February ‘better than expected’

The Real Estate Institute of New Zealand Monthly Property Report for February indicates median house prices nationally are up 13.5 per cent. Photo Nick Krause

An owner of a real estate company says that the February property statistics are better than expected.

The Real Estate Institute of New Zealand (REINZ)’s Monthly Property Report for February indicates that median house prices nationally are up 13.5 per cent compared to the same time last year – from $780,000 in February 2021 to $885,000 in February 2022.

Auckland’s median residential property price rose 8.2 per cent annual, from $1,100,000 in February last year to $1,189,000, down 0.8 per cent on January.

The number of residential property sales fells 32.8 percent in February, from 8324 in February 2021 to 5597. The total number of properties available for sale nationally increased 47 per cent.

The month’s property prices continue to climb but now at a more moderate pace, REINZ says. Sales activity remains down, demand remains and stock on the market is up.

Tim Kearins, owner of Century 21 which has an office in Somerville and another in Flat Bush, says the real estate statistics are “better than most would’ve expected”.

“That can only help autumn, as will the easing of controversial lending rules which pulled the rug on so many buyers over summer,” Kearins says.

He was referring to the Credit Contract & Consumer Finance Act (CCCFA).

“Summer started with the CCCFA changes taking effect. It required banks to conduct ultra-conservative assessments on all new borrowers, with new mortgages all but drying up for three months. Last week’s announcement that the Government is making some significant tweaks to the CCCFA gives the coming months a timely boost,” says Kearins.

Kearins says that, against the odds, February showed that overall property prices continued to climb “albeit at a more moderate pace”.

“Let’s not forget that despite plenty of doom and gloom, February saw six regions and 23 territorial authorities achieve record median prices. It is a much better end to summer than most had anticipated.”