Market Update – May 2021

House Price Rises Continue – Summary of REINZ report

Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ).

The Tasman region reached record median prices, once again, with a 21.2% increase from $701,500 in May 2020 to $850,000 in May 2021. Nelson (+20.8%) and Marlborough (+32.7%) also saw increases in median house prices year-on-year this month.

Highest number of houses sold for May month in 3 years

The number of residential properties sold in May across New Zealand was the highest number of properties sold in a May month for 3 years with 7,550 properties sold, a 1.3% uplift from April 2021 and an 81.4% increase on May 2020.

In May, all 16 regions saw annual increases in sales volumes. Tasman: +112.9% (from 31 to 66 – 35 more houses) with the biggest increase.

“It’s worth noting that some of the annual sales volume comparisons are still a little skewed by the impact of the COVID-19 Level 3 lockdown in May 2020 so it won’t be until next month that we get a clearer picture of how things are really going,”

WENDY ALEXANDER, REINZ ACTING CEO

Attendance at open homes eased slightly, however, interest from out-of-town prospective purchasers has remained strong. A shortage of available stock in the region has continued to put upward pressure on prices and resulted in a number of multi-offers being placed on homes. Sales of million dollar plus properties increased from 5.3% in May 2020 of the market to 17.6% in May 2021. Activity is expected to remain steady over the winter months before picking up again in spring.

“Looking forward, we would expect sales volumes to remain relatively stable over the winter months, however, if we don’t get more listings coming onto the market, it could be a very quiet winter indeed,”

WENDY ALEXANDER, REINZ ACTING CEO

Nelson/Marlborough/Tasman Region:

Compared to May 2020
• Median Price up 22.4%
• Sales Count up 55.3%
• Days to Sell decreased 29 day
Compared to April 2021
• Median Price down 2.1%
• Seasonally adjusted median price up 1.7%
• Sales Count down 6.4%
• Seasonally adjusted Sales Count up 10.3%
• Days to Sell increased 1 day

Source: REINZ