500 to $367,500 (+2.4%) in November compared to October and is also up $7,500 (+2.1%) compared with November 2010. This is a new record median house price for New Zealand and exceeds the previous record of $365,000 reached in March 2011.

All regions recorded an increase in sales volumes during November compared to October, with Northland reporting the largest increase at 33.3% and Southland the smallest increase at 6.9%. Compared to November 2010, Auckland had the largest increase in sales volumes at 26.7%, followed by Northland (+25.9%) and Waikato/Bay of Plenty (+21.5). Only two regions recorded small falls compared with November 2010, with Otago down just 2.7% and Wellington down just 1.9%.

In addition to the national median house price reaching a new record level, the Auckland median house price also reached a new record of $490,000 in November. This exceeds the previous record high of $479,500 reached in April 2011. The REINZ Housing Price Index for Auckland is now at the same level that it reached at the peak of the market in July 2007, although most other markets tracked by the REINZ Housing Price Index remain below the peak. Of note in Auckland has been the rapid increase in the number of properties being sold at auction with almost 27% of unconditional sales in November being sold at auction, an all time high for the region.

For the month of November, Hawkes Bay recorded the highest lift in prices for the month (+11.3%), followed by Otago (+5.6%) and Auckland (+5.4%). Compared to November 2010, Canterbury / Westland recorded the highest lift in prices (+9.1%), followed by Hawkes Bay (+7.3%) and Otago (+5.6%).

"The lift in volumes for November is positive following the somewhat muted sales numbers for September and October", said REINZ Chief Executive Helen O'Sullivan. "While there may be some element of 'catch up' from these slightly quieter than expected months, there is a sense of buyers and sellers being ready to commit and clear the decks post Rugby World Cup before the end of the year. "

"While the data coming from the housing market is generally positive, the volume figures say recovery, not boom as some commentators have suggested. In 2007 the market reported just over 92,000 transactions in the 12 months to December; the 2011 year to date total is just under 56,000 transactions with the month of December yet to come, demonstrating that the level of activity is still well below "boom" levels. " "With that said, we would love to see increased supply of new homes coming through in the form of improved consent figures, as reports indicate that the lack of new stock remains a concern."

The national median 'days to sell' remained steady at 35 days in November, and is a five day improvement on the 40 days recorded in November 2010.

Otago again recorded the shortest days to sell at 30 days (no change), followed by Canterbury/Westland with 31 days (-1 day) and Auckland with 33 days (no change). Northland recorded the longest number of days to sell at 53 days (+3 days), followed by Central Otago Lakes at 51 days (-6 days) and Taranaki at 48 days (+6 days.) Over the past five years the median days to sell has averaged 41 days across New Zealand.

Further Data

Across New Zealand the total value of residential sales, including sections was $2.67 billion in November, compared to $2.15 billion in October 2011, and $2.20 billion in November 2010.

The breakdown of the value of properties sold in November 2011 is:

$1 million plus 227 3.8%

$600,000 to$999,999 796 13.2%

$400,000 to $599,999 1,596 26.6%

Under $400,000 3,389 56.4%

All Properties Sold 6,008 100.0%

The REINZ Housing Price Index rose 1.1% in November compared with October. The REINZ Housing Price Index recorded increases in all markets apart from Other South Island. Compared to November 2010 the REINZ Housing Price Index rose 2.6%, and the Index is now 2.3% below the peak recorded in November 2007 (see table and chart below).

Also of note is that according to the REINZ Housing Price Index, Auckland has now recovered to equal the previous peak recorded in July 2007, although most other markets remain below the 2007 peak, notably Other North Island.

REINZ Stratified Median Housing Price Index Chart

REINZ Stratified Median Housing Price Index Statistics

* CAGR is Compound Annual Growth Rate

* The Christchurch data needs to be treated with some caution due to compositional changes in the suburb mix caused by the earthquakes in the city.