This week, we look in-depth at The Real Estate Institute report for October 2020, as well as the Ray White sales results in November, and examine the reasons why the numbers continue to gain momentum in the real estate market.
The published numbers by The Real Estate Institute show that the median house price across New Zealand has increased by 19.8 percent, from $602,000 in October 2019 to a new record high median price of $725,000 in October 2020. This is one of the highest annual increases in a year where there was little to no expectation of price rises.
Several factors have driven these price rises, but supply and demand, along with low interest rates, are considered the key reasons for this high level of activity. There were four areas with price rises over 20 percent, including Gisborne (34.1 percent), Marlborough (26.8 percent), Otago (22.7 percent), and Wellington (20.8 percent).