July Residential Property Sales a Ten Year Low

July Residential Property Sales a Ten Year Low

Residential property sales turnover is the lowest for a July in a decade but prices in Auckland, Wellington and Christchurch are still up on last year, according to figures released today by the Real Estate Institute of New Zealand (REINZ).

Nationwide sales slipped from 4,575 residential property transactions in June to 4,411 last month, the lowest July total in ten years, but still higher than the record low of only 3,666 dwelling sales last January.

The highest number of residential property sales in July was 10,150 in 2003.

Nationwide prices also fell in July 2010 as measured by the REINZ Monthly Housing Price Index.

The index based on methodology derived by the Reserve Bank of New Zealand (see footnote) decreased by 1.2 percent to 3191.5 in July from June.

In the three months to July, the index shows housing prices decreased by 1.1 percent.

Compared to 12 months earlier, the REINZ Housing Price Index increased by 1.8 percent.

The trend was strongest in Auckland, Wellington and Christchurch where prices remained higher than they were in July 2009 with Christchurch prices up 7.4 percent, Auckland up 1.7 percent, Wellington up 1.1 percent and other North Island suburbs up 2.2 percent.

Prices in South Island suburbs other than Christchurch were down 2.7 percent from July 2009. REINZ spokesperson Peter Thompson says: ‘We are seeing a similar pattern to last month with sales volumes down but prices remaining stable in contradiction of predictions of a falling market..

‘Good sales are still being made and properties priced right are attracting a lot of attention and are selling.’ The national median number of days to sell stayed at 45 for July which is longer than the 37 days of July 2009 but an improvement on the median of 58 days in July 2008.

Winter is traditionally a slow period for the property market, and Mr Thompson says agents are aware of many home owners preparing their properties for marketing in the Spring so an uplift in sales volumes can be expected.

The total value of residential sales, including sections, in July declined to $1.83 billion, a further decrease on the June total of $1.96 billion.

The breakdown of the values of the properties sold is 134 for $1 million plus, 462 for $600,000 - $999,999, 1,084 for $400,000 - $599,999 and 2,731 under $400,000.

Changes in the median price varied from district to district across the country with falls as high as 5 per cent in five regions, and increases of up to 11 per cent in the other seven when compared with the same month last year.

The largest rise in the median price is in Southland which is up more than 10.5 per cent on the previous year and the largest fall in Central Otago Lakes down 4.9 per cent.

ENDS

For further information, please contact: Maria Baillie Member Services Manager 09 356 1755 or 021 956 645 Real Estate Institute of New Zealand

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 who are REINZ members.

This current month’s reporting level is consistent with recent reports and reflects the membership of REINZ which accounts for over 80% of people selling real estate in New Zealand.

These sales are taken as of the date that a transaction becomes unconditional and includes sales as of 5:00pm on the last business day of the month.

Other surveys of the residential property market are 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. Further details on the REINZ Monthly Housing Price Index The REINZ Monthly Housing Price Index is put together using a technique known as stratification; basically it is an average of sale prices for common groups.

The approach used to calculate the REINZ Housing Price Index is very similar to that outlined in the Reserve Bank of New Zealand discussion paper “Developing stratified housing price measures for New Zealand” (see www.rbnz.govt.nz).

However, as a further improvement the REINZ housing price index is now calculated using sales for all transactions reported by REINZ members (rather than the median price for each suburb) within the stratum.

The resultant measure will provide an even more accurate reading of housing price trends.

How stratification works: Dwelling sales from approximately 1800 New Zealand suburbs are ranked according to their median sales price over the relevant comparison period (currently January 2005 - June 2009).

The suburbs are allocated into ten different groups (or strata).

Suburbs accounting for 10 percent of the lowest sales by price are grouped into stratum 1; suburbs with 10 percent of the most expensive sales price are in stratum 10.

The allocation of suburbs to each stratum is fixed over the comparison period.

Using sales data for the individual transactions within the stratum, a median sales price is derived.

The median sales price for each stratum is averaged to produce a housing price measure from which the housing price index is derived. The REINZ Monthly Housing Price Index is based on a value of 1000 in January 1992, the first month for which electronic information is available.

Changes in the index represent movements in housing prices, where the mix of sales between the groups is held constant and are more likely to reflect genuine property price movements.

Monthly movements in the REINZ Housing Price Index can be volatile, particularly for periods or geographical areas where there are fewer transactions.

To aid comparison it may be advisable to convert the monthly data to 3-monthly averages.

The REINZ Monthly Housing Price Index is a new development and further improvements to the methodology and other refinements will be introduced periodically.

Historical data and additional charts are available on the REINZ Website www.reinz.co.nz.

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Residential Highlights – July 2010 The national median price for June was $352,000, slightly down on the previous month’s median of $349,000 is the highest for a July, and a 2.6 percent increase on the July 2008 and 2009 medians of $340,000. REINZ statistics record the median of all sales during the month and are only an indicator of movements in market values as they can be impacted by the number of properties sold at either end of the price bracket.

Northland Northland residential property sales rose from 99 in June to 102 last month but remained down on the 149 in July 2009.

From $280,000 in June the median price increased to $307,500 in July but is still 2.6 per cent down on the $315,500 median in July last year.

In the Whangarei County the median price fell to $320,000 from $358,500 in June, and is also below the July 2009 figure of $342,500. Only 19 residential properties sold, an increase on the 16 sales in June but fewer than the 28 in July 2009.

Sales in Whangarei City fell to 43 from the 50 sold in June, and 69 sales in July 2009.

But the median price remained steady at $280,000 for a third month, and $10,000 below the July 2009 median of $290,000.

Auckland After falling from $470,000 in April to $445,000 in June the Auckland median residential property price eased back up to $450,000 in July, less than 2.3 per cent up on the median price of $440,000 a year ago.

At 1,505, total sales were down on the 1,645 sales in June and less than the 2,024 sold in July 2009.

The median sale price for a North Shore City home further decreased from $539,000 in June to $490,000 in July, which is also down on the median of $535,000 in July 2009. Sales totalled 277, a decrease on the 315 houses sold in June and down on the 400 sold in July 2009.

Sales stayed relatively steady in Waitakere City at 206 compared with 204 sold in June, but a decrease on the 260 properties sold in July 2009.

The median price increased to $390,500 from $379,500 in June and is up on the July 2009 median of $360,000.

After rising to $550,000 in March the median price for an Auckland City house fell further from $495,000 in June to $492,500 last month but is still up on the July 2009 median of $461,250.

At 520 sales were down on the 559 houses sold in June, and the 646 in July 2009.

In Manukau City the median residential property price recovered to $455,000 from $419,000 in June and is significantly up on the median of $438,000 a year ago.

The number of sales decreased to 289 in July from 346 in June (July 2009: 411).

After rising to $337,500 in April the Papakura District median price eased slightly from $321,250 in June to $320,000 last month which is also down on the July 2009 median of $338,000.

The 45 sales in Papakura in July are down on the 56 sold in June and the 60 in July 2009.

The slide in median prices for Metropolitan Auckland homes stopped in July with a recovery from $448,000 in June to $455,000 last month, which is also an increase on the median price of $450,000 in July 2009 and the July 2008 median of $425,000.

But sales of 1,337 were a further decrease on the 1,480 houses sold in June and the 1,777 in July 2009.

Sales in the Rodney District increased to 98 from 81 in June but are down on the 142 sold in July 2009.

From $500,000 in June the median price fell to $459,500 in July but is still up the July 2009 median of $439,500.

The median price for a Franklin District home eased back from $364,000 in June to $340,000 in July which is still an increase on the median of $337,500 in July last year.

With 51 houses sold, sales are up on the 38 sold in June (July 2009: 58).

In Thames/Coromandel sales dropped to 19 from the 46 homes sold in June and the 47 in July 2009.

But the median price remained steady at $390,000, and up on the July 2009 median of $355,000.

The median price for an Outer Auckland home eased back from $424,000 in June to $420,000 last month (July 2009: $400,000).

Sales volume increased to 168 from 165 houses sold in June (July 2009: 247).

Waikato/Bay of Plenty/Gisborne At $315,000, the Waikato/Bay of Plenty/Gisborne district median price has slipped back from $322,000 in June, and is nearly 1.6 per cent down on the July 2009 median of $320,000.

Altogether 588 houses were sold in the district, a increase on the 579 sold in June but down on the 884 sold in July 2009.

In Waikato Country 97 houses were sold, up on the 87 in June but less than the 161 sales in July last year.

At $257,000 the July median is down on $260,000 in June, and the $280,000 median twelve months ago.

The median price for a Hamilton City house fell back from $350,000 in June to $335,000 last month which is also down on the July 2009 median of $338,500.

Sales volume was at 155 compared with the 153 sold in June and the 234 sold in July 2009.

In Western Bay of Plenty Country the median price fell further to $347,500 last month from $375,000 in June, $387,000 in May and $392,500 in April, and is also down on the $380,000 median in July last year.

Sales volumes also declined to 38 from 43 sold in June and 47 in July 2009.

The median price for a house in Mt Maunganui/Papamoa recovered to $412,000 from $375,150 in June and is also up on the median of $361,500 in July last year.

Sales also fell to 47 from 54 houses sold in June, and 74 in July 2009.

In Tauranga the median price rose from $330,000 in June to $339,250 last month, just below the July 2009 median of $340,000.

Sales of residential properties also rose to 90 last month from 81 in June, but remained down on the 149 sold in July 2009.

Rotorua’s median price fell to $262,000 after rising to $272,250 in June, but is still up on the July 2009 median value of $246,500.

Sales of 63 properties are up on the 58 houses sold in June, but a decrease on the 72 sales in July 2009.

In Taupo the median price dropped to $289,000 in July from $336,250 in June and is also down on the July 2009 median of $347,500.

There were 34 sales in July, up on the 28 houses sold in June and the 51 sold in July a year ago.

The median price for King Country residential properties rose to $140,000 from $122,000 in June but is still substantially below the July 2009 median of $190,000.

Sales at 6 are down on the 9 sold in June and the 15 in July 2009.

The median price for a Gisborne City home eased back to $259,000 from $270,000 in June but is still up on the July 2009 median of $250,000.

At 27 the number of sales is down on the 35 in June (July 2009: 41).

From $260,750 in June, the median price in Eastern Bay of Plenty Country rose again last month to $310,000, well up on the July 2009 median of $238,000.

Houses sold totalled 27, down on the 30 sold in June (July 2009: 39).

Hawkes Bay In the Hawkes Bay district the median price of $265,000 is 2.4 per cent below last year’s July median of $271,500 and is also down on June median of $285,000.

Residential property transactions fell from 163 the previous month to 157 in July, also well down on the 232 sales in the same month last year.

After rallying to $315,000 in June, the Napier City median price eased back to $286,750 in July, but is still up on the median of $277,000 in the same month last year.

Sales totalled 66 houses, down on the 73 sold in June and the 115 in July 2009.

In Hastings City the median price stayed steady at $285,000 but is slightly down on the July 2009 median of $287,500.

The sales total was also the same in June and July at 67, but a decrease on July 2009 sales of 85.

In Hawkes Bay Country the median price dropped to $189,000 from $307,000 in June and $330,000 in July 2009, but there were only 5 sales compared with 9 in July 2009 (June 2010: 3).

Manawatu/Wanganui Across the Manawatu/Wanganui district the median price improved to $232,000 from $219,000 in June and is also nearly 3.5 per cent up on the median a year ago of $224,250.

Sales at 207 are down on the 221 houses sold in June, and fewer than the 328 in July 2009.

At $255,000 the median sale price for a house in Palmerston North City is a decrease on $278,000 in June and also down on the July 2009 median of $277,000.

Sales of 99 are an increase on the 93 houses sold in June (July 2009: 134).

Sales volumes in Manawatu Country eased from 22 in June and 31 in July 2009 down to 18 last month.

But the median price increased from $165,000 in June to $202,500 last month, though it is still down on the July 2009 median of $220,000.

In the Manawatu the median price eased back from $242,500 in June to $237,000 last month, which is also down on the July 2009 median of $246,500.

At 162, the number of sales is up on the 156 sold in June but less than the 243 sold in July last year.

The median price in Wanganui City rose to $190,000 in July from $185,000 the previous month, and is also higher than the July 2009 median of $164,000. There were 27 houses sold in July, down on the 49 sold in June and the 60 in July 2009.

The median sale price in the Wanganui region remained steady for a third month at $185,000, which is up on the July 2009 median of $175,000. At 45, sales were down on the 65 houses sold in June and the 85 in July 2009.

Taranaki From $275,000 in May the Taranaki district median house price rose to $285,000 in June and to $292,000 in July, 4.2 per cent up on the $280,100 median in the same month a year ago.

Across the district 145 houses sold, an increase on the 137 sales in June (July 2009: 168).

In the Taranaki Country area the median price increased again from $240,000 in June to $274,000 last month (July 2009: $220,000).

July sales totalled 21, the same as the month before and July 2009.

The median sale price for a New Plymouth City residential property rose to $324,500 from $295,000 in June, an increase on the median of $310,000 a year ago.

At 84 the number of sales was up on the 65 sold in June (July 2009: 96) .

Wellington From $405,000 in June the Wellington district median residential property price returned to $385,000 in July, but is still more than 4 per cent up on the July 2009 median of $370,000.

Sales increased to 512 last month from 485 in June but are down on the 618 in July 2009.

In the Wairarapa sales increased to 41 from the 31 residential properties sold in June (July 2009:63).

From $215,000 in June, the median price rose to $248,000 which is also up on the 2009 July median of $231,500.

The median price for an Upper Hutt house increased again to $322,000 from $317,500 in June but is down on the July 2009 median of $332,000.

Sales of 47 residential properties were recorded in July, up on the 40 sold in June and the 39 in the same month last year.

The Hutt Valley median fell further last month to $330,000 from $352,000 in June but is still above the July 2009 median of $325,500.

In July sales totalled 100, one up on the 99 sold in June but less than the 134 transactions in July 2009.

For a house in Otaki/Paekakariki the median price increased from $320,000 in June to $328,000 last month, and is higher than the July 2009 median of $315,000.

The number of sales increased from 62 in June to 75 last month (July 2009: 91).

From $413,500 in June, the median price in Pukerua Bay/Tawa eased back to $386,500 last month, still well up on the July 2009 median of $367,563.

At 67 sales were up on the 49 in June but down on the 80 in July 2009.

The number of sales in Central Wellington is 32, down on the 43 in June and the 42 residential properties sold in July 2009.

The median price rose from $435,500 in June to $524,500 last month, which is substantially above the July 2009 median of $427,500.

Nelson/Marlborough The median price in the Nelson/Marlborough district decreased from $347,250 in June to $327,000 last month, slightly down on the July 2009 median of $328,000.

At 159, residential property sales are up on 150 in June, but fewer than the 228 in July last year.

In Nelson City the median price decreased from $325,250 in June to $312,000 last month (July 2009: $350,000) but sales volume rose from 50 the previous month to 59 in July, though still less than 75 in the same month last year.

The median price of a Nelson Council Zone house fell to $332,000 from $352,500 in June and is down on the July 2009 median of $355,500.

The number of sales increased to 113 from 98 in June (July 2009:135).

In Marlborough the median price decreased from $312,000 in June to $307,750 last month (July 2009: $305,000).

At 46, sales were down on the 52 in June and fewer than the 93 in July last year.

Canterbury/Westland In the Canterbury/Westland district the median price declined from $325,000 in June to $310,000 last month but is 4.4 per cent up on last year’s July median of $297,000.

From 710 sales in June, turnover decreased to 683, well below the 905 in July 2009.

The median price for a house in Christchurch City fell from $340,000 in June to $328,250 in July, which is still up on the July 2009 median of $310,000.

Sales increased slightly from 473 in June to 482 last month (July 2009: 628).

The median price for a home in Rangiora fell back to $289,000 in July from $330,000 in June, but was still above the median of $272,500 in July last year.

Sales volumes eased slightly from 29 properties in June to 26 last month compared with 38 in July 2009.

The median residential property price in North Canterbury continued to rise from $240,000 in May and $283,500 in June to $320,000 last month and is also up on the July 2009 median of $315,000.

From 16 houses sold in June, sales are up slightly at 19 last month, but down on the July 2009 figure of 29.

The median price for a Canterbury Country home firmed from $365,000 in June to $367,500 last month but is down on the July 2009 median of $389,000.

Sales at 34 were down on the 40 properties sold in June and 41 in July 2009.

The median price of houses sold in Mid-Canterbury decreased from $279,000 in June to $235,000 last month, and is also down on the median of $266,000 in the same month last year.

And the number of houses sold declined from 32 in June to 29 last month (July 2009: 32)

After recovering to $218,000 in June the median price in Timaru fell to $190,000 in July which is also below the median of $226,410 a year ago.

With 33 properties sold, turnover in Timaru is down on the 40 sold in June and the 48 sold in July last year.

The median price for a house on the West Coast decreased last month from $187,500 in June to $180,750 last month (July 2009: $223,000).

Sales eased back to 32 from the 36 residential properties sold in June (July 2009: 31).

In Outer Canterbury 201 houses sold last month, down on the 237 sales in June and 277 in July 2009.

At $265,000 the median price last month is a decrease on the June figure of $285,000 and the median of $270,000 in July last year.

Central Otago Lakes Across the Central Otago Lakes district the median price eased back further from $415,000 in June to $390,800 in July, 4.9 per cent down on the median value of $411,000 a year ago.

Central Otago Lakes house sales also decreased to 48 last month from 85 in June which is also down on the 84 sold in July last year.

The median price for a house in Central Otago decreased to $333,500 last month from $349,500 in June but is up on the July 2009 median of $327,000.

Sales of 24 properties are down on the 42 sold in June and the 49 in July 2009.

From $500,000 in June the Queenstown median price dropped to $436,000 last month nearly $100,000 down on the July median last year of $530,000.

Sales are also down at 24 properties sold compared with 43 in June and 35 in July last year.

Otago In the Otago district the median price increased from $227,500 in June to $245,000 last month, a 9.9 per cent increase on the July 2009 median of $223,000.

Across the region 196 dwellings sold last month, up on the 182 sales in June but less than the 229 in July 2009.

In North Otago the median sale price recovered from $190,000 in June to $211,000 in July and is also up on the median of $207,500 a year ago.

At 26, sales were down on the 29 in June and the 37 in July last year.

The median price in Dunedin City eased up further from $241,250 in May and $243,000 in June to $259,000 last month, also an increase on the July 2009 median of $230,000. At 151 sales are up on the 139 dwellings sold in June but down on the 179 in July 2009.

The number of sales in South Otago increased to 15 from just 10 in June and in July 2009, and the median price rose from $173,500 in June to $227,000 last month, significantly up on the July 2009 median of $142,500.

Southland In Southland the median price has increased more than 10 per cent over the past year from $190,000 in July 2009 to $210,000 last month, and is also up on the June median of $172,000.

Sales volumes decreased to 109 in last month from 119 dwellings sold in June and 165 in July 2009.

In Invercargill the median price last month returned to $210,500 from $188,500 in June and is also up on the median of $205,500 in July 2009.

At 80, sales are up on the 79 sold in June but down on the 120 in July 2009.

The median price for a house in Gore eased up to $183,250 from $153,750 in June and is also up on the median of $138,750 in July a year ago.

But from 22 residential properties sold during June and in July 2009, sales turnover fell to 14 in last month.

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