Residential Market News from REINZ
14 Oct 2009
Figures released today by the Real Estate Institute of New Zealand (REINZ) reveal further positive trends in terms of residential real estate turnover, median sale prices, and time to sell.
Newly elected Institute President, Peter McDonald, says the figures indicate improved confidence of buyers and sellers in the marketplace.
A turnover of 6,464 sales nationally during September represents an increase in sales of more than 30 percent compared with 4,499 sales in the corresponding month in 2008. However, while volume of turnover is also up on the 5,894 sales in September 2007, it is still significantly lower than 2006 when September saw 8,658 properties change hands.
The national median price for houses sold in September was $350,000, slightly up on last month’s $346,750 median price and noticeably higher than the $330,000 of September 2008.
We’re seeing a slow, but steady, appreciation in sale values and we’re now back to the prices being fetched in the corresponding period in 2007 when the median was $351,500,” Mr McDonald says.
House prices in September were up in all but three out of 12 districts compared with 12 months ago. Northland was down 4.20% from a median of $297,500 to $285,000, and Hawkes Bay fell 2.48% from $271,742 to $265,000. Central Otago Lakes was down 15.62% from $480,000 to $405,000.
The biggest rises were in Auckland, climbing 8.33% from a median of $420,000 to $455,000; Taranaki which rose from $256,583 to $283,000 (up 10.29%); and Wellington, up 8.04% from $350,000 to $378,168.
Number of days to sell was the third factor contributing to what the real estate industry is describing as a very encouraging month, Mr McDonald says. Nationally, properties took a median of 33 days to sell compared with 34 in August and 52 in September 2008.
“Again for days to sell we’re back to 2007 figures which was a comparable 32 days,” Mr McDonald says.
Houses in Auckland, Taranaki, Wellington, Nelson/Marlborough and Otago took 30 days or less to sell while the slowest markets were Northland (63 days) and Central Otago Lakes (60 days).
The September sale value figures are up 6.06 percent nationally on the corresponding figure for last year with a total residential sales value of more than $2,819 million.
Auckland sales accounted for $1,321m of total sales in September. Canterbury/Westland and Waikato/BOP were the next greatest value at $338m and $332.7m respectively with Wellington close behind at $318m.
Sales distribution showed a swing towards houses in the upper price brackets with the number of houses in the $1m and over category more than doubled from 94 in September 2008 to 216 in September 2009. This compares with 163 in August 2009. Likewise there was a rise in the number of houses sold in the $600,000 - $999,999 range, up from 418 in September 2008 to 754 in September 2009 compared with 667 in August 2009.
The number of houses under $400,000 also rose sharply from 2,968 in September 2008 to 3,897 in September 2009 and 3,595 in August 2009; while those in the $400,000 - $599,999 range rose from 1019 in September 2008 to 1,597 in September 2009 and 1,453 in August 2009.
