House market shows signs of improvement

Good news for anyone thinking about selling a house: Conditions for sellers may be improving.

The Real Estate Institute has released its statistics for July, which show the number of homes sold across the country in the month lifted 3.7 per cent from the same time last year to 6118.

It was the highest number of properties sold in a July month for three years.

In Auckland, the rate of sales increased 6.6 per cent, year-on-year, to 1894. Volume growth was particularly strong in Papakura, Manukau and Waitakere.

Nelson had an increase in turnover of 25 per cent. Gisborne was up 14.9 per cent, Canterbury 14.6 per cent and Marlborough 13.7 per cent.

‘‘This is the first time in eight months that we’ve seen the number of properties sold around the country increase on an annual basis, suggesting that we’re starting to see some early signs of growth,’’ chief executive Bindi Norwell said. ‘‘Some of this can be attributed to more certainty post the removal of the capital gains tax, but it’s also about pockets of renewed confidence and parts of the market finding its new normal in terms of pricing.

‘‘With August’s surprise 50 basis points drop in the official cash rate, going forward we expect to see even more signs of growth – especially as we move towards the warmer weather when we tend to see more activity in the market.

‘‘Looking around the country, nine out of 16 regions saw annual increases in sales volumes with strong growth recorded at the top of the South Island and the middle of the North Island.’’

Economist Brad Olsen, of Infometrics, said it was too soon to say the housing market was recovering. ‘‘After eight months of falling annual sales growth, it’ll take more than one positive month to make that sort of call.’’