Residential values hold steady, sales rise

REAL ESTATE INSTITUTE OF NEW ZEALAND 18 April 2001

Residential values hold steady as sales volumes continue to rise

Residential property statistics for March 2001, released today by the Real Estate Institute of New Zealand, show residential sales improved from February 2001, while residential property values remained relatively consistent.

The total value of sales nationwide also rose over the last month, from $1,291,040,466 for February 2001 to $1,394,271,191 in March 2001, according to Rex Hadley, National President of the Institute.

The national sales volume for March 2001 was 6,659, rising from the 6,182 sales in February. Sales were relatively stable on a year to year basis, with only 93 more homes changing hands in March 2000 than in 2001.

Mr Hadley said, "Regional sales volumes have improved throughout New Zealand, with eight of the eleven regions showing increases on February 2001.

“The volume of sales achieved in March is far more in line with the Institutes expectations, given the current ecomonic environment.

“The Institute has been anticipating that sales volumes would begin to rise, and the latest figures indicate that the New Zealand public are beginning to take advantage of the current lower interest rates available.

“Anecdotal evidence from members suggests that while for the last four to five months listings have been consistently high, turnover remained subdued, largely due to a combination of a cautious buying public and vendors unwilling to compromise on sale price.

Thus, given the upturn in sales volume for March, the Institute is particularly pleased that the increased turnover of residential property has not had a dampening effect of the national median sales price.

“Indeed the increase of over $100,000,000 in the total value of sales nationwide reflects the confidence the New Zealand public has in residential property and the level to which homeowners are now re-entering the property market.”

The national median sales price rose $300 to $173,800, compared to $173,500 in February.
Mr Hadley said that while the median sale price for six of the eleven regions eased on a year to year basis, four of these regions only eased by $500 to 3,500, namely; Canterbury/Westland, Manawatu/Wanganui, Waikato/BOP/Gisborne and Northland. The remaining two regions were Taranaki and Otago, which eased $7,500 and $4,750 respectively.

Conversely, in those regions that experienced an increased median sales price on a year to year basis, the median rose by $7,000 to $11,000.

The latest statistics saw the Southland median rise, from $79,000 in February 2001 to $85,000 in March 2001.

The Auckland, Taranaki, Wellington, Hawkes Bay, Canterbury / Westland, and Nelson/Marlborough medians also rose, Auckland from $247,000 in February 2001 to $248,500 in the latest period and Wellington from $189,050 to $190,000.

Section activity again increased while median section price decreased with 574 sections changing hands at a median price of $80,000, compared to 485 sections sold during February at the median price of $78,000.

-ENDS-
Regional highlights:

NORTHLAND
A total of 177 homes changed hands in Northland, compared to 144 in February. The median price for the area was $146,500, down from the $156,000 recorded in the previous month and the $150,000 for March last year, when 192 homes were sold.

AUCKLAND
In Auckland, 2,060 home settlements were recorded during March, up on the 1,895 recorded in February but down on the 2,263 homes that changed hands in March 2000. The median price for the region rose to $248,500 for March, up from the $247,000 recorded for February 2001 and the $240,000 recorded forMarch 2000.

On the North Shore, the median price fell to $265,000 for March from $269,000 for February and rose on the $255,000 recorded in March 2000. Home sales fell from both the 430 in March 2000 and the 403 sales in February to 353 in March 2001.

A total of 265 homes were sold in Waitakere City, up from the 186 recorded last month and down from the 281 sales recorded last March. The median price was $205,000, up on the $183,750 recorded in February and the $199,000 for March 2000.

In Auckland City 824 homes changed hands, up from the 665 sales recorded in February and down on the 825 sales recorded in March 2000. The median price of $289,500 was up on both the $288,000 recorded for February and the $271,000 recorded twelve months ago.

Home sales remained stable and the median sale price rose in Manukau City, with 376 homes changing hands at a median price of $235,000. This compared with 376 sales and a median price of $232,000 in February and 429 sales recorded last March at a median price of $232,500.

In the Papakura district, 57 homes changed hands, compared to 37 in February and 82 in the same month last year. The median price of $204,500 was down on the $205,000 recorded in February and up on the $194,000 for March 2000.

A total of 1,875 home settlements were recorded in Metropolitan Auckland, up from the 1,667 in February and down on the 2,047 recorded for the same month last year. The median price of $252,000 was down on the $255,000 recorded for February 2001 and the 243,000 recorded for March 2000.

WAIKATO/BAY OF PLENTY/GISBORNE
Sales rose in the Waikato/Bay of Plenty/Gisborne region with 895 homes changing hands, compared to 889 in February. The median price was $160,000, compared with $163,000 in February and $163,000 in March 2000 when 1,037 homes changed hands.

HAWKE’S BAY
The sales volume and median price rose in March with a total of 300 homes changing hands at a median price of $130,000, compared to $128,000 and 231 sales in February. This compared to 237 sales and a median price of $121,750 a year ago.

MANAWATU/WANGANUI
The sales volume in the region fell on both a month to month and year to year basis with 311 home settlements recorded in March compared to 315 in February and 318 in March last year. The median price of $106,000 was down on both the $113,000 of the previous month and the $106,500 recorded in March 2000.

TARANAKI
Sales volume rose on a month to month basis with 156 homes changing hands compared to 143 in February. The median price rose to $105,000 for March compared to $100,000 for February. The sales volume for March 2000 was $112,500 when 174 homes were sold.

WELLINGTON
The median price in the Wellington region rose to $190,000 from both February’s $189,050 and the $179,000 recorded twelve months ago. The sales volume rose on the previous month but fell year to year comparison, from 908 recorded sales in February to 974 homes in March 2001, and compared to 1,018 sales in the same month last year.

NELSON/MARLBOROUGH
Sales volumes fell in March with 272 homes sold in the Nelson/Marlborough area, compared to 275 sales in February. The median price of $150,000 was up on the $146,500 recorded in February, and was consistent with the $150,000 recorded last March when 233 homes were sold.

CANTERBURY/WESTLAND
The median price rose in the Canterbury region during to $149,000 from both the $147,000 recorded in February, and the $150,000 recorded in March 2000. A total of 903 home settlements were recorded, up on both the 810 recorded in February and the 777 sales recorded in March last year.

OTAGO
Sales volume rose and median price fell in Otago on a month to month basis with 364 homes sold during March, at a median price of $95,250 compared to 354 sales and a median of $101,500 in February. In March last year 323 sales were recorded at a median price of $100,000.

SOUTHLAND
The median price rose in the Southland region from $79,000 in February to $85,000 in March. Sales volumes rose, with 247 homes changing hands, compared to February when 218 homes were sold. This compared to a median of $78,000 last March when 180 homes changed hands.

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