Median price hits record
The latest property sales statistics are out and things are looking positive for the region.
The median house price in Palmerston North reached a record level of $400,000 last month, the latest data from the Real Estate Institute of New Zealand shows.
This is considerably up on the June 2018 figure of $387,000 and the July 2017 level of $360,000.
A total of 119 houses were sold in Palmerston North during July, the same number that sold during June and not far off the 122 houses that were sold in July 2017.
REINZ spokesman for Manawatu Andy Stewart of Professionals says the market continues to show positive trends, however, a critical lack of available listings is affecting the volume of sales throughout Manawatu¯ .
He says listings remain at a critical level, dipping under the 190 mark to between 180 and 185.
‘‘Incoming inquiry levels continued to be strong and first home buyers are active in the market and this continues to stimulate the lower end of our market. These factors have continued to cause a roll up effect in activity mid-market with vendors selling their first homes and rebuying at a higher level.’’
Stewart says interest rates remain attractive and affordable which in turn stimulates all levels of the market.
‘‘Buyer activity for new listings is still very strong with many agencies reporting strong buyer interest resulting in a large number of multiple offers from buyers creating optimum prices and quick sales for sellers.’’
Stewart says attendance at open homes varies but in general midrange homes and new listings are attracting good numbers.
‘‘There has been very strong buyer inquiry for lifestyle properties currently on the market and this is also very positive for the region.’’
Stewart says of the 119 sales last month, it was interesting to note that only 18 (15 per cent) were under $300,000 and that a total of 60 (50 per cent) were under $400,000.
‘‘This continues to indicate that in comparison to other areas around New Zealand our city still has a number of affordable homes available, although prices are definitely rising and there are fewer sales in the under $400,00 price range.’’
There were 27 sales (23 per cent) recorded $400,000 and $500,000 and 31 (26 per cent) over $500,000. Three sales were in excess of the million dollar mark, which Stewart says is another positive for Palmerston North.
The number of days to sell a property has dropped to 24.
In Palmerston North no sections were sold during the month, however two sections were sold in Feilding and one in Ashhurst.
In Feilding 21 houses were sold last month, a drop on the 26 sold in June but up on the 17 sales in July last year. In Ashhurst five houses were sold.
House prices across New Zealand have continued to rise in July with a 6.2 per cent increase in the median price for the country of $550,000, REINZ chief executive Bindi Norwell reports.
‘‘For New Zealand excluding Auckland the increase was even greater with an 8.6 per cent annual increase from $419,000 to $455,000.’’
Norwell says the shortage of properties available for sale across the country is continuing to push prices up in all regions except Auckland which has seen a 0.1 per cent drop to a median price of $835,000.
‘‘With July producing another four regions with record median prices we desperately need to increase the supply of new houses — be that through Kiwibuild or from private developers and builders — in order to fill the significant shortage of properties across the country.’’