Bay of Plenty's median house price rose to a record high in October, amid a month of record-breaking prices across the country.

According to latest Real Estate Institute of New Zealand data, there has been a 16.2 per cent increase in median house price in the region from $620,000 in Oct 2019 to a record high of $720,500 in Oct 2020.

The data also shows median house prices across New Zealand increased by 19.8 per cent from $605,000 in October 2019 to a new record median high of $725,000 in October 2020.

BOP REINZ Regional Director Neville Falconer says median house prices in the Bay of Plenty region increased 16.2 per cent year-on-year in October 2020.

Rotorua and Tauranga have again seen record median prices of $580,000 and $810,000 respectively.

'Sales volumes increased 6.1 per cent when compared to the same time last year to 576. Demand continues to outweigh supply with new listings were down -7.3 per cent year-on-year which has continued to put strain on stock levels.

'Additionally, investor activity remains strong in the region.”

He says the BOP region is now at its lowest level of inventory since records began with 7 weeks available, down from 15 weeks at the same time last year.

'These levels of activity are expected to continue over the coming months.”

Chief Executive at REINZ Bindi Norwell says October 2020 will go down in ‘housing history' as being the point in time when Auckland region's median house price hit the million-dollar mark for the first time.

'No one anticipated or expected just six months after the entire country came out of lockdown.”

She says with Auckland City ($1,200,000), Manukau City ($1,001,000 – a new record) and North Shore City ($1,150,000) all having median house prices in excess of $1 million it's not surprising that the Auckland region hit the million-dollar mark.

'While this is a significant milestone, it raises serious questions around future affordability for Auckland residents wanting to get a foot on the property ladder. It also highlights just how important it is that legislation, such as the RMA, is re-addressed quickly by the current government so it is fit for purpose to help support more houses being built at speed and at scale,” says Bindi.