Describing the REINZ HPI as ‘the gold standard’ in New Zealand house price analysis tools, Bindi Norwell, Chief Executive at REINZ says
The REINZ HPI takes many aspects of market composition into account, and thus provides more accurate results. When applied to the September data, the HPI indicates that housing market value nationwide year-on-year has lifted 3.6%, down in Auckland by -0.8% and increased outside Auckland by 7.6%. Southland remains in top spot in the 12 month ending percentage changes. Manawatu-Wanganui and Gisborne/Hawke’s Bay came second and third respectively for annual percentage movement. “The importance of the HPI is well highlighted by the Otago Region this month.
The median sale price increased 19.6% since last year, the third highest of all the regions. This suggests a market where value growth is very strong. However, the same region had the fifth worst annual growth in HPI at 7.2%. Sample composition changes such as size of property or underlying value of properties sold can change statistics purely based on price, such as a median. However, because the underlying value of each property sold is taken into account by the HPI, such sample changes have little effect on HPI results. Clearly, the Otago region dwelling value growth has been moderate when compared to other regions, a fact that would have remained hidden to those monitoring statistics without access to the HPI.”
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