Residential Property Market Steady In September

FOR IMMEDIATE RELEASE

News Release 10 October 2008

Residential Property Market Steady In September – REINZ

The world’s financial markets may be in turmoil, but they’re showing little dramatic effect so far on the New Zealand residential real estate market, according to the Real Estate Institute of New Zealand (REINZ).

President Mike Elford says the September figures reveal no dramatic trends and are relatively constant with last month’s result, albeit in a sluggish market, with 4,499 sales recorded compared with 4,220 in August.

“The median house price overall remains unchanged in September compared with August at $330,000. The relatively small increase in the number of properties sold indicates a slight degree of recovery, but that is what we would expect in a spring market after a harsh winter,” Mr Elford says.

He believes the lower than normal volume of properties being listed is a reflection of people’s resistance to realising losses on the value of their property.

He believes they are also waiting to see what the Reserve Bank will do with the Official Cash Rate.

“There was little impact on the housing market with the 0.5 percent cut last month. It will be interesting to see if the cut anticipated later this month has any effect. We would hope to see some relief with the retail banks dropping their interest rates.

Whether the international scene will have an effect is more likely to be revealed when the October results become available, he says.

The average number of days to sell a house remained on a par with last month (52 in September compared with 55 in August which in turn was a drop from 58 in July) but is still 20 days more than the average 32 days in September 2007.

Around the regions, four out of 12 areas experienced rises in median price house sales compared with August 2008, seven were down and one region, Canterbury/Westland remained constant. The Canterbury/Westland region stayed steady on the median house price of $290,000 on total sales of $235,711,243.

Northland was one of the regions to rise, recovering from its drop to $285,000 in August to $297,500 with total sales value of $39,815,000

The other regions to rise were Hawkes Bay up to a median of $271,742 from $265,000 in August on total sales of $43,479,203; Taranaki to $256,583 from $250,000 on sales totalling $46,527,141; and Central Otago Lakes up to $480,000 from 465,000 on sales of $40,719,500.

Auckland dropped slightly from median prices of $423,500 in August to $420,000 in September on total sales valued at $705,330,907.

Waikato/BOP median house sales also fell slightly in the flat overall market. Last month’s figures were $316,000 compared with $314,350 in September with a total value of $237,934,405.

In Manawatu/Wanganui total sales were $58,605,350 with median values of $225,000 compared with $231,000 in August. Similarly, the Capital experienced a slight drop in median values from $375,000 in August to $350,000 in September with total sales of $201,256,733.

Meanwhile in Nelson/Marlborough, median house values dropped from $328,000 to $320,000 on total sales of $80,195,997.

Further south the picture was similar in Otago down to $221,500 from $230,000 on sales of $57,519,978 and in Southland a slight dip down to $197,000 from $190,000.

In percentage annual comparisons, figures are down in all 12 regions apart from Central Otago Lakes which sees a 0.52 percent increase over the corresponding period in 2007.

Northland is down 7.03 percent, Auckland 4.86 percent, Waikato/BOP 2.60 percent, Hawkes Bay 4.65 percent, Manawatu/Wanganui 6.25 percent, Taranaki 3.17 percent and Wellington 7.79 percent. In the South Island, Nelson Marlborough is down 3.10 percent, Canterbury/Westland down 7.93 percent, Otago 6.14 percent and Southland 4.10 percent.

Overall, the New Zealand percentage decrease over the past year is 6.11 percent.

ENDS

REINZ_Residential_Market_Report_Stats_September_2008.pdf

For more real estate information and market trends data, visit www.reinz.co.nz . For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory website.

Explanatory Note:
The monthly REINZ residential sales reports remain the most contemporary and up-to-date statisticson house prices and sales in New Zealand. They are based on actual sales reported by real estate agents. These sales are taken as of the date that a transaction becomes unconditional.

Other surveys of the residential property market are estimates only of property value, based on information from Territorial Authorities regarding settlement and the receipt of documents by the Authority from a solicitor. As such, this information involves a lag of four to six weeks before the sale is recorded by the Territorial Authority.

REINZ sales figures are recorded on the day a transaction is concluded and includes sales as of 5:00pm on the last business day of the month.

Residential Highlights –September 2008
Northland
In total, 104 houses sold in Northland in September (August 2008:119; September 2007:147). The median price up to $297,500 from $285,000 in August (September 2007: $320,000).

19 houses sold in the Whangarei County area (August 2008:12; September 2007:17). The median price was up at $375,000 from $327,500 in August (September 2007:$482,000).

51 houses sold in Whangarei City in September, down on the 68 sold in August (September 2007:71). The median price fell to $275,000 (August 2008: $285,000; September 2007: $305,000).

Auckland
Sales volume was up with 1425 houses sold in September, compared with 1350 sold in August. (September 2007: 1956).

The median house price in Auckland fell slightly to $420,000 in September, from $423,500 in August (September 2007: $441,500).

The median sale price for a North Shore City home rose slightly to $ 508,500 in September (August 2008: $508,000; September 2007: $520,000). 246 houses sold during the month, up on the 235 sold in August. (September 2007: 341).

Sales volume dropped in Waitakere City in September with 184 houses sold (August 2008: 202; September 2007: 264). The median price was also down at $360,000 (August 2008: $374,000; September 2007: $375,000).

The median price for an Auckland City house decreased to $450,000 in September (August 2008: $467,500 and September 2007: $480,000). 469 houses sold in September, up from 445 in August (September 2007: 641).

298 houses sold in Manukau City in September (August 2008: 272; September 2007: 434). The median price was down slightly at $397,000 from $399,500 in August (September 2007: $430,000).

Sales increased in Papakura with 47 houses sold (August 2008: 35; September 2007: 67). The median price was down at $293,500 (August 2008: $355,000; September 2007: $363,500).

The median price for a Metropolitan Auckland house was down to $425,000 in September, from $430,000 in August (September 2007: $445,000).1244 houses sold (August 2008: 1189; September 2007: 1747).

97 houses sold in Rodney District, up on the 70 sold in August (September 2007: 98). The median price rose to $440,000, from $428,500 in August (September 2007: $490,750).

The median price for a Franklin District home dropped to $365,000 in September, from $385,000 in August (September 2007: $385,000). 52 houses were sold (August 2008: 46; September 2007: 67).

In Thames/Coromandel 32 houses sold in September, down from 45 sold in August (September 2007: 44). The median price rose slightly to $349,000 from $345,000 in August (September 2007: $405,000).

The median price for an Outer Auckland home rose to $405,000 in September, from $394,000 in August. (September 2007: $429,500). 181 houses sold, up from the 161 sold in August (September 2007: 209).

Waikato/Bay of Plenty/Gisborne
The median price for a house in the Waikato/Bay of Plenty/Gisborne region eased to $314,350 in September (August 2008: $316,000; September 2007: $322,750). 632 houses sold, an increase on the 577 sold in August 2008 (September 2007: 866).

Sale numbers increased in Waikato Country in September with 108 houses sold (August 2008: 101; September 2007: 198). The median price rose to $253,500 (August 2008: $235,000; September 2007: $249,950).

The median price for a Hamilton City house eased to $330,000 in September, from $334,000 in August (September 2007: $365,000). Sales volume was up, with 168 houses sold in September 2008 (August 2008: 146; September 2007:200).

Sales volume also increased in Western Bay of Plenty Country with 37 houses sold, up on the 23 sold in
August. The median price dropped to $344,000 from $385,000 in August. In September 2007, 53 houses sold with a median sales price of $370,000).

The median price for a house in Mt Maunganui/Papamoa rose slightly to $412,500 in September, from $408,000 in August (September 2007: $405,000). 56 houses sold, up on the 47 sold in August 2008 (September 2007: 73).

100 houses sold in Tauranga in September, up on the 93 sold in August (September 2007: 96). The median price eased to $334,350, down from $336,915 in August (September 2007: $358,000).

Rotorua’s median price dropped to $257,500 in September, down from $277,000 in August (September 2007: $262,350). 60 houses sold, down five on the 65 sold in August (September 2007: 84).

26 houses sold in Taupo in September, a decrease on the 30 sold in August (September 2007: 48). The median price jumped from $317,500 in August to $419,000 in September (September 2007: $362,500).

The median price for a King Country home dropped to $175,000 in September (August 2008: $184,250;
September 2007: $171,000). 9 houses sold, down from the 14 sold in August (September 2007: 14).

The median price for a Gisborne City home dropped to $215,000 from $290,000 in August (September 2007: $249,250). 37 houses sold, an increase from the 29 sold in August (September 2007: 50).

Three houses sold in Gisborne Country in September (August 2008: one; September 2007: four). The median sale price of was $280,000 (August 2008: $230,000; September 2007: $102,500).

The median price for a house in Eastern Bay of Plenty Country dropped to $270,000 in September, down from $280,000 in August (September 2007: $208,500). Sale numbers were steady at 28 houses sold (September 2007: 46).

Hawkes Bay
Sales volume was down in the Hawkes Bay in September with 144 houses sold (August 2008: 177; August 2007: 181). The median price increased to $271,742 (August 2008: $265,000; September 2007: $285,000).

The median price for a house in Napier City eased slightly to $282,500 in September (August 2008: $283,000; September: 2007: $306,000). 42 houses sold in September (August 2008:77; September 2007:63).

68 houses sold in Hastings City in September 2008, down from 74 in August 2008. (September 2007: 76) The median price was up at $255,500. (August 2008: $249,000; September 2007: $283,250).

Hawkes Bay Country’s median price rose to $360,000 in September, from $320,000 in August (September 2007: $400,000) with 18 homes sold in September, double that of the 9 sales in August 2008. (September 2007: 15).

Manawatu/Wanganui
The median price for a house in the Manawatu/Wanganui district eased to $225,000 in September (August 2008: $231,000; September 2007: $240,000). 234 houses sold in September, up on the 208 sold in August (September 2007: 309).

The median sale price for a house in Palmerston North City rose to $282,000 in September (August 2008: $262,500; September 2007: $285,000). 92 houses sold (August 2008:94; September 2007: 143).

Sales volume increased in Manawatu Country with 24 houses sold (August 2008:9; September 2007: 30). The median price also rose to $202,500 from $196,000 in August (September 2007: $198,000).

The median price in the Manawatu area remained stable at $245,000 in September. (August 2008: $245,000; September 2007: $265,000). 170 houses sold (August 2008:164; September 2007:239).

43 houses sold in Wanganui City in September, up sharply on the 25 sold in August (September 2007: 47). The median price eased to $172,500 from $177,500 in August (September 2007: $169,000).

The median sale price in Wanganui slipped to $171,250 in September, down from $182,500 in
August (September 2007: $167,500). 64 houses sold, an increase on 44 sold in August 2008 (September 2007: 70).

Taranaki

The median price for a house in Taranaki rose to $256,583 in September (August 2008: $250,000; September 2007:$265,000). 158 sold, up from the 147 sold in August (September 2007: 141).

20 houses sold in the Taranaki Country area in September (August 2008:16; September 2007:19). The median price rose to $226,500 from $189,500 in August (September 2007: $194,000).

The median sale price for a New Plymouth City house dropped to $281,000 (August 2008: $300,000; September 2007: $350,000). 81 houses sold in September (August 2008: 70; September 2007:68).

Wellington
The median price for a Wellington house was down at $350,000 in September, from $375,000 in August (September 2007: $380,000). 491 houses sold, up on the 458 sold in August (September 2007: 652).

31 houses sold in the Wairarapa in September (August 2008: 28; September 2007: 62). The median price dropped to $225,000 from $278,750 in August (September 2007: $247,500).

The median price for an Upper Hutt house eased slightly to $285,000 (August 2008: $286,000; September 2007:$368,000). 47 houses sold, up on the 44 sold in August (September 2007: 59).

97 houses sold in the Hutt Valley (August 2008: 92; September 2007: 135). The median price dropped to $316,700 from $330,000 in August 2008 (September 2007: $335,000).

The median price for a house in Otaki/Paekakariki rose to $295,000 in September (August 2008: $287,000; September 2007: $330,500). 83 houses sold, more than double that of August’s 37. (September 2007:89).

54 houses sold in Pukerua Bay/Tawa in September, falling from the 71 sales in August (September 2007:70). The median price dropped to $359,000 from $380,000 in August (September 2007: $ 387,250).

Sales numbers in Central Wellington rose to 43 in September from 36 in August 2008. (September 2007: 59). The median price jumped to $390,000, up from $351,000 in August (September 2007: $389,000).

Nelson/Marlborough
The median price for a Nelson/Marlborough house was down at $320,000 in September, from August’s $328,000. (September 2007: $330,250) 219 houses sold (August 2008:184; September 2007: 230).

76 houses sold in Nelson City zone during September (August 2008:59; September 2007: 86). The median price increased to $333,500 from $329,000 in August (September 2008: $330,000).

The median price for a Nelson Council zone house dipped slightly to $333,500 in September (August 2008: $336,000; September 2007: $332,500). 134 houses sold (August 2008: 109; September 2007:146).

85 houses sold in Marlborough in September (August 2008:75; September 2007:84). The median price was down at $300,000 from $318,000 in August and $325,250 in September 2007.

Canterbury/Westland
Sales volume increased in Canterbury/Westland with 677 houses sold in September (August 2008: 618; September 2007: 836). The median price remained stable at $290,000 (August 2008: $290,000; September 2007: $315,000).

The median price for a house in Christchurch City rose slightly to $312,250 in September, from $310,000 in August. (September 2007: $335,000). 436 houses sold (August 2008:418; September 2007: 595).

The median price for a home in Rangiora dipped to $296,750 in September (August 2008: $328,000; September 2007: $273,000). 32 houses sold, up on the 23 sold in August 2008. September 2007: 23).

The median price for a North Canterbury house was up $500 at $233,000 in September, from $232,500 in August. (September 2007: $305,000). 15 houses sold, up on the 9 sold in August (September 2007: 23).

The median price for a Canterbury Country home increased to $375,000 in September, from $344,500 in August. (September 2007: $392,500). 38 houses sold (August 2008: 22; September 2007:34).

45 houses sold in Mid Canterbury in September (August 2008:35; September 2007: 44). The median price slipped to $251,800 from $265,000 in August and $283,750 in September 2007.

Sales increased in Timaru in September, with 40 houses sold (August 2008: 35; September 2007: 38). The median price was also up at $252,500 in September, from $243,570 in August (September 2007: $216,500).

The median price for a house on the West Coast was down at $175,000 from August’s median of $220,000. (September 2007: $170,000). 30 houses sold, up on the 23 sold in August (September 2007: 30).

241 houses sold in Outer Canterbury in September (August 2008: 200; September 2007: 241). The median price was down slightly at $255,000 in September from $259,500 in August (September 2007: $269,000).

Central Otago Lakes
70 houses sold in September, up on the 60 sold in August (September 2007: 110). The median price rose to $480,000 in September, from $465,000 in August (September 2007: $477,500).

The median price for a house in Central Otago dropped to $395,000 in September (August 2008: $418,000; September 2007: $408,000). The number of sales remained steady at 29 (August 2008: 29; September 2007: 53).

Sales volume also increased in Queenstown with 41 houses sold in September, up on the 31 sold in August (September 2007:57). The median price reached $520,000 (August 2008: $490,000; September 2007: $584,000).

Otago
232 houses sold in Otago in September, an increase on the 188 sales in August (September 2007:263). The median price dipped to $221,500 from $230,000 in August (September 2007: $236,000).

Sales volume was stable in North Otago with 24 houses sold in both August and September 2008. (September 2007:32). The median price rose to $200,000 from $189,000 in August (September 2007: $178,000).

The median price in Dunedin City was down at $230,000 in September from $249,500 in August (September 2007: $260,000). 190 houses sold (August 2008: 152; September 2007: 194).

Sales volume also increased in South Otago with 14 houses sold (August 2008: 10; September 2007: 31). The median price dropped to $125,150 from $148,000 in August (September 2007: $150,000).

Four houses sold in East Otago in September, double the two sold in August. (September 2007: six). The median price was down at $164,000. (August 2008: $270,000; September 2007: $247,000).

Southland
Sales volume eased in Southland with 113 houses sold (August 2008: 134; September 2007: 203). The median price also eased down to $187,000 from $190,000 in August (September 2007: $195,000).

Sales volume was down in Invercargill, with 85 houses sold in September. (August 2008:96; September 2007: 139). The median price increased to $200,000 (August 2008: $190,000; September 2007: $201,500).

The median price for a house in Gore fell to $150,000 in September from $182,500 in August (September 2007: $148,500). House sales were steady at 15 during August and September 2008. (September 2007: 26).

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