Bouyant House Sales Continuing During Winter

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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