Autumn Provides Few Falls For Real Estate Market
News Release 11 May
2011
Autumn Provides Few Falls For Real
Estate Market
The national
housing market recorded a lift in volumes during the month
of April, with the seasonally adjusted number of sales up
3.0% compared to March, according to REINZ figures, the most
up-to-date data on the New Zealand real estate market.
Across New Zealand 4,987 unconditional sales were reported
for the month of April as the market came off the
traditional March peak. The national median house price
eased by $5,000 to $360,000 from March 2011, but was up
$4,000 compared to April 2010.
“The April results reflect a steady market across New Zealand with signs of a lift in prices in the South Island, and Auckland prices still solid with limited supply ,” said REINZ Chief Executive Helen O’Sullivan, “Volumes across the country were stronger than we expected on a seasonally adjusted basis, with only Manawatu / Whanganui and Wellington showing negative volume movements. The results reflect some cautious optimism with no great outbreak of smiles but certainly fewer frowns.”
The Auckland region recorded a new all time high median house price in April of $479,500. Prices in the South Island also showed some strength in April 2011 compared with the previous month, with Otago recording a 9.3% increase, Central Otago Lakes 8.2% and Canterbury/Westland 6.9%. On a seasonally adjusted basis Central Otago Lakes and Otago recorded the strongest lifts in volumes in April compared to March 2011, although the 72% lift in Canterbury/Westland’s volumes reflected both the extraordinarily low March and an easing of previous difficulties in obtaining insurance in this market.
O’Sullivan said, “Auckland continues to lead the overall market in terms of price, with prices rising 2% compared to March and up 2% compared to April 2010. The Auckland region’s days to sell also dropped in April, down to 34 days, with the region continuing to lead the national statistics in terms of days to sell, reflecting the continued tightening conditions in the Auckland market.”
The national median ‘days to sell’ (measuring the number of days from listing date to unconditional date) eased from 41 days in March 2011 to 43 days in April 2011, compared with 40 days in April 2010. Auckland recorded the shortest days to sell at 34 days, reflecting the shortage of listings in this market, with Hawkes Bay next shortest at 41 days. Across the country all regions other than Wellington, Southland and Nelson/Marlborough recorded a decrease in days to sell. Northland remained the region with the longest number of days to sell at 73 days; however, this is a 21 day improvement over the March 2011 measure of 94 days.
Volumes in Christchurch City have staged something of a recovery in April, with 315 sales in the city in April 2011 compared with 193 in March 2011 and 511 in April 2010. While still a long way from previous activity levels, this indicates that the market is finding its way to a “new normal”. The median price in Christchurch City increased by almost 5% compared to March 2011 and increased 1.5% compared to April 2010. The timing of the recovery in transaction numbers is similar to that experienced after the September 8 earthquake and prices continue to firm in the city. As might be expected given the damage footprint, the recovery is not evenly spread, with some areas continuing to report extremely low numbers of transactions.
Further Data
Across New Zealand the total value of residential sales, including sections rose to $2.21 billion in April 2011, compared to $2.62 billion in March 2011 and $2.17 billion in April 2010.
The breakdown of the value of properties sold in April 2011 is:
$1 million plus 210 4.2%
$600,000
to$999,999 638 12.8%
$400,000 to
$599,999 1,245 25.0%
Under
$400,000 2,894 58.0%
All Properties
Sold 4,987 100.0%
The REINZ Housing Price Index rose 1.1% in April compared with March 2011, with the stratified median house price at just under $365,600. The REINZ Housing Price Index recorded increases in Auckland, Wellington and Other South Island, but also recorded falls in Christchurch and Other North Island.
Compared to April 2010, the Housing Price Index fell 0.4%, and the Index is now 4.0% below the peak recorded in November 2007. The Section Price Index fell 8.1% in April 2011 and is now 23.1% below its peak recorded in July 2008. (see table and chart below).
REINZ Housing Price Index
Chart
REINZ
Stratified Median Housing Price Index
Statistics
Index Level 1
Month 3 Months 12 Months 5 Years
(CAGR)* From
Peak
New
Zealand 3245.4 1.1% 4.0% -0.4% 2.3% -4.0%
Auckland 3558.7 2.3% 7.5% 5.5% 3.2% -2.1%
Wellington 3377.7 1.4% 5.1% 0.2% 3.4% -3.4%
Christchurch 2812.0 -6.1% 0.2% -4.2% 0.9% -9.1%
Other
North Is 3057.1 -0.6% 0.2% -4.0% 0.7% -10.3%
Other South
Is 3294.7 1.9% 3.7% 0.6% 2.0% -6.1%
Sections 4157.6 -8.1% -13.1% -8.2% -1.2% -23.1%
* CAGR
is Compound Annual Growth Rate
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