December House Sales Continue At Robust Levels

December House Sales Continue At Robust Levels

Residential properties continued to sell at “robust” levels during December, according to the latest statistics released by the Real Estate Institute of New Zealand (REINZ) today.

A total of 7,766 house sales were reported by real estate agents during the month for a slightly decreased national median price of $192,000 and total value of $1.844 billion.

REINZ national president, Graeme Woodley, said while total house sales last month had decreased from November, when 9,832 homes changed hands, they appeared to have set a record for the month of December.

“The market remains robust and sales are well ahead of totals for December in recent years,” he said.

In December 2001, 6,147 homes sold for a median $178,000, while 4,611 had changed hands in December 2000 at the then national median price of $170,000.

He attributed much of this strength in sales levels to continuing confidence in New Zealand’s domestic economy and stability in mortgage rates.

“Obviously, with Christmas and annual holidays falling during the latter part of the month, total sales always ease back in December. However, this year the momentum of recent months appears to have continued and sales were particularly healthy, especially when compared to the December month of previous years.”

Mr Woodley said while the national median price, at $192,000, had levelled from November’s high of $195,000, it still showed a 7.86 percent increase in value from December 2001.

Median prices increased in five of the country’s 11 regions with Hawke’s Bay recording the largest individual gain, rising by $16,250 to reach $156,250. In two regions – Taranaki and Nelson – the individual median price remained stable, while medians eased back in Auckland, Manawatu / Wanganui, Wellington and Otago.

Housing sales continued at a record level for the December month in Auckland district, however the region’s individual median had eased.

Nationally, demand for section sales was strong with 830 selling for a record median price of $93,750 last month.

Mr Woodley said the demand for residential investment property continued to be a major contributory factor to the current strong level of sales.

“There is no doubt that good property, bought in the right location and held for the appropriate time will always appreciate in value. More and more New Zealanders are realising the importance of including residential housing as part of their long term financial planning.”

Regional highlights:

Northland: A total of 216 homes sold in Northland during December for a median price of $167,500 – well ahead of the 170 that had changed hands in December 2001 at a median price of $162,500. Sections continued to sell readily, with the 36 sold attaining a median of $97,500.

Auckland At 2,511 house sales in the Auckland region, December sales were well ahead of the same month in previous years (December 2001: 1,968; December 2000: 1,434). The median price, however, eased back to $267,500. Section sales continued at strong levels with a total of 180 reaching a median price of $125,500.

In North Shore City, total sales again followed the national trend of lower numbers for the month, however, at 448, they were well ahead of December in previous years. The median price also eased back slightly to $298,125 from November’s $300,000. Thirty seven sections also sold during the month for a median price of $169,000.

House sales in Waitakere City were also lower than the previous month with 299 selling for an improved median of $231,000 – in November, 408 homes changed hands at a median $220,000. Sales followed the national trend of being well ahead of the December month in previous years. Twenty sections also sold for a median $125,000.

Auckland City also recorded the strongest sales in December in recent years with 984 selling for an eased median price of $310,000 – down from November’s sales of 1,076 and median $330,000. Twenty nine sections also sold for a median price of $118,500.

In Manukau City 349 homes sold during December, just ahead of the 342 sold in December 2001. Their median price also eased back to $265,000 from the $277,000 recorded in November 2002. Sections continued to sell steadily with 24 changing hands and reaching an improved median price of $122,500.

On an annual comparative basis, house sales in Papakura again showed a marked improvement. In December 2002, 73 houses sold to reach a median price of $215,000; well ahead of the 56 sales of December 2001 and median price of $196,250.

Metropolitan Auckland again followed the national trend for robust December sales, at 2,153, well ahead of the 1,708 recorded in December 2001 and 1,309 of December 2000. Easing back to $275,000 from November’s $285,000, the median price for the last month of 2002 remained well ahead of December 2001’s $258,900.

In Rodney District, which includes the Hibiscus Coast, sales remained steady with 183 houses sold during December at an decreased median price of $275,000 (November 2002: 269 sold for a median $290,000). Strong activity was recorded with the number of listings improving. Sales for sections were also well up with 34 selling for a median $132,500 (November 2002: 27 sections sold at a median $160,000).

Sales eased back during December in Thames / Coromandel to 96 from the 108 sold in November due in part to a shortage in listings. However the median price moved up by $11,000 from the previous month to reach $187,500. Section sales improved to 19 and a median $99,500 (November 2002: 13 sections sold at a median price of $83,750).

Waikato / Bay of Plenty / Gisborne Again following the national trend for robust sales levels, a total of 1,365 homes sold in the Waikato/Bay of Plenty/Gisborne region during December for an improved median price of $176,000. (November 2002: 1,453 sold at a median $169,000). Once again these results were well ahead of the December month in previous years. Sales of sections were particularly strong with the 187 sold reaching an improved median price of $91,000.

Hawke’s Bay In Hawke’s Bay, 302 houses were sold during December for an increased median price of $156,250 – again well ahead of December 2001 when 201 homes sold for a median $140,000. (November 2002: 332 houses sold for a median $140,000.) Section sales were relatively strong, with 18 selling for a median $94,161.

Manawatu / Wanganui Three hundred and nineteen houses sold in the Manawatu / Wanganui region during December for an eased median price of $102,000. Fourteen sections also sold at a median $33,000.

Taranaki At 173, and a median price of $115,000, house sales in Taranaki last month were well improved from December 2001 when 146 sold at a median $107,000. Section sales were steady at seven, although their median price eased back to $20,000.

Wellington Wellington followed the national trend for robust sales in December, higher than the same month in previous years, but eased back from November’s record of 1,213. In all, 892 homes sold during the month for a decreased median price of $215,000. (November 2002: median $222,000; December 2001 756 houses sold at a median $195,000). Thirty seven sections also sold for a median price of $82,000.

Nelson / Marlborough On an annual comparative basis, house sales in the Nelson / Marlborough region again followed the national trend for improved numbers sold and median price. In December, 337 homes sold for a steady median price of $175,500. (November 2002: 425 sold for the same median price $175,500; December 2001: 318 sold at a median $147,500.) Strong demand for sections saw sales reaching record levels with the 119 sold reaching an increased median of $93,000.

Canterbury / Westland The median price for homes in Canterbury / Westland continued to edge up in December to reach $151,750. In all, 984 houses sold during the month, a decrease from the 1,192 that sold for a median price of $149,950 in November 2002; but well ahead of the 767 sold and median of $147,000 of December 2001. Section sales continued at strong levels with 112 reaching a median price of $88,750.

Christchurch City sales totalled 631 in December for an increased individual median price of $170,000 (November 2002: 1,192 sold at a median $149,950). Twenty eight houses sold in Riccarton and Upper Riccarton for a median $167,750; while the North Western inner suburbs of Fendalton/Ilam and Merivale recorded an improved median price of $305,000 for the 72 homes sold. Sales were up in Timaru to 78 (73 sold in November 2002) with another increased median price of $108,750 (November 2002: $95,000). On the West Coast sales eased back slightly to 43 from the 49 sold in the previous month, however the median price increased to reach $70,000.

Sections sold very strongly in the region during December with 112 reaching a median price of $88,750, well ahead of December 2001 when 50 changed hands at a median $68,500.

Otago The Otago region also followed the national trend for robust sales in December, when compared to the same month in previous years. In all 422 homes sold for a decreased median price of $110,000 (November 2002: 527 sold for a median $115,500). Last month’s figures were well ahead of December 2001 when only 349 homes sold in Otago for a median $95,000. Sections continued to sell strongly, with 99 attaining a median price of $60,000.

Southland Two hundred and forty fives houses sold in Southland during the month of December for an increased median price of $87,500. Following the national trend, again well ahead of December 2001 when 231 homes changed hands at a median $78,500. Twenty one sections also sold during the month for a median price of $130,000.

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