December 2017 National Market Watch

The latest national residential property figures from Harcourts NZ show a more active than usual finish to 2017.

The average national house price in December was $618,459, up 3% on the same period in 2016. The total number of new listings around the country also rose, by 5.4%, when compared to December 2016.

Harcourts NZ CEO Chris Kennedy says post-election activity and the Reserve Bank’s easing of LVR restrictions caused something of a late flurry in the market for 2017.

“December is generally a pretty quiet month with people’s minds on other things, but this year we’ve seen plenty of life in the market right till the end of the year.

“That’s an encouraging sign for 2018. As is the fact that average prices around the country have generally stayed stable, or risen. That should encourage more people to list and keep generating more market activity,” Kennedy says.

House prices rose in almost every region in December. The two most notable were Wellington where the price rose 9% to $507,712 and the Central region, taking in Tauranga and Hamilton, where the average price rose a healthy 13% to $529,205, compared to December 2016.

Central region had a particularly busy December with an almost 11% increase in listings, and a 7.7% increase in written sales year on year.

In Auckland the average sale price rose 5% to $1,007,380 compared to December 2016, while the number of sales was on a par with last year.

The number of auctions around the country has fallen during 2017, as, Kennedy says, buyers hold to their belief that auctions are best in a strong market.

“That is something we will continue to work to change this coming year,” he says. “I think it’s doing buyers a disservice to not try and change that belief.

“The crucial thing sellers should remember is that in an auction campaign, they always retain control. They are under no obligation to sell for less than their reserve.”

Chris Kennedy, CEO
Harcourts New Zealand

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