Waikato house sales take a dive while prices increase

National sales fell by 20 per cent in June as listings tightened, REINZ reports. Waikato’s housing market mirrored national trends as house sales fell sharply throughout the country last month, despite the national and regional median price slightly increasing.

Latest figures from the Real Estate Institute of New Zealand (REINZ) show 6135 homes were sold nationally in June, down 20.5 per cent on May.

The national median price rose by $2000 over the same period, to $394,000.

Waikato-Bay of Plenty sales dropped from 1076 in May to 910 in June, while the median house price increased marginally by $500, from $319,500 to $320,000.

Taupo was the only area in WaikatoBay of Plenty to experience increases in June, while the rest of the region’s sales dropped off.

Hamilton city saw 248 sales processed in June, down from 301 the previous month; Waikato country sales also took a tumble, from 224 in May down to 148.

Comparing the numbers year on year produced a fairer result.

The region saw annual sales increases of 3.8 per cent, with market growth in the rural Waikato and the eastern Bay of Plenty, and a median price increase of $900 in the year to June 30.

REINZ Waikato director Philip Searle said it was solid growth, although prices across the region remained patchy.

‘‘Both first home buyers and investors are becoming more active in the market with the number of listings tightening but not to the same extent as Auckland,’’ he said.

In Auckland, sales dropped from 3061 in May to 2485 in June and the median price declined from $565,000 to $555,000.

In Wellington the number fell from 785 to 590 over the same period, while the median price increased from $390,000 to $400,000.

Canterbury numbers declined from 1012 to 773 while the median price increased from $360,000 to $365,000.

However a two-tier market continues to develop, with prices rising strongly in Auckland and Christchurch and the market remaining mostly flat in the rest in the of the country.

REINZ director Bryan Thompson said almost all of the recent increases in the national median price had been driven by rising prices in Auckland and Canterbury.

‘‘Price gains in other regions have been minimal, with the median price for the rest of New Zealand $2300 lower than November 2007,’’ he said.

An apparent unwillingness by homeowners to put their properties on the market was also creating a shortage of listings.

‘‘The continuing strength of house prices in Auckland and Canterbury is being driven by the rising imbalance between supply and demand, with the number of properties coming to market from new builds and existing owners falling well short of the demand for housing,’’ he said.

‘‘The number of houses available for sale is an issue for most regions in New Zealand.’’