“June saw continued growth in prices in Wellington reaching $685,000, up 10.5% on last year. Record prices were achieved in Carterton District $565,000 and Lower Hutt City $665,000. New listings in the Wairarapa decreased 4.6%, whilst new listings in Wellington increased slightly by 1.1% annually. However, total inventory decreased 17.5% year-on-year and with only 11 weeks’ total inventory available, it is likely to be pushing up prices in the region. There are still lots of first home buyers around and more investors are coming back into the market which is pushing up demand even further. In Wellington City, a 91-block apartment came onto the market and 40 apartments sold on the opening night. There have also been quite a few sales from off-the-plan town houses. Many expats that are coming back into the country are looking to buy and want to get back into the market. Banks are making it hard for second and third homeowners, increasing the time it takes to approve finance applications from 5 to 10 days. The market will continue to be busy over the coming weeks as people who are usually on holiday overseas, are focusing their attention on home renovations, downsizing or upsizing. It is expected that market activity will level out at some point. Prices are still good so people are selling but once more stock comes onto the market, demand should level out.”
REINZ Regional Director
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