REINZ Residential Market Report - January 2009

For Immediate Release

News Release 13 February 2009

SELLERS RESISTANT IN SLOW RESIDENTIAL MARKET

The Real Estate Institute of New Zealand (REINZ) has recorded the lowest number of monthly sales since 1992, January sales figures released by REINZ today reveal.

REINZ president Mike Elford said that well priced properties coming on the market are selling and are holding their value to a reasonable degree (January 2008 national median house price was $340,000 compared with $325,000 January 2009).

Of greater concern is not the price of houses, but the very limited turnover. The number of home sales nationwide in January was 3,706, significantly less than same period in 2008 (5,186), and also less than December sales of 4,302.

“This is the lowest figure we have seen in recent years by quite some margin,” Mr Elford said. “Before 2008, the lowest turnover of houses we have seen on the New Zealand market was January 1992 when the number of houses sold was 4,427. We’re now well below that.

“It’s clear evidence that people are treading cautiously and reflects the uncertainty of the wider economic environment,” Mr Elford said.

He said falling interest rates had yet to have the effect of vitalising the market.

Another worrying trend is the length of time it is taking to sell a house – a national median of 59 days in January 2009 compared with 49 in January 2008 and 45 days in December 2008. This is the longest period in recent years since January 2001 when houses took on average 64 to sell.

“Again, this is a symptom of the market’s ‘wait and see’ approach,” Mr Elford said.
Mr Elford notes that the median days to sell is impacted by the Christmas break period and also that, over the years, January has regularly featured as the slowest month in terms of number of sales.

The national median house price for January 2009 was $325,000 compared with $340,000 in January 2008 and $327,000 for the corresponding period in 2007. The value of total residential sales nationwide in Janaury was $1,431,912,521.

This represents a percentage loss in median house price values nationwide of 4.41 per cent in Janaury compared with January 2008. Regionally, Taranaki was the only region not to experience a drop in median house prices, up 1.42 per cent. The biggest drops were in Northland (- 16.15 per cent), Nelson/Marlborough (- 10.00 per cent), Otago (- 10.63 per cent) and Southland (- 22.22 per cent). Other regions were down between 1.15 per cent (Wellington) and 8.06 per cent (Canterbury/Westland).

Full Residential Market Report Stats: January 2009

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 – January 2009

Northland
In total, 83 houses sold in Northland in January (December 2008: 116; January 2008: 134). The median price fell to $275,000 from $312,500 in December (January 2008: $328,000).

Eight houses sold in the Whangarei County area (December 2008: 17; January 2008: 20). The median price dropped back to $380,000 from $400,000 in December (January 2008: $395,000).

42 houses sold in Whangarei City in January, down on the 53 sold in December (January 2008: 66). The median was down at $261,000 (December 2008: $273,000; January 2008: $313,500).

Auckland
The median house price in Auckland fell to $422,000 in January, from $440,000 in December (January 2008: $432,750). 1,149 houses sold in January, compared with 1,269 sold in December (January 2008: 1,550).

The median sale price for a North Shore City home increased to $507,500 in January. (December 2008: $490,500; January 2008: $495,000). 246 houses sold during the month, up on the 202 sold in December 2008. (January 2008: 248).

Sales volume was down in Waitakere City in January with 143 sold (December 2008: 173; January 2008: 186). The median price was also down at $352,500 (December 2008: $375,000; January 2008: $381,900).

The median price for an Auckland City house decreased to $458,500 in January (December 2008: $490,000 and January 2008: $433,000). 344 houses sold in January, down on the 476 sold in December 2008 (January 2008: 485).

237 houses sold in Manukau City in January (December 2008: 229; January 2008: 370). The median price was down at $408,000 from $431,000 in December (January 2008: $430,000).

The number of sales in Papakura dropped with 28 houses sold in January 2009. (December 2008: 41; January 2008: 51). The median price also dropped to $303,500 (December 2008: $358,000; January 2008: $305,000).

The median price for a Metropolitan Auckland house fell to $425,000 in January, down from $440,000 in December (January 2008: $429,750). 998 houses sold (December 2008: 1,121; January 2008: 1,340).

65 houses sold in Rodney District, down from the 74 sold in December (January 2008: 105). The median price rose to $485,000, from $457,000 in December (January 2008: $526,000).

The median price for a Franklin District home was down to $367,000 in January, from $381,500 in December (January 2008: $370,000). 45 houses sold, up on the 34 sales in December 2008 (January 2008: 57).

41 houses sold in Thames/Coromandel in January, up one on the 40 sold in December (January 2008: 48). The median price rose to $350,000 from $335,000 in December (January 2008: $472,000).

The median price for an Outer Auckland home decreased to $396,000 in January, from $420,000 in December (January 2008: $460,000). Sales volume was up with 151 houses sold, compared with the 148 sold in December (January 2008: 210).

Waikato/Bay of Plenty/Gisborne
The median price for a house in the Waikato/Bay of Plenty/Gisborne region was up slightly at $304,250 in January (December 2008: $302,800; January 2008: $320,000). 458 houses sold, a decrease on the 613 sold in December 2008 (January 2008: 712).

Sales were down in Waikato Country in January with 65 houses sold (December 2008: 84; January 2008: 108). The median price also eased to $248,000 (December 2008: $267,500; January 2008: $255,000).

The median price for a Hamilton City house dropped to $290,000 in January, from $314,500 in December (January 2008: $325,000). Sales volume was down, with 119 houses sold in January 2009 (December 2008: 186; January 2008: 155).

Sales volume was also down in Western Bay of Plenty Country with 28 houses sold, a decrease on the 42 sold in December. The median price jumped up to $379,000 from $322,500 in December. In January 2008, 71 houses sold with a median sale price of $397,000.

The median price for a house in Mt Maunganui/Papamoa decreased to $375,000 in January, from $435,000 in December (January 2008: $410,500). 40 houses sold, down on the 46 sold in December 2008 (January 2008: 60).

66 houses sold in Tauranga in January, up two on the 64 sold in December (January 2008: 96). The median price decreased to $343,750, from $357,125 in December (January 2008: $341,500).

Rotorua’s median price rose to $242,500 in January, from $230,000 in December (January 2008: $281,000). 48 houses sold, down from the 67 sold in December (January 2008: 81).

38 houses sold in Taupo in January, an increase on the 36 sold in December (January 2008: 58). The median price also increased to $382,500 in January from $345,000 in December (January 2008: $362,500).

The median price for a King Country home rose to $182,500 in January (December 2008: $141,500; January 2008: $146,000). 10 houses sold, an increase of two on the eight sold in December (January 2008: 18).

The median price for a Gisborne City home rose to $255,000 from $240,000 in December (January 2008: $278,000). Sales volume was down with 26 houses sold, compared with the 33 sold in December (January 2008: 27).

No sales were recorded in Gisborne Country for January (December 2008: three; January 2008: three).

The median price for a house in Eastern Bay of Plenty Country fell to $210,000 in January, down from $267,500 in December (January 2008: $253,500). 18 houses sold, a drop in numbers from the 44 sold in December. 35 sold in January 2008.

Hawkes Bay
Sales volume was down in the Hawkes Bay in January with 155 houses sold (December 2008: 166; January 2008: 217). The median price was also down at $259,000 (December 2008: $265,000; January 2008: $280,000).

The median price for a house in Napier City eased to $287,000 in January (December 2008: $291,000; January 2008: $292,500). 79 houses sold in January (December 2008: 70; January 2008: 94).

46 houses sold in Hastings City in January 2009, down from 65 in December 2008 (January 2008: 87). The median price was down at $240,000 from $259,500 in December (January 2008: $285,000).

Hawkes Bay Country’s median price eased slightly to $134,000 in January, from $135,000 in December (January 2008: $292,500). Six homes sold in January (December 2008: seven; January 2008: 15).

Manawatu/Wanganui
The median price for a house in the Manawatu/Wanganui districts was down to $220,000 in January (December 2008: $223,500; January 2008: $230,000). 217 houses sold in January, up on the 212 sold in December (January 2008: 270).

The median sales price for a house in Palmerston North City increased to $260,000 in January. (December 2008: $250,000; January 2008: $269,000). 99 houses sold (December 2008: 91; January 2008: 95).

Sales volume was down in Manawatu Country with 17 houses sold (December 2008: 25; January 2008:24). The median price dipped to $190,000 from $212,000 in December (January 2008: $211,000).

The median price in the Manawatu was up at $235,000 in January (December 2008: $230,000; January 2008: $250,000). The number of sales was down with 164 houses sold (December 2008: 167; January 2008: 176).

35 houses sold in Wanganui City in January, up from the 30 sold in December (January 2008: 68). The median price was also up at $178,000 from $160,000 in December (January 2008: $179,500).

The median sale price in Wanganui slipped to $160,000 in January, from $172,500 in December (January 2008: $179,500). 53 houses sold, up on the 45 sold in December 2008 (January 2008: 94).

Taranaki
The median price for a house in Taranaki increased to $266,750 in January (December 2008: $260,000; January 2008: $263,000). 130 houses sold, up from the 125 sold in December (January 2008: 173).

13 houses sold in the Taranaki Country area in January (December 2008: 17; January 2008: 27). The median price jumped to $255,000 from $164,000 in December (January 2008: $285,000).

The median sale price for a New Plymouth City house increased to $307,500 (December 2008: $280,000; January 2008: $311,000). The number of sales remained steady with 66 houses sold in January (December 2008: 66; January 2008: 74).

Wellington
Wellington’s median price fell to $362,500 in January from December 2008’s $370,000. (January 2008: $366,750). The number of sales was down at 396 for January, compared with 489 sold in December 2008. (January 2008: 594).

32 houses sold in the Wairarapa in January (December 2008: 44; January 2008: 60). The median price was down to $231,000 from $240,000 in December (January 2008: $256,500).

The median price for an Upper Hutt house rose to $300,000 (December 2008: $265,000; January 2008: $326,500). 34 houses sold, down one on the 35 sold in December (January 2008: 58).

78 houses sold in the Hutt Valley (December 2008: 97; January 2008: 135). The median price dropped to $345,000 from $360,000 in December 2008 (January 2008: $310,000).

The median price for a house in Otaki/Paekakariki eased to $315,000 in January (December 2008: $317,500; January 2008: $325,500). 65 houses sold (December 2008: 69; January 2008: 74).

39 houses sold in Pukerua Bay/Tawa in December, a decrease on the 42 sales in December (January 2008: 75). The median price also decreased to $364,000 from $385,000 in December (January 2008: $368,000).

Sales numbers in Central Wellington fell to 45 from 53 in December 2008. (January 2008: 38). The median price dipped to $397,500 from $430,000 in December (January 2008: $453,500).

Nelson/Marlborough
The median price for a Nelson/Marlborough house increased to $306,000 in January (December 2008: $300,000; January 2008: $340,000). 173 houses sold (December 2008: 189; January 2008: 212).

68 houses sold in Nelson City in January (December 2008: 73; January 2008: 77). The median price increased to $320,000 from $270,000 in December (January 2008: $340,000)

The median price for a Nelson Council zone house increased to $316,500 in January (December 2008: $296,000; January 2008: $340,000). 114 houses sold (December 2008: 115; January 2008: 130).

59 houses sold in Marlborough in January (December 2008: 74; January 2008: 82). The median price fell to $287,500 from $312,000 in December (January 2008: $343,700).

Canterbury/Westland
Sales volume was down in Canterbury/Westland with 562 houses sold in January (December 2008: 705; January 2008: 780). The median sale price dipped to $285,000 from $299,000 in December (January 2008: $310,000).

The median price for a house in Christchurch City decreased to $300,000 in January, from $310,000 in December (January 2008: $325,500). 379 houses sold (December 2008: 509; January 2008: 524).

The median price for a home in Rangiora remained relatively steady at $323,000 in January (December 2008: $323,250; January 2008: $362,500). Sale numbers were also stable with 20 houses sold. (December 2008: 20; January 2008: 26).

The median price for a North Canterbury house was down to $247,000 in January, from $279,000 in December (January 2008: $275,500). 19 houses sold, up on the 13 sold in December (January 2008: 30).

The median price for a Canterbury Country home rose to $360,000 in January, from $325,000 in December (January 2008: $388,750). 30 houses sold (December 2008: 41; January 2008: 34).

The number of houses sold in Mid Canterbury in January was up with 45 sales recorded. (December 2008: 22; January 2008: 28). The median price was also up at $245,000 from $237,500 in December and $230,500 in January 2008.

Sales dropped in Timaru in January, with 21 houses sold (December 2008: 38; January 2008: 49). The median price increased to $225,000 in January, from $195,500 in December (January 2008: $219,000).

The median price for a house on the West Coast dropped to $172,500 in January from $225,000 in December (January 2008: $210,000). 18 houses sold, down on the 23 sold in December (January 2008: 38).

183 houses sold in Outer Canterbury in January (December 2008: 196; January 2008: 256). The median price rose to $259,000 in January from $247,750 in December (January 2008: $265,000).

Central Otago Lakes
78 houses sold in January, down from the 84 sold in December (January 2008: 118). The median price rose to $457,500. (December 2008: $427,500; January 2008: $476,500).

The median price for a house in Central Otago increased to $382,000 in January (December 2008: $376,500; January 2008: $449,000). 35 houses sold (December 2008: 40; January 2008: 77).

Sales volume was down by one in Queenstown with 43 houses sold in January, compared with the 44 sold in December (January 2008: 41). The median price rose to $560,000 (December 2008: $450,500; January 2008: $585,000).

Otago
194 houses sold in Otago in January, down on the 221 sold in December (January 2008: 243). The median price was also down at $210,000 from $230,000 in December (January 2008: $235,000).

Sales volume was down one in North Otago with 20 houses sold (December 2008: 21; January 2008: 44). The median was up at $205,000 from $188,000 in December (January 2008: $174,750).

The median price in Dunedin City fell to $231,000 in January from $245,000 in December (January 2008: $250,000). 152 houses sold (December 2008: 180; January 2008: 181).

The number of sales was up one in South Otago with 17 houses sold (December 2008: 16; January 2008: 12). The median price dipped to $120,000 from $162,500 in December (January 2008: $135,000).

Five houses sold in East Otago in January, with a median price of $145,000 compared with four sales in December with a median of $260,000. (January 2008: six sales with a median of $181,500).

Southland
Sales volume was down in Southland with 111 houses sold (December 2008: 113; January 2008: 183). The median price increased to $175,000 from $166,000 in December (January 2008: $225,000).

Sales volume was down in Invercargill at 67 for January (December 2008: 75; January 2008: 113). The median price was up at $185,000 (December 2008: $152,000; January 2008: $232,000).

The median price for a house in Gore rose slightly to $166,000 in January from $165,000 in December (January 2008: $155,500). 21 houses sold during the month, holding steady on the 21 sold in December 2008 (January 2008: 26).

ENDS

© Scoop Media