Manawatu¯ house sales plummet

The level 4 lockdown has hit the housing market hard, with sales volumes falling by hundreds across Manawatu¯.

But the cost of buying continues to rise as record median prices have been recorded in Palmerston North and Rangitı¯kei.

Figures from the Real Estate Institute of New Zealand show home sales plummeted last month by 87.2 per cent compared with the same month last year.

Fewer than 10 houses were sold in each of Horowhenua, Manawatu¯, Palmerston North, Rangitı¯kei and Tararua during April.

Palmerston North was the worst hit, as sales volumes fell by 93.2 per cent year-on-year after nine houses were sold last month.

There were no sales recorded in Ashhurst, Foxton or Foxton Beach, while only seven properties were sold in Feilding.

The sales trend was the same across the country, with sales numbers dropping 78.5 per cent year-on-year, and 82.2 per cent compared with March.

The drop in volume was forecast earlier by realestate.co.nz, which was getting an average of 717 new listings each day. That dropped to an average of 188 in alert level 4.

Despite the dramatic drop in sales, Palmerston North and Rangitı¯kei median house prices hit new highs – $595,000 and $368,000, respectively.

The institute’s Manawatu¯ spokesman Andy Stewart, also an agent at Professionals Unique Realty, said April was unprecedented territory for the real estate industry.

The lockdown restraints came with predictable results for the market, he said.

Activity is picking up, though. The realestate.co.nz data showed there were 508 new listings each day during the first week of alert level 3.

Stewart said Manawatu¯ was in a strong position, because the local economy was not driven by tourism.

The blend of more stable jobs, such as in the Defence Force and primary industries, and major infrastructure projects in the pipeline would keep money coming into the region.

‘‘I’m certainly not bold enough to try and make too many predictions, however, I’m confident that our local market will not take the predicted hit of a reduction in price by 10 to 15 per cent.’’

May had started well. Real estate companies were keeping busy with new listings and inquiries from buyers.

Data also showed the time to sell had dropped dramatically. The 10-year average was 40 days, but it was now at 22 days.

It was a sellers’ market before the lockdown and initial reports suggested many properties were getting multiple offers this month – a positive sign for those selling, Stewart said.

Record median prices have been recorded in Palmerston North and Rangitı¯kei.