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Source: ONE News -
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Median house prices in October were the highest they have been for 10 years in that partlicular month, the Real Estate Institute of New Zealand (REINZ) says.
Figures released by the industry body on Friday show a national median house price of $355,000, nearly 6% more than the $335,000 median recorded in October last year.
October's price is also up $5,000 on the month of September, and surpasses the national high of $352,000 set in November 2007.
The biggest increases were seen in Wellington, with median prices there rising 12.4% to $415,000, and in the Canterbuy/Westland region where prices rose over 6% to $310,000.
Median prices in Auckland rose 5% to $455,000.
REINZ says it also took less time to sell houses in during the month. The national median for days to sell was 31 in October compared with 47 in the same month last year and 33 in September 2009.
Regionally, houses were quickest to sell in Wellington, Canterbury/Westland and Otago, while the Central Otago Lakes district was the most sluggish, taking a median of 59 days to sell.
ASB economist Jane Turner says the quick sale of houses points to a lack of supply.
The only disappointing data, the institute says, was a decline in the turnover of houses, with 6,901 properties sold in October compared with 6,464 in September.
However, Turner says the level of turnover probably understates the level of demand.
"The low number of days to sell and rising house prices are symptomatic of a tight housing market, constrained by lack of supply," she says.
She says the pick up in demand reflects the appeal of low interest rates, the increasing number of migrants into the country, and fewer people leaving permanently.
A tight supply of houses was also being exacerbated by less house building over recent years.
Turner says the increasing momentum of the housing market will likely to test the Reserve Bank's patience which has been trying to avert what central bank governor Allan Bollard recently called a debt-fuelled cycle .
While the view is that a housing boom may be temporary, Turner
says the RBNZ could potentially be concerned by a shortage of
supply which could spill over into the rental housing market.
