Link received Thu, 5 Feb 2015 at 9:18 a.m.
Comment: “Median property prices down in Dunedin and other centres just as Local Government New Zealand (LGNZ) are making plans to grab a bigger slice of your pie.”
### interest.co.nz February 5, 2015 – 07:00am
Want to see what movement in the NZ median house price excluding Auckland would look like? All is revealed here
By Gareth Vaughan
We all know that if you took the Auckland housing market out of New Zealand the overall housing market picture would look very different. Would the Reserve Bank have ever felt the need to introduce restrictions on banks’ low equity residential mortgage lending without Auckland? Very unlikely. And would the likes of Brian Gaynor be raising eyebrows with warnings that house prices could fall by up to 25% if it wasn’t for the Auckland market? Nope.
Just how big a driver Auckland is on national house prices is made clear in the table below.
Based on Real Estate Institute of New Zealand (REINZ) data, Auckland’s median house price rose $238,000, or 54%, in the six years from December 2008 to December 2014. Over the same time period the national median price rose $121,500, or 37%. But the national median price excluding Auckland rose just $50,000, or 17.5%.
Figures for the 2014 calendar year are perhaps even more stark. The REINZ Auckland median price was up $78,000, or 13%, last year to $678,000. The national median rose $23,000, or 5.4%, to $450,000. And the New Zealand median price excluding Auckland rose just $3,500, or 1%, last year to $335,000.
So if you take Auckland out of the picture, where according to REINZ about 38% to 40% of national monthly sales are made, the national median price barely budged last year. No wonder many people outside the City of Sails get so grumpy about the Auckland housing market and the Reserve Bank’s high loan-to-value ratio restrictions.
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