Sales re­cover while res­i­den­tial prop­erty me­dian treads wa­ter

Southern Real Estate Guide - - PROPERTIES IN PROFILE -

Res­i­den­tial prop­erty sales re­cov­ered in Oc­to­ber but low vol­umes con­tinue to dis­tort res­i­den­tial prop­erty sta­tis­tics, ac­cord­ing to the Real Es­tate In­sti­tute of New Zealand Inc (REINZ).

Oc­to­ber sales re­cov­ered by nearly one thou­sand to 6854 in Oc­to­ber com­pared with 5894 in Septem­ber, which was the low­est since the 2001 sales of 5550 and al­most half the Septem­ber 2003 sales of 10,686.

But Oc­to­ber sales re­main 2000 sales lower than the Oc­to­ber 2006 sales fig­ure of 8857, caus­ing ‘price static’ in some re­gions ac­cord­ing to REINZ na­tional pres­i­dent Murray Cle­land.

The na­tional res­i­den­tial me­dian price eased from $ 351,500 in Septem­ber back to the Au­gust fig­ure of $ 350,000, nev­er­the­less show­ing a de­gree of de­ter­mi­na­tion in the face of a slow­ing mar­ket, Murray says.

“ Some of the re­gional sta­tis­tics are be­ing un­duly in­flu­enced by low vol­umes and gen­er­ally ar­eas where prices are hold­ing up are the likes of Auck­land re­gion and Auck­land metropoli­tan where the re­gional price is up from $ 441,500 in Septem­ber to $ 445,000 in Oc­to­ber, while the Auck­land metropoli­tan prices, which might have been ex­pected to fall, hung on stead­fastly with an un­changed me­dian of $ 445,000.”

Murray says that North­land and Hawkes Bay are ex­am­ples of ar­eas with ‘price static’ where low vol­umes were skew­ing me­dian prices.

North­land’s me­dian was down from $ 320,000 in Septem­ber to $ 310,000 in Oc­to­ber but of the two com­po­nents, Whangarei City had an un­changed me­dian of $ 305,000 while Whangarei County saw its me­dian fall from $ 482,000 in Septem­ber to $ 376,500 – but on re­spec­tive monthly sales of just 17 and 20 trans­ac­tions.

In Hawkes Bay the me­dian was down from $ 285,000 to $ 262,000 largely be­cause of trans­ac­tions of less ex­pen­sive prop­er­ties, with the Hawkes Bay Coun­try price down from $ 400,000 to $ 282,500, but on just 16 sales in Oc­to­ber.

And while Hast­ings City saw an in­crease from $ 283,250 to $ 289,500, Napier City, just a few kilo­me­tres up the road, saw its me­dian fall from $ 306,000 to $ 272,900.

“In other words our ad­vice is don’t read too much into th­ese me­di­ans in this cur­rent mar­ket,” Murray says.

How­ever, it was clear that the rate of an­nual growth in prop­erty prices was now slow­ing markedly with the an­nual per­cent­age growth rate down to 8.02 per cent for the 12 months to Oc­to­ber, com­pared with the rate of 12.30 per cent to Septem­ber.

Murray Cle­land says that the an­nual per­cent­ages were heav­ily in­flu­enced by those ar­eas which had seen price growth in the ear­lier part of the cy­cle, such as Hawkes Bay, which reg­is­tered a 5.15 per cent de­crease in year on year prices, while South­land was at the tail end of the cy­cle and was still show­ing a 24 per cent year on year per­cent­age in­crease.

He says the be­gin­ning of spring helped the mar­ket to re­gain some vol­ume and there ap­peared to be no great pres­sure on prices, but with days to sell length­en­ing na­tion­ally from 32 to 34, it was clear that real es­tate agents were hav­ing to work hard for ven­dors to get buy­ers across the line.

Of the 12 re­gions, eight ex­pe­ri­enced falls and only four saw rises in me­dian prices.

Auck­land’s per­for­mance was largely sup­ported by the North Shore mar­ket, which de­spite lower sales saw its me­dian up from $ 520,000 to $ 545,000 and Manukau City up from $ 430,000 to $ 447,000.

Auck­land City was down slightly from $ 480,000 to $ 479,000 but on sales up from 641 to 778.

The Waikato and the Bay of Plenty was up from $ 322,750 to $ 329,000, with Tau­ranga up from $ 358,000 to $ 406,000, while Hamil­ton City and Mount Maun­ganui/ Pa­pamoa were down.

Manawatu/ Wan­ganui was an­other re­gion to ex­pe­ri­ence a fall in me­di­ans, from $ 240,000 to $ 233,250 while Taranaki fell from $ 265,000 to $ 262,250.

Swelling eased back from $ 380,000 to $ 365,000 in Welling­ton, but Nelson/ Marl­bor­ough was up from $ 330,250 to $ 347,000.

Can­ter­bury/ West­land re­gion was down from $ 315,000 to $ 310,000, but Cen­tral Otago Lakes lived up to its rep­u­ta­tion for big prices and big fluc­tu­a­tions with a me­dian up from $ 477,500 in Septem­ber to $ 545,000 in Oc­to­ber as a re­sult of the Cen­tral Otago me­dian ris­ing from $ 408,000 to $ 445,000, and the Queen­stown me­dian ris­ing from $ 584,000 to $ 614,000, but on low vol­umes.

Otago was back slightly from $ 236,000 in Septem­ber to $ 235,000 in Oc­to­ber while South­land ex­pe­ri­enced a fall from $195,000 to $186,000 af­ter a stel­lar year.

The me­dian sales price for a house in Auck­land rose to $ 445,000 in Oc­to­ber, from $ 441,500 in Septem­ber. In to­tal, 2240 houses sold – well up on the 1956 sold in Septem­ber. In Oc­to­ber 2006, 2991 houses sold with a me­dian price of $ 415,000.

The me­dian sales price for a North Shore City home rose to $ 545,000 in Oc­to­ber from $ 520,000 in Septem­ber and $ 507,250 in Oc­to­ber 2006. 331 houses sold in Oc­to­ber ( Septem­ber 2007: 341; Oc­to­ber 2006: 570).

Sales vol­ume in­creased in Waitakere City in Oc­to­ber with 340 houses sold (Septem­ber 2007: 264). The me­dian price eased to $ 365,000 from $ 375,000 in Septem­ber. In Oc­to­ber 2006, 406 houses sold with a me­dian sales price of $ 343,000.

The me­dian price for a house in Auck­land City fell slightly to $ 479,000 in Oc­to­ber ( Septem­ber 2007: $ 480,000; Oc­to­ber 2006: $ 445,000). 778 houses sold in Oc­to­ber ( Septem­ber 2007: 641; Oc­to­ber 2006: 917).

483 houses sold in Manukau City in Oc­to­ber, up on the 434 sold in Septem­ber (Oc­to­ber 2006: 646). The me­dian price rose to $ 447,000 from $ 430,000 in Septem­ber and $ 391,000 in Oc­to­ber 2006.

Sales eased in Pa­pakura in Oc­to­ber with 63 houses sold ( Septem­ber 2007: 67; Oc­to­ber 2006: 101). The me­dian price also fell to $ 342,000 from $ 363,500 in Septem­ber (Oc­to­ber 2006: $ 313,000).

The me­dian price for a Metropoli­tan Auck­land house re­mained steady at $ 445,000 in Oc­to­ber, the same as it was in Septem­ber (Oc­to­ber 2006: $ 415,000). In to­tal, 1995 houses sold ( Septem­ber 2007: 1747; Oc­to­ber 2006: 2640).

133 houses sold in the Rod­ney Dis­trict in Oc­to­ber, up on the 98 sold in Septem­ber (Oc­to­ber 2006: 187). The me­dian price eased to $ 475,000 in Oc­to­ber from $ 490,750 in Septem­ber (Oc­to­ber 2006: $ 425,000).

The me­dian price for a house in the Franklin Dis­trict eased to $ 380,500 in Oc­to­ber, from $ 385,000 in Septem­ber. 78 houses sold dur­ing the month, up on the 67 sold in Septem­ber. In Oc­to­ber 2006, 110 houses sold with a me­dian price of $ 343,250.

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