Otago Property Investors Association Inc
The housing market continued to gain in momentum, adding to the positive numbers seen in the previous two months, according to the latest Mike Pero Mortgages/Infometrics Property Cycle Indicator.
The indicator, which ranges from minus 10 to positive 10 (positive figures showing an upturn in the market), climbed to a positive 7.30 in October, from 6.98 in September.
It is a sensitive indicator of the housing market and takes into consideration changes in the number of houses sold, changes in price and the time taken for houses to sell.
Mike Pero Mortgages has seen an increase of 40% more sales occurring over the last three months, compared to the same period last year, says chief executive Shaun Riley.
"The growth in house sales has increased rapidly."
The national median house price rose to $355,000 in October, its highest level on record, according to the New Zealand Real Estate Institute of New Zealand (REINZ).
Riley believes "this was partially the result of higher quality houses being sold".
The REINZ's stratified house price measure was still down 3.10% on its November 2007 peak.
The third measure of the indicator, the time taken to sell a house, has fallen to its lowest level since September 2007, seasonally adjusted.
"The average number of days to sell a property fell to 31 in October, two days fewer than in September," Riley says.
The two big north Island markets of Auckland and Wellington are leading the market, according to the indicator. Auckland lead, with a PCI (Property Cycle Indicator) of 8.79, up from 8.26 in September, while Wellington was not far behind with a PCI of 8.28, from 7.21 in September.
Otago made the biggest gain in the South Island, with a PCI of 3.75, up from 3.16 in September. The Canterbury/Westland PCI was 5.04, edging up from 4.91 in September; Southland's was 2.44 (up from 2.83) and Nelson/Marlborough was at 3.16 (up slightly from 3.08).