New Zealand's overheated property market has shattered another record, with house prices skyrocketing by more than 25 percent in the last year alone.
The latest data from the Real Estate Institute of New Zealand (REINZ) shows that in the 12 months to July 2021, median prices for residential property nationwide increased from $659,500 to $826,000.
That eye-watering 25.2 percent rise represents an average capital gain of $166,500 for Kiwi homeowners - more than double what the average full-time employee earns annually.
Auckland again reached a new median house price record - $1.175 million, a 28 percent lift on the $918,000 it was at 12 months prior.
"The region also saw a 2.2 percent increase from $1,150,000 in June 2021," REINZ explained in a press release.
"This growth was reflected throughout the region with six out of seven districts reaching record median prices - North Shore City ($1,375,000), Rodney ($1,240,000), Waitakere City ($1,100,000), Manukau City ($1,075,000), Papakura ($913,000) and Franklin ($885,000)."
Meanwhile Canterbury house prices also rose to heights never seen before in the region, and Manawatu-Wanganui and Southland equalled regional price records.
For New Zealand excluding Auckland, median house prices increased 23.3 percent to $687,500 year-on-year in July.
However REINZ says the last two months have shown "early indications that the rate of growth is starting to ease" - a sign the Government's property investor crackdown announced in March may finally be stemming the tide.
"It is too early to say whether this is the usual winter easing or if it is the impact of the Government initiatives, including signalled changes to the [official cash rate], starting to take effect."
Despite house prices continuing to rise, sales volumes nationwide were down in July 2021, decreasing by 11.7 percent compared to the same time last year - from 8135 to 7187.
The lack of supply is creating more competition, with the median days to sell down three days from July 2020 to 31 days in July 2021.
REINZ's House Price Index (HPI) - an analytic tool measuring total housing market activity - increased 30.6 percent year-on-year to 3937 in July. That was a new high and the highest annual percentage increase since records began.
The July HPI result also marks the 14th consecutive month there's been a new high, which REINZ says shows the continued strength of the market.
