Continued low listing numbers into the usually buoyant spring period translated to a slight moderation in house price inflation to 29.9% in October from 30.4% in September but sales in the latest month fell 21.7% compared with October last year, Real Estate Institute data shows.
The institute's house price index climbed for the 15th consecutive month and was up a third in areas outside of Auckland. Auckland, which remained at a higher level 3 lockdown setting than most of the rest of the country, saw its price index climb 25.7% year-on-year.
Only 7,190 houses changed hands, almost 2,000 less than last October, but that decline can't be attributed to the Auckland lockdown because sales excluding Auckland were down an even greater 22.5%.
Institute chief executive Jen Baird said stoking the market is the return of 'fear of missing out', particularly in the Auckland market.
Low inventory levels in the city, down 16.8% on last October, was also a key driver of pricing, she said.
Across the country, prices rose most in Manawatu/Whanganui, up 42.6% from October last year, while Southland prices rose the least at 23.4%.
Prices in the capital were up 31.9% in the year while Canterbury prices were up 38%, the second-strongest annual gain.
