Confidence Returning To Shaken Residential Market

FOR IMMEDIATE RELEASE

News Release 15 January 2009

Confidence Slowly Returning To Shaken Residential Market

December sales figures released by the Real Estate Institute of New Zealand (REINZ) today confirm what everybody knows: the residential real estate market has slipped back to where it was a few years ago.

But Institute national president, Mike Elford, believes the downturn of the past few months is, in part, evidence of a “correction” of what in some areas was wrongly inflated values.

“This, combined with factors such as our own general election, which historically sees a slowing of the market, and the global economic situation has resulted in the slowest residential market we’ve seen in several years and in areas where prices had sky-rocketed, these have come back.”

The number of homes sold nationwide in December was 4,302, well down on the same period in 2007 (5,597), but slightly up on November sales of 4,279.

This is coupled with homes taking longer to sell – a median of 45 days in December 2008 compared with 36 in December 2007.

“If you look back, these sales numbers and length of time to sell are consistent with the statistics from December 1999 and 2000.”

In those years total house sales were 4,562 and 4,611 respectively and days to sell were 43 and 51.

Mr Elford reminds people the picture totally changed by 2003 when 8,669 houses changed hands in December with 23 median days to sell.

“Anyone who has been in real estate for any length of time will have come to expect the peaks and troughs of property market cycles. But of course we are also contending with the world’s worst economic figures for 40 years and I wonder how much world events are dictating what is happening here.”

“The forthcoming Government Economic Summit will be looking at ways of encouraging positivity in the economy and housing is always a good way to get things going. Lower interest rates and tax cuts will increase people’s confidence and with Government commitment to further liquidity, I believe we can expect to see a market comeback not too far off.”

The national median house price for December was $328,500 compared with $337,500 in November and $345,000 for the corresponding period in 2007. The value of total residential sales nationwide in December was $1,705,409,595.

This represents a percentage loss in median house price values nationwide of 4.78 per cent in December compared with December 2007. Regionally, three districts held or increased their dwelling price medians (Wellington, Taranaki and Central Otago Lakes). Of the other districts, the biggest drops were seen either in holiday destinations or districts where prices soared over past two or three years including Nelson/Marlborough (-11.24%) and Southland (-13.08%).

ENDS

REINZ__Residential_Market_Statistics__December_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 statistics on 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 – December 2008

Northland
In total, 116 houses sold in Northland in December (November 2008: 93; December 2007: 147). The median price fell to $312,500 from $322,000 in November (December 2007: $335,000).

17 houses sold in the Whangarei County area (November 2008:16; December 2007:16). The median price dropped back to $400,000 from $430,000 in November (December 2007: $430,000).

53 houses sold in Whangarei City in December, up on the 35 sold in November (December 2007: 58). The median was down at $273,000 (November 2008: $ $300,000; December 2007: $307,050).

Auckland
The median house price in Auckland rose to $440,000 in December, from $425,000 in November (December 2007: $460,000). 1,269 houses sold in December, compared with 1,411 sold in November (December 2007: 1,665).

The median sale price for a North Shore City home decreased to $490,500 in December. (November 2008: $513,250; December 2007: $516,000). 202 houses sold during the month, down on the 266 sold in November. (December 2007: 280).

Sales volume was down in Waitakere City in December with 173 sold (November 2008: 187; December 2007: 174). The median price was steady at $375,000 (November 2008: $375,000; December 2007: $376,250).

The median price for an Auckland City house increased to $490,000 in December (November 2008: $448,000 and December 2007: $510,000). 476 houses sold in December, up on the 467 sold in November 2008 (December 2007: 605).

229 houses sold in Manukau City in December (November 2008: 306; December 2007: 337). The median price was up at $431,000 from $417,000 in November (December 2007: $430,000).

The number of sales in Papakura increased by one with 41 houses sold (November 2008: 40; December 2007: 58). The median price jumped to $358,000 (November 2008: $301,000; December 2007: $380,000).

The median price for a Metropolitan Auckland house rose to $440,000 in December, up from $428,500 in November (December 2007: $460,000). 1,121 houses sold (November 2008: 1,266; December 2007: 1,454).

74 houses sold in Rodney District, up from the 69 sold in November (December 2007: 114). The median price eased up slightly to $457,000, from $455,000 in November (December 2007: $500,000).

The median price for a Franklin District home eased back to $381,500, in December, from $385,000 in November (December 2007: $379,000). 34 houses sold, down from 37 in November 2008 (December 2007: 48).

40 houses sold in Thames/Coromandel in December, up one on the 39 sold in November (December 2007:49). The median price was down at $335,000 from $380,000 in November (December 2007: $470,000).

The median price for an Outer Auckland home rose to $420,000 in December, from $401,000 in November (December 2007: $460,000). Sales volume was also up with 148 houses sold, compared with the 145 sold in November (December 2007: 211).

Waikato/Bay of Plenty/Gisborne
The median price for a house in the Waikato/Bay of Plenty/Gisborne region was relatively steady at $302,800 in December (November 2008: $302,050; December 2007: $330,000). 613 houses sold, an increase on the 606 sold in November 2008 (December 2007: 852).

Sales were down in Waikato Country in December with 84 houses sold (November 2008: 92; December 2007: 154). The median price also eased to $267,500 (November 2008: $275,000; December 2007: $272,600).

The median price for a Hamilton City house dropped to $314,500 in December, from $320,000 in November (December 2007: $337,500). Sales volume was up, with 186 houses sold in December 2008 (November 2008: 170; December 2007: 231).

Sales volume was also up in Western Bay of Plenty Country with 42 houses sold, an increase on the 31 sold in November. The median price was up too at $322,500 from $310,000 in November. In December 2007, 57 houses sold with a median sale price of $400,000.

The median price for a house in Mt Maunganui/Papamoa increased to $435,000 in December, from $415,000 in November (December 2007: $450,500). 46 houses sold, down on the 50 sold in November 2008 (December 2007: 76).

64 houses sold in Tauranga in December, down from the 91 sold in November (December 2007: 94). The median price increased to $357,125, from $323,500 in November (December 2007: $362,000).

Rotorua’s median price rose to $230,000 in December, from $221,000 in November (December 2007: $255,000). 67 houses sold, down from the 76 sold in November (December 2007: 91).

36 houses sold in Taupo in December, an increase on the 30 sold in November (December 2007: 36). The median price also increased to $345,000 in December from $312,250 in November (December 2007: $382,500).

The median price for a King Country home dropped to $141,500 in December (November 2008: $185,000; December 2007: $217,000). Eight houses sold, an increase of one from the seven sold in November (December 2007: 10).

The median price for a Gisborne City home eased slightly to $240,000 from $241,500 in November (December 2007: $257,500). Sales volume was down with 33 houses sold, compared with the 40 sold in November (December 2007: 34).

Three houses sold in Gisborne Country in December (November 2008: two; December 2007: two). The median price was $280,000 compared with $285,000 in November 2008 (December 2007: $230,000).

The median price for a house in Eastern Bay of Plenty Country increased to $267,500 in December, up from $250,000 in November (December 2007: $298,000). 44 houses sold, a jump in numbers from the 17 sold in November. 67 sold in December 2007.

Hawkes Bay
Sales volume was up in the Hawkes Bay in December with 166 houses sold (November 2008: 147; November 2007: 246). The median price dropped to $265,000 (November 2008: $292,500; December 2007: $273,267).

The median price for a house in Napier City eased slightly to $291,000 in December (November 2008: $293,026; December 2007: $309,000). 70 houses sold in December (November 2008: 56; December 2007: 99).

65 houses sold in Hastings City in December 2008, up from 58 in November 2008 (December 2007: 81). The median price was down at $259,500 from $287,500 in November (December 2007: $281,000).

Hawkes Bay Country’s median price dipped to $135,000 in December, from $382,500 in November (December 2007: $240,000). Seven homes sold in December (November 2008: 16; December 2007: 26).

Manawatu/Wanganui
The median price for a house in the Manawatu/Wanganui districts was down to $223,500 in December (November 2008: $229,500; December 2007: $244,000). 212 houses sold in December, down on the 222 sold in November (December 2007: 289).

The median sales price for a house in Palmerston North City eased back to $250,000 in December. (November 2008: $255,000; December 2007: $267,500). 91 houses sold (November 2008: 105; December 2007: 121).

Sales volume was up one in Manawatu Country with 25 houses sold (November 2008: 24; December 2007:28). The median price rose to $212,000 from $187,500 in November (December 2007: $220,000).

The median price in the Manawatu was down at $230,000 in December (November 2008: $238,500; December 2007: $255,000). The number of sales was also down with 167 houses sold (November 2008: 176; December 2007: 211).

30 houses sold in Wanganui City in December, down from the 36 sold in November (December 2007: 57). The median price was also down at $160,000 from $187,500 in November (December 2007: $195,000).

The median sale price in Wanganui slipped to $172,500 in December, from $182,000 in November (December 2007: $194,400). 45 houses sold, down one on the 46 sold in November 2008 (December 2007: 78).

Taranaki
The median price for a house in Taranaki remained steady at $260,000 in December (November 2008: $260,000; December 2007: $260,000). 125 houses sold, down on the 135 sold in November (December 2007: 150).

17 houses sold in the Taranaki Country area in December (November 2008: 21; December 2007: 25). The median price dropped to $164,000 from $210,000 in November (December 2007: $232,500).

The median sale price for a New Plymouth City house fell to $280,000 (November 2008: $310,000; December 2007: $293,500). 66 houses sold in December (November 2008: 63; December 2007: 70).

Wellington
Wellington’s median price eased up slightly to $370,000 in December from November 2008’s $369,000. (December 2007: $370,000). The number of sales was down at 489 for December, compared with 509 sold in November 2008. (December 2007: 598).

44 houses sold in the Wairarapa in December (November 2008: 33; December 2007: 52). The median price was down to $240,000 from $252,500 in November (December 2007: $266,000).

The median price for an Upper Hutt house was down at $265,000 (November 2008: $310,075; December 2007: $340,500). 35 houses sold, down on the 46 sold in November (December 2007: 68).

97 houses sold in the Hutt Valley (November 2008: 90; December 2007:129). The median price jumped to $360,000 from $327,000 in November 2008 (December 2007: $314,500).

The median price for a house in Otaki/Paekakariki eased to $317,500 in December (November 2008: $320,000; December 2007: $337,000). 69 houses sold (November 2008: 76; December 2007: 101).

42 houses sold in Pukerua Bay/Tawa in December, a decrease on the 68 sales in November (December 2007: 46). The median price also decreased to $385,000 from $392,500 in November (December 2007: $360,000).

Sales numbers in Central Wellington rose to 53 from 44 in November 2008. (December 2007: 49). The median price increased to $430,000 from $372,500 in November (December 2007: $415,000).

Nelson/Marlborough
The median price for a Nelson/Marlborough house slipped back to $300,000 in December (November 2008: $338,500; December 2007: $338,000). 189 houses sold (November 2008: 154; December 2007: 249).

73 houses sold in Nelson City in December (November 2008: 59; December 2007: 97). The median price fell to $270,000 from $330,000 in November (December 2008: $320,000)

The median price for a Nelson Council zone house decreased to $296,000 in December (November 2008: $321,000; December 2007: $330,000). 115 houses sold (November 2008: 95; December 2007: 155).

74 houses sold in Marlborough in December (November 2008: 59; December 2007: 94). The median price fell to $312,000 from $350,000 in November (December 2007: $355,000).

Canterbury/Westland
Sales volume was up in Canterbury/Westland with 705 houses sold in December (November 2008: 607; December 2007: 825). The median sale price eased slightly to $299,000 from $300,500 in November (December 2007: $315,000).

The median price for a house in Christchurch City decreased to $310,000 in December, from $320,000 in November (December 2007: $336,000). 509 houses sold (November 2008: 430; December 2007: 527).

The median price for a home in Rangiora rose to $323,250 in December (November 2008: $290,500; December 2007: $284,000). 20 houses sold, down two on the 22 in November 2008. (December 2007: 34).

The median price for a North Canterbury house was down to $279,000 in December, from $298,500 in November (December 2007: $297,155). 13 houses sold, up on the 10 sold in November (December 2007: 16).

The median price for a Canterbury Country home dropped to $325,000 in December, from $370,000 in November (December 2007: $390,000). 41 houses sold (November 2008: 26; December 2007: 43).

The numbers of houses sold in Mid Canterbury in December was steady at 22. (November 2008: 22; December 2007: 36). The median price fell to $237,500 from $255,000 in November and $287,500 in December 2007.

Sales increased in Timaru in December, with 38 houses sold (November 2008: 34; December 2007: 52). The median price eased back to $195,500 in December, from $200,000 in November (December 2007: $234,000).

The median price for a house on the West Coast eased up slightly to $225,000 in December from $224,000 in November (December 2007: $185,000). 23 houses sold, up on the 19 sold in November (December 2007: 31).

196 houses sold in Outer Canterbury in December (November 2008: 177; December 2007: 298). The median price slipped to $247,750 in December from $260,000 in November (December 2007: $270,000).

Central Otago Lakes
84 houses sold in December, up from the 69 sold in November (December 2007: 124). The median price dropped to $427,500 in December. (November 2008: $475,000; December 2007: $419,000).

The median price for a house in Central Otago decreased to $376,500 in December (November 2008: $440,000; December 2007: $363,000). 40 houses sold (November 2008: 33; December 2007: 81).

Sales volume increased in Queenstown with 44 houses sold in December, up from the 36 sold in November (December 2007: 43). The median price dropped to $450,500 (November 2008: $500,000; December 2007: $550,000).

Otago
221 houses sold in Otago in December, up on the 203 sold in November (December 2007: 260). The median price increased to $230,000 from $223,000 in November (December 2007: $250,050).

Sales volume was down in North Otago with 21 houses sold (November 2008: 32; December 2007: 34). The median rose slightly to $188,000 from $187,500 in November (December 2007: $202,500).

The median price in Dunedin City increased to $245,000 in December from $232,500 in November (December 2007: $260,000). 180 houses sold (November 2008: 153; December 2007: 208).

The number of sales was up in South Otago with 16 houses sold (November 2008: 13; December 2007: 11). The median price fell to $162,500 from $190,000 in November (December 2007: $176,000).

Four houses sold in East Otago in December, with a median price of $260,000 compared with five sales in November with a median of $245,000. (December 2007: seven sales with a median of $231,000).

Southland
Sales volume was down in Southland with 113 houses sold (November 2008: 123; December 2007: 192). The median price rose slightly to $166,000 from $165,000 in November (December 2007: $191,000).

Sales volume was down in Invercargill at 75 for December (November 2008: 89; December 2007: 125). The median price was also down at $152,000 (November 2008 $175,000; December 2007: $199,000).

The median price for a house in Gore rose to $165,000 in December from $120,000 in November (December 2007: $164,500). 21 houses sold during the month, up on the 13 sold in November 2008 (December 2007: 28).

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