House sales volumes lowest in 26 years

National sales of residential property reached their lowest levels in 26 years during August, the Real Estate Institute of New Zealand (REINZ) said. Sales dropped to 4,420 in August, down from 4,489 in July, showing that the recovery seen in July proved premature, said the REINZ Property Market Report. "It looks as if the leading economists are on the money with predictions of a 5 to 10 per cent decrease in the market, followed by a period of stability at the end of this year or early in 2009," REINZ National President Murray Cleland said. "The drop in sales was a concern because history tells us that the market normally recovers from the winter blues from September 1, so all I can say is there is a lot riding on spring," Cleland said. Sales volumes decreased in eight out of the twelve regions throughout the country. They were: Auckland, Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Wellington, Canterbury/Westland, Central Otago Lakes and Otago. Volumes rose in the Hawkes Bay, Nelson/Marlborough and Southland. The sales volume in Northland remained the same, at 119 during August. Auckland volumes were down 4% from July, from 1,411 to 1,350. Both Central Otago Lakes (69 to 60) and Otago (217 to 188) saw falls of 13%. Manawatu/Wanganui volumes fell 10% from 230 to 208, with Wellington (503 to 458) falling 9% along with Waikato/Bay of Plenty (637 to 577). The three regions that saw rises were between 3% and 6%.