Article: REINZ News
Autumn Provides Few Falls For Real Estate Market
The national housing market recorded a lift in volumes during the month of April, with the seasonally adjusted number of sales up 3.0% compared to March, according to REINZ figures, the most up-to-date data on the New Zealand real estate market. Across New Zealand 4,987 unconditional sales were reported for the month of April as the market came off the traditional March peak. The national median house price eased by $5,000 to $360,000 from March 2011, but was up $4,000 compared to April 2010.
“The April results reflect a steady market across New Zealand with signs of a lift in prices in the South Island, and Auckland prices still solid with limited supply ,” said REINZ Chief Executive Helen O’Sullivan, “Volumes across the country were stronger than we expected on a seasonally adjusted basis, with only Manawatu / Whanganui and Wellington showing negative volume movements. The results reflect some cautious optimism with no great outbreak of smiles but certainly fewer frowns.”
The Auckland region recorded a new all time high median house price in April of $479,500. Prices in the South Island also showed some strength in April 2011 compared with the previous month, with Otago recording a 9.3% increase, Central Otago Lakes 8.2% and Canterbury/Westland 6.9%. On a seasonally adjusted basis Central Otago Lakes and Otago recorded the strongest lifts in volumes in April compared to March 2011, although the 72% lift in Canterbury/Westland’s volumes reflected both the extraordinarily low March and an easing of previous difficulties in obtaining insurance in this market.
O’Sullivan said, “Auckland continues to lead the overall market in terms of price, with prices rising 2% compared to March and up 2% compared to April 2010. The Auckland region’s days to sell also dropped in April, down to 34 days, with the region continuing to lead the national statistics in terms of days to sell, reflecting the continued tightening conditions in the Auckland market.”
The national median ‘days to sell’ (measuring the number of days from listing date to unconditional date) eased from 41 days in March 2011 to 43 days in April 2011, compared with 40 days in April 2010. Auckland recorded the shortest days to sell at 34 days, reflecting the shortage of listings in this market, with Hawkes Bay next shortest at 41 days. Across the country all regions other than Wellington, Southland and Nelson/Marlborough recorded a decrease in days to sell. Northland remained the region with the longest number of days to sell at 73 days; however, this is a 21 day improvement over the March 2011 measure of 94 days.
Volumes in Christchurch City have staged something of a recovery in April, with 315 sales in the city in April 2011 compared with 193 in March 2011 and 511 in April 2010. While still a long way from previous activity levels, this indicates that the market is finding its way to a “new normal”. The median price in Christchurch City increased by almost 5% compared to March 2011 and increased 1.5% compared to April 2010. The timing of the recovery in transaction numbers is similar to that experienced after the September 8 earthquake and prices continue to firm in the city. As might be expected given the damage footprint, the recovery is not evenly spread, with some areas continuing to report extremely low numbers of transactions.
Northland spokesperson, Marilyn Gamman added the following specific information concerning Whangarei City and Country:
Of the 54 houses sold in Whangarei City by real estate agents in April 2011;
61% were under $300,000 (compared to 62% in the previous month)
28% were between $300,000 and $400,000
(compared to 17% in the previous month)
11% were between $400,000 and $700,000
(compared to 21% in the previous month)
REINZ statistics recorded that there were no sales in Whangarei City by real estate agents over $700,000.
Value of Whangarei City sales totalled $15,034,000 compared to $19,000,000 in the previous month.
There were no sections recorded as sold in Whangarei City by real estate agents in April 2011.
Of the 9 dwellings sold in Whangarei County in April 2011;
22% were under $300,000 (compared to 24% in the previous month)
33% between $300,000 and $400,000 (compared to 29% in the previous month)
33% between $400,000 and $700,000 (compared to 47% in the previous month)
11% were over $700,000.
There were also 6 sections sold in Whangarei County in April 2011 –
One under $99,000, one between $100,000 and $125,000, two between $150,000 and $174,000, one between $275,000 and $300,000 and one between $350,000 and $375,000.
Residential Highlights – April 2011
Northland
The median house price for Northland fell almost 12% in April to $292,000 and is now at its lowest point since June 2010, although the median price held steady in Whangarei City. This regional trend is against the national trend of generally increasing prices in April 2011. Volumes also eased noticeably, with April 2011 being the lowest April result for almost 20 years.
Against this weakening trend of lower prices and volumes the days to sell continued to improve with the median days to sell in April reaching 73 days, 21 days shorter than the 94 days recorded in March and the recorded 111 days in February 2011. There appears to be some nascent interest in coastal properties and agents report that some older stock is now being sold as vendors meet the market.
