Late Spring Flush Lifts Residential Property Sales

Late Spring Flush Lifts Residential Property Sales

A late spring surge in the residential property market has lifted the level of sales back above 5,000 and the national median price up to $360,000, according to figures released today by the Real Estate Institute of New Zealand (REINZ).

“The indications of a lot more listings noted at the beginning of last month have led to a late flush of spring activity,” says REINZ spokesman Bryan Thomson “With pent-up levels of people now in the market who need to buy or sell homes, we can expect the increased activity to continue through December and the summer without the usual slowdown over Christmas.”

From just 3,903 transactions in October, total dwelling sales rose to 5,138 in November from below 5,000 for the previous five months. But the increase in sales has been off a low base and is less than the 6,056 sales in November 2009 though more than the 4,279 sales in November 2008

The national median price rose from $350,000 in October to $360,000 last month which is also an increase on the November 2009 median price of $355,000. It almost matches the record national median price of $360,500 recorded in March 2010.

Reflecting rising buyer interest, the national median number of days to sell has shortened again to 40 from 41 in October and 43 in September and August.

“With sellers coming to terms with current market prices and buyers reassured about the long term stability of interest rates, confirmed last week by the Reserve Bank Governor, we can look forward to more positive levels of real estate market activity than we have seen over the past six or eight months,” says Mr Thomson

Nationally the total value of residential sales, including sections, increased from $1.67 Billion in October to $2.26 Billion in November. The breakdown of the values of the properties sold is 204 for $1 million plus, 663 between $600,000 and $999,999, 1275 between $400,000 and $599,999 and 2,996 for under $400,000.

From district to district, the changes in median prices over the past year have varied from increases of up to 3.8 per cent in five regions to falls of more than 4 per cent in three regions and a drop of 9 per cent in Northland.

ENDS

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