Seasonal dip in house sales
The housing market recorded a mixed bag, so the latest sales figures reveal.
Manawatu¯ /Whanganui was one of five regions to experience a record median house price, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
Overall, January has pointed to a two-tiered real estate market continuing with 14 out of 16 regions experiencing annual increases in the median price for residential properties, says REINZ chief executive Bindi Norwell.
January has pointed to a two-tier market continuing around the country with Auckland and Canterbury experiencing a slow down in price, but the rest of the country has seen strong price growth, including five regions achieving record median prices.
‘‘This increase in price once again highlights how the lack of supply is continuing to push up house prices, therefore, it’s essential that as a country we address this fundamental issue sooner rather than later.’’
From an Auckland perspective, the median house price in January of $800,000 was the lowest seen for 35 months with falls across Franklin, Rodney, North Shore and Papakura districts during the month ranging from -0.7 per cent to -13.2 per cent. However, Auckland City, Manukau City and Waitakere City all saw annual increases of between 1.5 per cent and 9.5 per cent showing that there are pockets of growth occurring across the region.
Norwell says December and January usually see prices decline and then pick up again in February and March.
‘‘We’ll be watching closely to see whether this is just the usual Christmas/new Year slowdown or whether this is the start of something wider. What we can say, is that it’s too early to call this a trend and it’s too early to confirm whether the Auckland market has actually turned.’’
Across the country, five regions experienced record median prices:
Manawatu¯ /Wanganui: +21.7 per cent to $348,000 (up from $286,000 at the same time last year)
Waikato: +12.6 per cent to $550,000 (up from $488,500 at the same time last year)
Marlborough: +16.3 per cent to $477,000 (up from $410,000 at the same time last year)
Otago: +6.4 per cent to $475,475 (up from $447,000 at the same time last year)
Southland: +15.6 per cent to $277,500 (up from $240,000 at the same time last year).
Outside of those records, regions with the biggest annual increase in median price were:
Gisborne: +21.1 per cent to $333,000 up from $275,000
Northland: +14.1 per cent to $485,000 up from $425,000
Wellington: +12.2 per cent to $562,000 up from $501,000.
Locally only 73 house sales were recorded during January in Palmerston North. This decrease on the 117 sales recorded last month in December 2018 is also a decrease on the 101 sales recorded last year in January 2018.
REINZ spokesman for Manawatu¯ Andy Stewart says of the 73 sales, it is interesting to note that only 10 (14 per cent) were under $300,000, and a total of 36 (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 on the rise. There is now a lesser number of sales occurring under $400,000 price range. There were 22 sales recorded between $400,000 and $500,000 (30 per cent) and 15 sales above $500,000 (20 per cent) of these sales one was recorded above $1,000,000.’’
Stewart says listings have increased slightly, however, the available listings are still at a critical low level between 230 and 240.
There were only two section sales recorded in January as the availability of sections decline.
Stewart says the drop in the number of sales is to be expected as December and January are regarded as short months. He says sales this month are showing a lift and he says he is confident sales will increase to the level that was seen in October and November of around 120 to 140.
‘‘Listings are still critical but properties are selling quickly and the market is still buoyant.’’
Stewart says agents are seeing 10 to 20 people at open homes, especially at homes at the lower end of the market.
‘‘I do sympathise with first home buyers and I always warn them against getting too attached to a house until it is under contract. What a lot of people don’t realise is that if a property goes under contract we still have to market it until it goes unconditional and we put up the sold sign, otherwise the vendor won’t have any back-up offers if the sale doesn’t go through.’’