Residential Market Takes Summer Break

December’s sales and residential property values ebbed from November levels but on a more positive note, both market activity and median prices remained up on figures from earlier in the year, according to statistics released today by the Real Estate Institute of New Zealand (REINZ).

“December’s residential property sales volumes flagged a little relative to November,” says REINZ Chief Executive Helen O’Sullivan. “But while volumes have ebbed, December’s sales were higher than in the months of August to October of the same year. That’s relatively rare, as December volumes are usually lower than even the winter months, and bodes well for activity levels in the new year.”

“The decline in turnover has followed a fall in listings in December and in the number of houses on the market as a result of good sales in November,” says Helen O’Sullivan. “December sales volumes are always subject to the timing and impact of the great New Zealand Christmas shut down and January’s figures will provide a better picture of market activity over summer. Anecdotally our members are reporting increased activity so it will be interesting to see how that translates into listings and sales.”

The most up to the minute statistics on recent property value movements across New Zealand, the REINZ report on sales in December indicates district median prices at the end of the year were an average of 2.2 per cent down on December 2009. From $360,000 in November 2010 and in December 2009, the national median eased back to $352,000 in December 2010, still higher than the median prices in July, August, September and October.

Total dwelling sales fell back to 4,397 in December from 5,138 in November, which is also down on the December 2009 total of 4,957. But last month’s dwelling sales median is up on the August, September and October medians and the volume of 4,397 was higher than the 4,302 transactions in December 2008. The national median ‘days to sell’ reduced slightly from 40 in November to 39 in December.

Nationally the total value of residential sales, including sections, fell to $1.9 Billion in December from $2.26 Billion in November. The breakdown of the values of the properties sold is 154 for $1 million plus, 517 between $600,000 and $999,999, 1,106 between $400,000 and $599,999 and 2,620 for under $400,000.

Wellington’s median last month held steady at the December 2009 median price of $400,000 and sales were up from 548 in December 2009 to 586 in 2010. Southland’s December 2010 median is also the same as 12 months ago at $184,000 while Otago’s median price of $235,000 was up 2.17 per cent on the previous year. In all other districts the December 2010 median price is down between 1.5 and 7.5 percent on the same month in 2009 and most districts also reported a fall in sales volumes.

ENDS

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