Property market records new highs

Nelson and Tasman are two of seven regions across the country to achieve a new record high median house price.

Real Estate Institute of New Zealand today released their annual data which showed both regions recorded a new median high house price with Nelson up to $830,000, and Tasman at $920,000.

The figures jumped from $675,000 in Nelson and $735,000 in Tasman last year – a 23 per cent and 25.2 per cent jump respectively.

Nelson had the lowest median days to sell in the country at just 21 days, compared to a national median of 29 days.

REINZ chief executive Jen Baird, says December was a solid close to a strong year for the New Zealand property market.

“House prices were considerably higher than December 2020, demand and sales activity remained firm, and there was a welcome increase in new listings through November and into December.

She noted signs of deceleration in annual price growth compared to previous months.

“While the market remains confident, the impact of rising interest rates, tighter lending criteria and changes to investor taxation restrictions are starting to shift dynamics.”

“In particular, the amendment to the Credit Contract and Consumer Finance Act (CCCFA) on 1 December 2021 — which requires stricter scrutiny of borrowers’ financial health — seems to have had an immediate effect.”

She says regional feedback shows a drop in buyer numbers, particularly first-time buyers, as a result.

“Over 2022, the impact of these changes and anticipation of further interest rate increases are likely to play out in the market, leading to a gradual slowdown in the pace of price growth,” Jen says.