Million Dollar Homes: The average New Zealand home price exceeds $ 1 million

House prices continued to rise hot in 2021, exceeding the million dollar mark for the average New Zealand home. Photo / Fiona Goodall, file

From Niva Chitock from RNZ

It was a record year for the real estate market in 2021, when the national average value of a home topped $ 1 million for the first time.

The year ended with an average price of USD 1,006,632 and a record-breaking annual market growth of 27.4 percent, according to the house price index of real estate data company CoreLogic.

This surpasses the previous record of 24.4 percent from 2003.

Nick Goodall, Head of Research at CoreLogic, said there has been continued strong demand for residential real estate over the past year.

“In general, we are seeing strong growth across the country,” he said.

All major centers were able to increase their property values ​​by at least 20 percent, with Christchurch posting the highest rate at 38 percent, a new regional record.

“Christchurch really stands out now, after years of relatively flat or minimal growth. (But) even growth of around 20 percent is an extraordinary rate, “said Goodall.

Auckland is the most expensive place with an average price of $ 1.42 million, closely followed by Tauranga and Wellington, which also have six-figure averages, at $ 1,139,186 and $ 1,125,729, respectively.

Goodall said initial signs were suggesting the market would slow this year, although house prices are unlikely to decline.

He said potential first home buyers may want to try provincial centers, which have a lower range of average property values.

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“At Invercargill, the average price is still less than $ 500,000.”

“Whanganui has seen exceptional growth, but the average home price is still below $ 600,000.”

Goodall reminded buyers that these numbers were averages and that there were still $ 400,000 worth of property in the main centers.

Nick Goodall expects the property market to slow this year, although a drop in property prices was unlikely.  Photo / included
Nick Goodall expects the property market to slow this year, although a drop in property prices was unlikely. Photo / included

“There’s a lot of information out there and it’s worth doing your research and then finding out what’s going on in your local market.

“The key is to understand your own finances.”

Goodall said speaking early with the bank or broker would help potential buyers see if they could be pre-approved.

“You can see where you are in the market and then go out and look at the properties.”

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