Residential Market News from REINZ
14 Sep 2009
According to the latest statistics released by the Real Estate Institute of New Zealand (REINZ) today the residential real estate market continues the steady pattern seen over the past few months. The figures show little movement in median prices and numbers of properties changing hands in August compared with previous months.
However, there are some significant differences in the total dwelling sales and the time it takes to sell them when comparing August 2009 figures with the corresponding period in 2008.
REINZ President Mike Elford says the noticeable increase in number and speed of turnover compared with a year ago is pleasing, but notes “it is early days yet, and we still need to be cautious in drawing conclusions from these trends”.
Nevertheless, he says, the latest statistics are in line with other signs in the economy that financial commentators have suggested point to a recovery from recession.
“Like those commentators, we would be reluctant to say the hard times are over, but if the trees are not yet in full bloom, there are certainly buds in view,” Mr Elford says.
During August, the total national value of residential house property changing hands was $2,504 million. The lion’s share of this was in Auckland ($1,141.5 m) followed by Canterbury / Westland ($313.5 m) and Wellington ($275.7 m).
The median house price in August at $346,750 is slightly up on July’s $340,000 and almost back to the median of August 2007 when it sat at $350,000. It is well up on August 2008 when the median was $330,000.
“Looking back, 2008 was a disastrous year. I hope we can put this behind us,” Mr Elford says.
Regionally, the position is certainly brighter in most areas. Median prices in August 2009 compared with August 2008 were up in eight out of 12 districts, with a national percentage increase of 5.07. Taranaki was the best performing of the districts with a percentage increase of 15 (up from $250,000 to $287,500). Auckland rose from a median of $423,500 to $450,000 (up 6.25 percent); Wellington rose from $375,000 to $395,500 (up 5.46 percent) and Northland from $285,000 to $295,000 (up 3.5 percent).
The biggest drops in median prices were in Manawatu / Wanganui (down 9.09 percent from $231,000 in August 2008 to $210,000 in August 2009) and Central Otago Lakes (down 6.45 percent from $465,000 to $435,000)
The volume of homes sold in August 2009 at 5,878 is well up on the 4,220 recorded in 2008 but slightly down on July 2009 when turnover was 6,014.
Mr Elford points out when this is viewed in line with the number of days to sell a house – at a median of 34 days in August 2009 compared with 55 days in August 2008, it is clear the issue is not that houses are hard to sell, but rather, there is a shortage of stock going on the market.
“People are sitting tight in their homes, enjoying the relief of lower interest rates which is resulting in limited stock available. Where properties are coming on the market, we’re seeing multiple offers which is good for sellers,” Mr Elford says.
Auckland and Canterbury / Westland are the fastest districts in which to sell a house, with properties snapped up within a median of 30 days according to the August statistics. It takes 40 days or less everywhere else apart from Northland (62 days), Waikato / Bay of Plenty (44 days), Hawkes Bay (43 days) and Central Otago Lakes (80 days).
There has been some good news for sellers in the higher price band market with sales in the $1 million + bracket rising from 103 in August 2008 and 125 in July 2009 to 163 in August 2009 although still not up at the 202 recorded in August 2007. There was also a rise in house sales in the $600,000 to $999,999 bracket from 616 in July 2009 to 667 in August 2009. This was up from 421 in August 2008, but down on the 736 sold in this range in August 2007.
Houses sold in the under $400,000 and the $400,000 to $599,999 bracket are similar to August 2007 and last July’s figures, at 3595 and 915 respectively, but well up on August 2008’s 2746 and 619 sales respectively.
Mr Elford says the steady performance of the real estate market over the past few months is good to see.
“I hope we will see more improvements as is typical going into the spring months,” he says.
According to the latest statistics released by the Real Estate Institute of New Zealand (REINZ) today the residential real estate market continues the steady pattern seen over the past few months. The figures show little movement in median prices and numbers of properties changing hands in August compared with previous months.
However, there are some significant differences in the total dwelling sales and the time it takes to sell them when comparing August 2009 figures with the corresponding period in 2008.
REINZ President Mike Elford says the noticeable increase in number and speed of turnover compared with a year ago is pleasing, but notes “it is early days yet, and we still need to be cautious in drawing conclusions from these trends”.
Nevertheless, he says, the latest statistics are in line with other signs in the economy that financial commentators have suggested point to a recovery from recession.
“Like those commentators, we would be reluctant to say the hard times are over, but if the trees are not yet in full bloom, there are certainly buds in view,” Mr Elford says.
During August, the total national value of residential house property changing hands was $2,504 million. The lion’s share of this was in Auckland ($1,141.5 m) followed by Canterbury / Westland ($313.5 m) and Wellington ($275.7 m).
The median house price in August at $346,750 is slightly up on July’s $340,000 and almost back to the median of August 2007 when it sat at $350,000. It is well up on August 2008 when the median was $330,000.
“Looking back, 2008 was a disastrous year. I hope we can put this behind us,” Mr Elford says.
Regionally, the position is certainly brighter in most areas. Median prices in August 2009 compared with August 2008 were up in eight out of 12 districts, with a national percentage increase of 5.07. Taranaki was the best performing of the districts with a percentage increase of 15 (up from $250,000 to $287,500). Auckland rose from a median of $423,500 to $450,000 (up 6.25 percent); Wellington rose from $375,000 to $395,500 (up 5.46 percent) and Northland from $285,000 to $295,000 (up 3.5 percent).
The biggest drops in median prices were in Manawatu / Wanganui (down 9.09 percent from $231,000 in August 2008 to $210,000 in August 2009) and Central Otago Lakes (down 6.45 percent from $465,000 to $435,000)
The volume of homes sold in August 2009 at 5,878 is well up on the 4,220 recorded in 2008 but slightly down on July 2009 when turnover was 6,014.
Mr Elford points out when this is viewed in line with the number of days to sell a house – at a median of 34 days in August 2009 compared with 55 days in August 2008, it is clear the issue is not that houses are hard to sell, but rather, there is a shortage of stock going on the market.
“People are sitting tight in their homes, enjoying the relief of lower interest rates which is resulting in limited stock available. Where properties are coming on the market, we’re seeing multiple offers which is good for sellers,” Mr Elford says.
Auckland and Canterbury / Westland are the fastest districts in which to sell a house, with properties snapped up within a median of 30 days according to the August statistics. It takes 40 days or less everywhere else apart from Northland (62 days), Waikato / Bay of Plenty (44 days), Hawkes Bay (43 days) and Central Otago Lakes (80 days).
There has been some good news for sellers in the higher price band market with sales in the $1 million + bracket rising from 103 in August 2008 and 125 in July 2009 to 163 in August 2009 although still not up at the 202 recorded in August 2007. There was also a rise in house sales in the $600,000 to $999,999 bracket from 616 in July 2009 to 667 in August 2009. This was up from 421 in August 2008, but down on the 736 sold in this range in August 2007.
Houses sold in the under $400,000 and the $400,000 to $599,999 bracket are similar to August 2007 and last July’s figures, at 3595 and 915 respectively, but well up on August 2008’s 2746 and 619 sales respectively.
Mr Elford says the steady performance of the real estate market over the past few months is good to see.
“I hope we will see more improvements as is typical going into the spring months,” he says.
