The Real Estate Institute of New Zealand's House Price Index (HPI) shows significant regional differences in house price movements in June.
Unlike median or average selling prices, the HPI adjusts for differences in the mix of properties sold each month, to give a better overall indication of price movements.
Across the whole of New Zealand, the HPI was up just 0.9% in the month of June, suggesting a substantial slowdown in the rate at which prices have been rising, with the HPI up 29.8% over the year to June.
However price growth was much weaker in Auckland than it was in most of the rest of the country.
In the Auckland region the HPI increased by just 0.3% in June compared to 1.3% for the rest of the country excluding Auckland.
Within the Auckland region, price movements in June ranged from a 0.8% decline in the central suburbs, to an increase of 2.9% in Rodney.
The Wellington region also posted very mixed results in June, with an overall increase of 1.8%. While still strong this suggests price rises have slowed significantly from the scorching annual rate of 42.8%.
Within the Wellington region, the HPI was up strongly in Wellington City at 3.7% in June, increased more modestly in Upper Hutt at 0.9%, but declined in Porirua -1.3% and was unchanged in Lower Hutt.
The biggest increase in June was Napier at 5.1%, followed by Tauranga at 4.1% while the biggest decline was in Porirua at -1.3% followed by Hastings -1.2%.
The table below shows the HPI movements in all major urban districts.
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REINZ House Price Index June 2021
26 Comments
I've noticed a lot of lower-priced properties in the area (Hastings) on the market lately. I have a property up for rent at the moment and I'm getting a surprising number of enquiries from people working in Napier because their current rental is being sold. I suspect higher-leveraged specuvestors are battening down and bailing from what they consider are their higher risk properties.
I follow the market here in Napier and this 5.1% monthly increase was a bit of a surprise. I thought things seemed to be "steady" although that is likely influenced by me observing mainly my and neighbouring suburbs and not the entire Napier market. Properties are still selling but my observation is that they are not moving nearly as fast as they were.
The House Price Index increase for Palmerston North City for 1 year is given as 61.2 per cent in the article's table.
This does seem rather a large increase.
TTP
Sounds like nobody really knows what anything is worth anymore. Everything is manipulated. The real estate industry is corrupt beyond imagination.
Sure just like my local Porsche dealer, prices are way to high and more than what I want to spend so they must be corrupt. The price is "Worth" what someone else is prepared to pay for it. Some stupid Mario Brothers game that was new and sealed in the box just got over $1 Million at Auction the other day, makes your house in NZ look like a bargain, its all relative.
Sorry to ruin your little story, but the corruption was a reference to dishonest and manipulative agent and agency practices, not the extortionate prices.
Slight difference there in that not everyone needs a Porsche.
If you can't buy a Porsche at least you can take the bus. If you cant afford rent then hopefully its not too cold out...
It must always be remembered that the buyer sets the price, not the real estate industry.
If no buyers are willing to pay a set price on a property then the price will drop.
Hi Brock,
No need to become too disaffected.......
The market can always be relied upon to determine values.
TTP
It's the ole religion of (manipulated) market forces and the belief in endless growth is forever ... until it's not.
4 and 5 percent increases for tauranga and napier are mostly catchup from a quiet previous 2 months. They could just as easily peg back next month
The gains in Tauranga have been unreal, still it was always going to be on the cards as its better than Auckland and people cannot wait to sell up and come here with money left in the bank in the process. Still has a way to go before its back to 4 and 5 percent increase PER YEAR that is was near pre-Covid.
Issue is finding work here in Tauranga... that's if you need/want to
It's just boomers moving down as they reach retirement and that sweet sweet welfare. If you still have all your teeth it's best to steer well clear of the place.
Brock
Come on, be positive just for once . . . boomers vacating houses in Auckland increasing availability for FHB.
Anyone know the methodology of the HPI that they can explain in an elevator pitch? Is it just a price aggregate on
any number of sales or is the volume of sales normalized in any way? Is it a hedonic index?
0.9% per month is still 11% per year! Did he just call that a substantial slowdown?
No it's not. 0.9% is 0.9% of an index. And I can guarantee you that most people have no idea how the index is constructed nor do they know its 'margin of error' in relation to actual market prices going at a point in time.
Slowing from 200km/h to 70km/h is a substantial slowdown.
It is not appropriate to drive 70k past houses
Why have you got $70k in the boot? Drug dealer?
Consider changing your denominator to Bitcoin.
i.e. house prices got crushed in the last year and the last decade, and likely the next decade.
Short term volatility of course.
The majority of NZers do not price houses in BTC because they buy / sell houses in NZD.
Imagine the screams at the changes in mortgage repayments if your payment is a fixed number of bitcoin per month but you earn real world money.. ie NZD.
I think the direction is clear.
Be quick.
Let's keep taking this down and get all Hard working Kiwis into there own home.
The time has come to take control.
Let's hope the red team make this happen.
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