Bouyant House Sales Continuing During Winter
An increase in the number of house sales reported by real estate agents last month underlines the current buoyant
marketplace according to the latest residential sales statistics released by the Real Estate Institute (REINZ) today.
During July 7,795 homes changed hands for a total $1.786 billion and an improved median price of $185,000. In June 7,486
houses sold at a median $184,000.
REINZ National President, Rex Hadley said, on a year to year basis, the improvement was even more marked.
“This is the highest number of sales ever recorded for July. We’ve been monitoring the median price carefully this year,
and it has showed a steady improvement, peaking in April to reach $189,000. At this time of the year we would usually
anticipate an easing in the total number of sales and median price. However, when last month is compared to the month of
July in the previous two years (2001 and 2002) the median price has increased by a net $15,000.”
He attributes much of the stimulus behind current sales to net migration flows with more expatriate New Zealanders
returning home now than in recent years.
“There is no doubt too the relatively stable mortgage market also assists in steadying the market, helping to avoid the
lower level of sales that usually accompany winter months,” he said.
“And with Reserve Bank deciding to leave the Overnight Cash Rate (OCR) at 5.75 percent last week, we may see some of the
major lending institutions trimming their floating interest rates to obtain market share – further good news for
homeowners and home buyers!”
He is optimistic about the future for housing in New Zealand.
“This year has been particularly buoyant for house sales with 58,812 already selling in the January – July year to date,
moving steadily upwards from the 65,571 homes sold in 2000 and total 76,092 in 2001. At the same time, the median price
has been steadily – and gradually – improving.
“These sales underline the strength of the housing market and the importance New Zealanders place upon home ownership.
The median price rose in six of the country’s 11 regions, most markedly in Wellington to reach $205,000 in July from the
$198,000 recorded the previous month. The total number of dwelling sales also increased in every region except Hawke’s
Bay, Manawatu/Wanganui, Wellington and Otago.
A total of 808 sections sold during the month for another improved median of $92,000. In June this year, 632 sections
sold for a median $85,000.
Regional Highlights:
Northland:
While the median eased back to $141,500 from the $154,000 recorded in June, the number of sales improved to 222 from
173. Sales were ahead of July 2001, when 192 houses and 10 sections had sold. In all, 30 sections sold for a record
median price of $102,000.
Auckland
The Auckland region recorded an improved number of sales reaching 2,867 in July (June 2002: 2,657) for a slightly
decreased median price of $259,000 (June $261,800). Section sales and median price showed a slight improvement with 199
selling for a median $125,750 (June 2002: 193: $123,000).
On a year to year basis, however, the number of sales improved in the region by 43 percent with the median price also
showing a strong increase. In July 2001, 2004 homes had sold for a median $239,000.
Metropolitan Auckland followed the region’s trend, also recorded improving sales with 2,528 over the 2,344 recorded in
June and a slightly eased median of $263,900, down $5,600 from the previous month.
North Shore City (July: $295,000; June: $286,000) and Waitakere (July: $215,000; June: $210,544) both showed
improvements in their median prices from the previous month. While the median eased back in Auckland City by $15,000 to
$285,000, sales increased by 138 from the previous month to reach 1,001. Six hundred homes sold in Manukau (507 in June)
for a median $250,250. Sales in Pakakura also increased to reach 83 from the 64 sold in June and 46 recorded in July
2001.
Waikato / Bay of Plenty
On a year to year comparison basis, sales of homes in the Waikato were markedly up on the previous July – 1,189 this
year from the 897 recorded in July 2001. The median also increased over the 12 month period by $5,000 to reach $167,000.
While the number of sections sold were also up on an annual comparison (135 to 120), the median remained virtually
constant showing only $100 increase to reach $78,100.
Hawke’s Bay
Two hundred and thirty seven homes sold in July for a total $38.45 million – well ahead of the 170 recorded in July
2001. The median also improved to $138,000, a $6,000 increase over the previous month. In all, 31 sections sold for a
median $69,000. Twelve months earlier only seven sections sold in the same month.
Manawatu / Wanganui
Sales in the Manawatu/Wanganui region remained steady at 320, just ten less than recorded in the previous month. The
median price also eased slightly, at $99,000 decreasing $6,000 from the previous month. Twelve sections also sold for a
median $35,500.
Taranaki
Taranaki recorded improved sales and median price, both on a month to month and annual basis. In all 204 homes sold in
July (175 in June 2002; 144 in July 2001) for a median $111,000 ($108,000 June; $96,750 July 2001). The median price for
sections also improved to reach $42,000 from $38,666 recorded in July 2001.
Wellington
At $205,000, Wellington’s median was up $7,000 on the previous month and $15,000 over the twelve month period. Total
sales were slightly down however with 846 homes selling from the 906 sold in June. The median price for sections held
steady at $74,000 for the second month in a row.
Nelson / Marlborough
Nelson house sales were well up over the 12 month period, the 319 sold in July for a median price of $156,000 showing a
marked increase over the 264 and median of $145,000 in July 2001. Sales for sections were also strong during the month,
with 100 selling for a median $80,000. Twelve months earlier, 42 had sold for a median $74,000.
Canterbury / Westland
Canterbury recorded buoyant sales for the month of July with 1,003 homes selling at a median $141,000, up on the
previous month when 960 sold for a slightly lower median price of $140,000. Using an annual comparison, sales were well
up on the 812 that sold for the median price of $136,000 in July 2001. Section sales also showed a marked increase with
101 selling at a median $92,000. In July the previous year, 74 sections sold at a median $74,750.
Otago
In July 2002, Otago recorded house sales of 320, a considerable increase over the 258 recorded for the same month last
year. While the median price, at $106,750, eased back slightly from the $110,000 recorded in June, it showed significant
improvement on an annual comparative basis over the $94,500 median in July 2001. Sales of sections were well up, at 76,
from June’s 52 and the 29 sold in July 2001.
Southland
Sales of houses and sections both improved over the 12 month comparative basis. In July this year 268 homes sold in
Southland compared to 229 in July 2001. Fifty eight sections sold for a median $86,000, only 19 having sold in the
previous July for a low $50,000 median.
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