"We're anticipating that real estate in the regions will remain relatively strong throughout 2018," says Geoff Barnett, National Manager of Century 21 New Zealand.
His comments follow REINZ today releasing their latest data showing median house prices across New Zealand rose by 5.8% in the year to December, with 13 out of 16 regions experiencing price increases, and three of those regions enjoying record prices. Excluding Auckland the annual increase was 6.6%.
Mr Barnett says Century 21's sales for 2017 also reflect some strong price growth in many parts of regional New Zealand and a lift in sales activity for many provinces.
"The likes of the Waikato, Central North Island, Manawatu, Kapiti Coast, and Wellington have seen some good price escalation in recent years. In 2018 we're still expecting to see growth in many areas, albeit generally we're moving to a more normalised market showing greater realism and sustainability."
He says December is traditionally a quieter month when it comes to real estate, and that the industry won't really get a feel of what's happening until the January and February numbers come through. However, the market generally continues to show some positive signs.
"The Reserve Bank is anticipating ongoing relatively low interest rates this year, with many fixed rates still well under five percent. What's more LVR restrictions have been softened somewhat which will help more first-home buyers to get into the market. It these kinds of things that will keep things bubbling along."
Mr Barnett says the underlying strength of the New Zealand real estate market continues to prove many commentators wrong.
"Rest assured, plenty of good opportunities remain for Kiwis when it comes to real estate in 2018," he says.
Geoff Barnett – National Manager, Century 21 New Zealand