Article: REINZ News
Sales Volumes Ease, Prices Rise Modestly In Spring Real Estate Market
Real Estate Institute of New Zealand (REINZ) data on the New Zealand housing market for October 2011 showed 5,007 unconditional sales for the month, up 1,104 sales (+28.3%) compared to October last year. The October figure is 228 lower than last month (-4.4%); however on a seasonally adjusted basis the volumes are almost flat showing a 0.5% drop. The national median house price rose by $9,000 to $359,000 (+2.6%) in October compared to September and is also up $9,000 (+2.6%) compared with October 2010.
Only four markets showed an increase in sales volumes during October, with Taranaki, Wellington, Nelson/Marlborough and Southland all reporting increases. Taranaki recorded the strongest lift in volumes at 15.5%, followed by Wellington (+7.6%) and Southland (+2.4%). Northland reported the largest drop in volumes compared to September (-28.7%) although this was after a strong lift in volumes in the previous month. Interestingly volumes in the Auckland market fell by 4.7% whereas the normal seasonal pattern would have predicted a modest increase compared to September.
Southland recorded the strongest lift in prices for the month of October (+19.3%), followed by Taranaki (+11.1%) and Central Otago Lakes (+9.1%). Compared to October 2010, Southland also recorded the strongest lift in prices (+20.4%), followed by Central Otago Lakes (+9.1%) and Nelson/Marlborough (+7.3%).
“The volume figures for October suggests that the spring ‘lift’ widely expected in the real estate market has been muted, but so too has any impact from the Rugby World Cup and European uncertainty”, said REINZ Chief Executive Helen O’Sullivan. “Volumes are up strongly compared to this time last year, but that in part reflects a very weak October 2010 when sales volumes were amongst the lowest in the past 20 years”.
“We are seeing plenty of activity, but buyers are still very price conscious. They will move quickly when they find a property that meets their needs, but properties perceived by prospective buyers as over priced are not generating much interest at all.”
The national median ‘days to sell’ improved by 2 days from 37 days in September to 35 days in October. The days to sell were at 41 days in October 2010. The days to sell measure continues to trend downward and has now fallen by 10 days over the past five months, from 45 days in May to 35 days in October.
Otago recorded the shortest days to sell at 30 days (-6 days), followed by Southland at 31 days (-5 days), and Canterbury/Westland next with 32 days (-6 days). Central Otago Lakes recorded the longest number of days to sell at 57 days (-22 days), followed by Northland at 50 days (-6 days). Over the past five years the median days to sell has averaged 41 days across New Zealand.
Northland spokesperson, Marilyn Gamman added the following specific
information concerning Whangarei City and Country:
Of the 33 houses sold in Whangarei City by real estate agents in October 2011;
22 were under $300,000 (compared to 42 in the previous month)
9 were between $300,000 and $400,000 (compared to 20 in the previous month)
2 were between $400,000 and $700,000 (compared to 5 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 $8,810,500 compared to $19,282,300 in the previous month.
There was 1 section recorded as sold in Whangarei City by real estate agents under $50,000.
Of the 16 dwellings sold in Whangarei County in October 2011;
4 were under $300,000
(compared to 7 in the previous month) 6 between $300,000 and $400,000 (compared to 12 in the previous month) 6 between $400,000 and $700,000 (compared to 4 in the previous month)
There were also 2 sections sold in Whangarei County in October 2011. 1 between $150,000 and $174,000 and 1 between $225,000 and $249,000.
Residential Highlights – October 2011
Northland
The Northland region recorded a drop in sales after a very strong performance in September with all sub-markets registering a fall. Northland was the only region to record a drop in sales compared to October 2010. Prices on the other hand firmed slightly in October compared to September, although recorded the 2nd largest fall compared to October 2010.
The number of days to sell for Northland improved a further six days to 50 days in October compared to September and by 13 days compared to October 2010. This is the shortest number of days to sell for the region since December 2009.
