Residential property market holding steady
Though median residential property prices and the number of sales were down in April, figures released today by the Real Estate Institute of New Zealand (REINZ) indicate the market is holding steady.
Real Estate Institute of New Zealand President Peter McDonald says house values are firming rather than appreciating and he has welcomed the lessening of volatility in the market.
“The peaks and troughs of the past 18 months have settled and it’s pleasing to see the market retaining its strength,” he says. “From the highest March median sale price of $360,500, the fall in April has been just $4,500 to $356,000, another record, and sales at more than 5000 are also a good sign as we head into winter.”
“The number of median days to sell has increased from 35 to 40,” he says. “But that could be because greater use is being made of fixed period marketing such as auctions which appear to be getting very good results, especially in Auckland.”
The total value of residential sales, including sections, in New Zealand in April was $2.24 billion, a decrease on the March total of $2.73 billion. The April total of 5207 dwellings sold is also down on the 6161 sold in March and 6,210 sold in the same month last year. The breakdown of the values of the properties was 177 for $1 million plus, 624 for $600,000 - $999,999, 1342 for $400,000 - $599,999 and 3064 under $400,000.
While the April national median residential house price is slightly down on the March figure, it is 4.7 percent up on the median price for April 2009. There have also been increases in the median price in 10 out of the 12 districts ranging up to 10 per cent when compared with the same month last year.
Two of the largest annual percentage increases were in Auckland, up 8.0 percent to $470,000, and Nelson/Marlborough up 8.8 percent to $339,500. However the biggest rise was in Northland, up 10.4 per cent from $290,000 to $320,250. The only negative change in district median prices was in Southland which recorded a fall of 2.63 percent from $190,000 to $185,000.
Auckland residential sales, including sections, accounted for $995 million of total sales in April. Sales in Wellington and Canterbury/Westland were the next greatest value at $276 million and $269 million respectively.
While the national median for days to sell increased to 40 from just 35 in March, this is still down on the figure of 42 for the corresponding period a year ago. The fastest sales were achieved in Auckland at 35 median days, and Canterbury/Westland at 36.
Source: Reinz -14 May 2010
Residential sales and prices rise in March
Both median residential property prices and the number of sales rose in March according to figures released today by the Real Estate Institute of New Zealand (REINZ) as large increases in listings left buyers spoilt for choice.
Real Estate Institute of New Zealand President Peter McDonald describes the apparently strengthening residential property market as most encouraging.
"Despite an abundance of good listings at present, we are still seeing prices going up as a result of strong demand from genuine home buyers," he says. "The median sale price of $360,500 is the highest March figure in twenty years and, after dropping to just 3666 in January, the number of sales broke through the 6000 barrier last month."
"What is happening now is in strong contrast to the market in November when listings were short and prices went up because demand was not being met," he says.
The total value of residential sales, including sections, in New Zealand in March was $2.73 billion, an increase on the February total of $2.14 billion. The March total of 6161 dwellings sold is also an improvement on the February figure of 5,029. The breakdown of the values of the properties was 208 for $1 million plus, 812 for $600,000 - $999,999, 1589 for $400,000 - $599,999 and 3552 under $400,000.
While the March national median residential house price is only $500 up on the December figure, it is more than 7 percent up on the median price for March 2009. There has also been increases in the median price in all 12 districts ranging from 1 to nearly 10 percent when compared to the same month last year.
Once again two of the largest annual percentage increases were in Auckland, up 9.31 percent to $475,500, and Taranaki up 8.52 percent to $280,000. While in Otago and Central Otago Lakes, where median prices in February were down on the same month last year, there was only minimal increase in March. However in Southland the annual median price percentage increase is more than 5.3 per cent to $191,750.
Auckland residential sales, including sections, accounted for $1,267 million of total sales in March. Wellington and Canterbury/Westland were the next greatest value at $350 million and $326 million respectively.
Another indicator of the strengthening market is a fall in the national median for days to sell from 46 in February to just 35 in March, which is also down on the figure of 44 for the corresponding period a year ago. Sales were quickest in Wellington, Canterbury/Westland and Otago at 29 median days.
Source: Reinz -16 April 2010
Best and worst performing suburbs across the country
Best performing
The six North Shore suburbs in the top 10 are all in the more affordable areas. They are reasonably centrally located and close to the motorway. Demand has been strong for houses in these areas, combined with a general shortage of properties for sale which has tended to push prices up. This comes after the very same suburbs were amongst the hardest hit when the market started to decline in 2008. So the gains of the last year have in part been a recovery of values from this decline, and now all six of these North Shore suburbs have values above the previous peak of the market.
Onemana is a small seaside village near Whangamata. Onemana is bucking the trend of many coastal communities where values have tended to remain depressed. It is a very small community, so it only takes a few unusual sales to affect the whole market. The number of sales in Onemana has been very low for the past year so this tends to make measuring changes in the market more unreliable.
Harbour View, overlooking the Hutt Valley, is also a relatively small suburb (with less than 200 houses). As a result, it too suffers from a low number of sales making it difficult to get a decent handle on the market.
Values in Kingswell, a suburb in the south of Invercargill, took a sharp dive in March and April last year. They recovered just as quickly and since then have grown only slightly. So the strong annual growth in Kingswell reflects more that there was an unusually low period this time last year than the suburb performing strongly over recent months.
Worst performing
In general, values of houses in rural centres have been flat over the last year. After the drop from the peak of the market in late 2007, values recovered in the main urban areas, but in the rural areas stayed more or less at that lower level. The same applies to many holiday home and coastal communities where people have been trying to reduce debt. As a result the demand for properties in these areas has been very weak, so prices have been depressed.
Source: QV -12 April 2010
|
