Article: REINZ News
Modest Recovery In Housing Prices And Volumes In February
The national housing market staged a modest recovery in February in terms of both prices and volumes during the month. Across the country 4,502 unconditional sales were reported, a 38% increase over the prior month – or a 45% increase when Canterbury/ Westland figures are excluded from both totals. The national median increased $10,000 from the January figure to reach $350,000 and equal the median recorded at the same time last year.
“Overall, the data is a bit of a mixed bag” said REINZ CEO Helen O’Sullivan, “February’s transaction volumes were always going to be an improvement on January, but the improvement in the raw medians in most districts as well as in the stratified median prices is a positive sign.”
“The recovery in transaction volumes in Auckland and Manawatu/Wanganui is encouraging, with both areas recording higher numbers of transactions in February 2011 than in the same month of 2010. In fact, Auckland’s transaction volumes were marginally higher – by just one transaction – than in February 2009. On the less positive side, the overall transaction numbers are still 4.3% below the February 2010 level, and median days to sell increased nationally and in most areas.”
Reports from members indicate that although rents are rising in key urban areas and there is a continuing shortage of housing stock, particularly in Auckland, buyers are still being cautious. This is evident in the increased days to sell, which measures the time between the property being listed and an unconditional sale being completed. Equally, vendors are not under pressure to sell and landlords are successfully increasing rents, albeit by small increments.
Looking forward, O’Sullivan says, “The recent cut in the OCR by the Reserve Bank of 50 basis points may provide some encouragement to buyers – equally however it makes it easier for current owners to hold if they don’t see the pricing they expect. We would be really pleased if the rate decrease had a positive impact on the construction of new housing stock, especially in the Auckland market.”
Northland spokesperson, Marilyn Gamman added the following specific information concerning Whangarei City and Country:
Of the 36 houses sold in Whangarei City by real estate agents in February 2011;
55.5% were under $300,000 (compared to 66% in the previous month)
36% were between $300,000 and $400,000 (compared to 16% in the previous month)
5.5% were between $400,000 and $700,000 (compared to 16% in the previous month)
REINZ statistics recorded that 1 property was sold in Whangarei City by real estate agents over $900,000.
Value of Whangarei City sales totalled $10,984,500 compared to $6,936,000 in the previous month.
There were no sections sold in Whangarei City by real estate agents.
Of the 22 dwellings sold in Whangarei County in February 2011;
28% were under $300,000 (compared to 14% in the previous month)
24% between $300,000 and $400,000 (compared to 29% in the previous month)
38% between $400,000 and $700,000 (compared to 43% in the previous month)
10% were over $700,000
There were also 8 sections sold in Whangarei County in February 2011 –
3 under $99,000, 3 between $125,000 and $150,000, 1 between $150,000 and $174,000, and 1 between $225,000 and $250,000.
Residential Highlights – February 2011
Northland
The median price for Northland rose modestly between January 2011 and February 2011, but the results within Northland were mixed. Whangarei City recorded solid gains in prices, however, these were offset by falls in Whangarei Country. Volumes improved significantly compared to January 2011, but were down by a quarter compared to February 2010.
Northland’s days to sell reached 111 days, up 15 days compared to January 2011 and up more than 60% compared to February 2010. Northland’s days to sell have set a new record, beating the old record of 96 days set in October 2000 and again in January 2011.
