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Volume of house sales rises in May both month-on-month and year-on-year but median price drops NZ$10k

Property
Volume of house sales rises in May both month-on-month and year-on-year but median price drops NZ$10k

A total of 5,766 houses changed hands across the country during May, ahead of both April this year and May 2010, with the national median house price down NZ$10,000 month-on-month to NZ$350,000, the Real Estate Institution of New Zealand (REINZ) says.

The national median number of days to sell widened to 45 in May from 43 in both April this year and May last year with signs of a shortage of listings emerging, REINZ says.

The number of houses unconditionally sold in May was 560 higher than in May last year and 779 more than in April this year.

“The May results show further steady increases in volumes across New Zealand with particular strength coming from the Auckland market. Although prices eased slightly, there are signs of pressure building, with a lack of new listings becoming apparent in many parts of the city”, said REINZ chief executive Helen O’Sullivan.

“We are also seeing indications from a number of other parts of the country of an emerging shortage of listings.”

O'Sullivan said the BNZ-REINZ survey of real estate agents showed "poor quality of listings" (22.4%) had emerged as the second most popular reason holding buyers back, replacing "worries about securing finance" (15.9%), and behind "they feel prices will decline" (30.3%). Also moving ahead of the concerns about securing finance category was "not confident they can sell their house" at 20.4%.

"In addition to the tightening market in Auckland, concerns about shortages of listings are appearing in Palmerton North, Taranaki and certain parts of Christchurch," she said.

"Despite volumes rising from previous levels the real estate market is only just starting to emerge from a sustained slump in activity. The number of sales in May 2011 was just 62% of the volumes in the month of May 2007 (5,776 vs 9,285). For the 12 months ended May 2007 there were 105,886 sales compared to 55,389 for the 12 months ended May 2011," O'Sullivan added.

Meanwhile, the REINZ Housing Price Index fell 1.8% in May from the previous month, with the stratified median house price at just under NZ$359,000.

The REINZ Housing Price Index recorded increases in Christchurch and "other North Island," but falls in Auckland, Wellington and "other South Island."

Compared with May last year, the Housing Price Index fell 0.7%, leaving the Index 5.8% below the November 2007 peak.

See REINZ's press release here and full report here.

Volumes sold - REINZ

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(Update adds detail on, and link to, BNZ-REINZ real estate agent survey).

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67 Comments

Prices will keep falling

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Well, this comment sure didn't age well. I've come from the future to advise that time has proven you doom and gloom merchants monumentally & embarrassingly wrong. But you lot did win in one sense as this site has become infested with you people, still regurgitating the same nonsense eight years later, so congrats.

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LOL!

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There is a 'shortage' of listing because vendors are holding back, waiting for 'the good times' to re-emerge. They aren't going to. Then, the log-jam will break, and the market will be awash with desperate vendors, clambering over each other ( I believe it's called "leapfrogging") to attract the ,by now, conditioned purchasers. New Zealand has a finite borrowing capacity at viable interest rates ( Ask the Rating Agencies if you have a doubt!). Today, in Christchurch, we saw a further need to re-allocate that borrowing capacity away from non-productive assets and into repair/replacement. That's less credit available to the property market = lower prices.

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"In addition to the tightening market in Auckland, concerns about shortages of listings are appearing in Palmerton North, Taranaki and certain parts of Christchurch," she said.

Did they pull these regions out of a hat? I've been tracking Palmerston North (my wife's hometown) for two years now, there is a shortage of buyers there, not a shortage of listings!

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But the mountain of existing listings aren't selling - so there must be a shortage of new listings!

:-)

 

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Matie, I don't think it was a HAT they pulled it from!

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I live in Palmerston North; & I agree - there is a shortage of buyers & plenty of properties for sale!  

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The "Full Report" link doesn't seem to be woking. I want to know how my beloved North Shore in Auckland performed...

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Sorry, fixed now.

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"A common theme amongst real estate agents in Auckland is the low level of new listings and increasing buyer frustration in finding properties that meet their needs"

Exactly, no one is investing and no one wants to buy the ex-rentals that the PI's are trying to flick off.

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I was actaully going to PM Bernard today on this point Gareth because of inside knowledge I have of one Auckland area. This particular area has been one of those that have managed to keep ticking over despite the slow down in other areas, but even this area has now fallen flat.

What has been happening is the experience agents have been working all thier contacts hard over the last two years, but even their momentum has finally dropped as they have exhausted all avenues. Agents that up until a month ago still had reasonably number of listings have sold them all, but not been able to replace them.

It is not surprising really as the work that agents do typically has a lagg time of around 12-24 months before it shows up as listings and sales.

What you are now seeing is that last throw of the dice as the work from 12-24 months ago peters out and there is no substance left to replace it. 

Expect a downhill run over the rest of the year and more agency closures.

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as usual the desperate RE mob trying to spin something good out of mediocre results

2011 is looking like another poor year for property all right  

prices edging higher anybody??????

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Horses for courses.  We sold for $100K over what we paid in Dec 2008.  Had 3 offers all within $10K of each by the first weekend.  But then we are looking to buy in an area where property has been on the market for years and was on the QV biggest sliders list.  Alot of developers seem to just be building and hoping stuff will sell.  They seem to be discounting the stuff they have built and trying to inflate the section prices to discourage competition.  For example you can buy a brand new 4 beddie on 700m2 for under $500K, but the sections are still listed at $250K+.  Would cost at least $280K+ to build something similar.   

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Tell that to my friend the builder who this coming weekend is moving into the 3 bedroom home he built from scratch for a grand total of well under $90k. This is no plywood box, it's a very nice home.

There's an enormous margin being added to residential construction in this country, and it's the home buyers who are copping it.

Before you leap about frothing that I'm telling lies and it can't possibly be done, I'll ask my friend if I can post more detailed information about the house and costs here.

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No leaping from me mate.  I've got a mate who built his 3 beddie for $150K, but I'm no builder and I want it finished before xmas.  He also reckoned that the mass builders add about $40K for project management.

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All Auckland values up YoY - volumes all up also - upswing has certainly begun in Auckland.

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Does that really work for you? How you endlessly repeat that the Auckland property market is doing well? Good luck if it does and prevents your spirit sagging to suicidal levels.

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Read the numbers - its all there.

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"Dreeeeaaam...dream dream dream, dreeeeaaam..."

Property spruiking just gets harder, doesn't it SK? Fewer and fewer people are willing to believe the lies and are beginning to see the truth, but still you trundle out the "SHE'S ALL GOING GREAT!" rubbish because you don't know what else to do. At least we get to laugh at you, so it's not all bad.

L.O.L.

 

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I prefer to actually read the report - and the numbers within - which show improving volumes and values year on year.

Probably beyond your reading age.

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Go right on believing every word in the REINZ's press releases. They are 100% factual and do not distort the reality of the situation in any way. Everything will be all right. Just close your eyes and think of England.

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if u prefer QV use them - same trends are apparent.

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When you have finished SK would you please turn off the light?

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QV's national house price index gives the clearest picture of the price change from the peak of 2007 to the end of April (with the movement over the past year in brackets):

* Auckland: down 2.3% (-0.5%) 

* Whangarei: down 19.3% (-5.2%) 
* Hamilton: down 12.1% (-3.5%) 
* Tauranga: down 12.1% (-1.7%) 
* Rotorua: down 12.4% (-1%) 
* Wellington: down 6.3% (-3.4%)

AUCKLAND:

 

THE QUARTER CLIMBERS % UP 

1 Snells Beach +4.5% 

2 Wellsford +4.2% 

3 St Johns +3.4% 

4 Pt England +3.7% 

5 Northcote +3.6% 

6= Highland Park and Westmere +2.7% 

8= Mt Eden, Glendene and Glen Innes +2.6%

THE QUARTER SLIDERS % DOWN 

1 Manurewa East -8.0% 

2 Otara -6.7% 

3 Herne Bay -4.7% 

4 St Marys Bay -2.8% 

5= Favona and Gulf Harbour -2.7% 

7= Kohimarama and Pukekohe -2.2% 

9= Ellerslie and Army Bay -2.1%

Souce:

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=107…

 

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well that pretty much dismisses SK's point 

Here's food for thought....

Even if the EVENTUAL rebuild of Chch gives a bit of a GDP boost to the overall GDP for the country, isn't there a case to argue GDP growth by REGIONs OUTSIDE CHCH is going to be muted for some time???

Especially for SK - what signals in the Auckland economy do you see that make you so bullish about Auckland property? (remembering that health of the housing sector is related to health of economy)  I'll keep an open mind and look forward to your argument, but I really struggle to find optimism in Auckland's economy over the next few years - heck of a lot of funding is going to be diverted to ChCh   

In the field I work in -architecture and engineering - most consultancies have refocussed their growth plans to ChCh - staff, money,investment, skills is going to be diverted out of Auckland

 

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Mate thats quite interesting. Most of the falls are in old established exclusive suburbs and most of the climbers are in the grotholes. Is this due to people not able to afford the super expensive areas moving on to the duds and driving the prices up in those spots? House prices in GI cant be anywhere near the prices in places like Kohi-St Marys Bay-Herne Bay and if people are going there in droves it's bound to push prices up some. But it is probably temporary when things return to an even keel.

Manurewa East and Otara have never been stars let's face it! But the prices at exclusive places and St Marys Bay especially have been going sky high for years until the bubble popped and even now are still ridiculously high for what you get there. No wonder people are flocking to the only places left in the city that could be said to be affordable like Glen Innes and other dumps.

Looking at the market and the recent history of it I can't see property climbing higher for much longer but I can see it all heading down even more soon. The recent climbers are not the norm, I am sure they are just temp bubbles formed by the ones willing to buy in junky areas mostly.

But I am sure Uncle Olly or one of his other log-ins will come along soon and tell us how investment property has never been better and we are all fools for not buying his property off of him for 2007 prices. Lol!

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Most those place listed in the top 10 are OK.  St Johns, Mt Eden, Highland Park are all quite nice.  I think your hate and anger is blinding you.  It's alright that some areas are showing some growth for the most part things are on the way down.  Just take a chill pill and try not to be such a hater. 

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Where's the hatred in LB's comment? It seemed quite reasonable.

Of course some people aren't going to like the opinion that Auckland property isn't booming, but perhaps those are the people who need to chill out and stop being haters?

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She hated on my hood.

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Well I hope he wiped it off and apologised.

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When I first looked at Trademe listings for "New Plymouth District" 2 yrs ago there was 318 listings forsale - as off 2days ago 703 - Where does REINZ see a shortage.

We used to have 5 open homes in NP at the 2007 selling peak" - now there a 2 pages to choose from

Also- 200 odd rentals available.

Couldn't find a house below 300k asking - now theres plenty.

The naki is doin very well - oil exploration / production and Dairy farmers happy with their incomes.

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Who wants to live in New Plymouth wherever that is

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It's a nice place. I'd choose NP over Auckland anyday.

Auckland is just this soulless suburban sprawl, with no heart. A place that tells itself it's a "real" city, when it's just an over grown cowtown on an endless rainy Sunday afternoon, where almost everything still shuts at 5 pm. It's a dull and forgotten rural town with none of the virtues of a real city, but most of the vices of one: lots of stupid, petty crime; ludicrously bad traffic woes; pollution, filth and grafitti; constant noise, etc. Those things are tolerable in places like NYC or Paris or London because with the bad you get the good, but not Auckland.

Still, the harbour and gulf are nice, I'll grant you that. But not worth paying the asked for idiot property prices.

 

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You may like NP - but people vote with their CQ books - and you are clearly outvoted.

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And you are clearly an Auckland real estate agent. A very desperate one.

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Wrong.

ps did you see the piece on Waiheke in Sats paper - all areas over there now are above 2007 peak.

 

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A long time ago, in a different life, I used to conduct interviews with criminals.

Despite everything the news-starved popular media would have you believe, every single one of those criminals was as dumb as a box of bricks.

The crims, on the other hand, were convinced they were the cleverest, most cunning evil geniuses on the planet, capable of selling snow to Eskimoes, etc.

It was bemusing to watch and listen as they told you the stupidest, most transparent pack of lies and bullsh*t you ever heard.

The crims honestly thought their audience was sold.

Property spruikers cause me to experience flashbacks to those days.

 

 

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"A long time ago in a different life"....so you were in the Parliamentary Press gang Anon...can't think of a reason why you would want to escape that wonderful and thrilling job!

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Are Aucklanders being squeezed out of affordable housing by Chinese property speculators? 

http://www.bloomberg.com/news/2011-06-13/chinese-mount-global-homebuying-spree-as-governments-squeeze-local-markets.html

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A lot of Asians bidding at B&T auctions for property in Howick area.

There should be some bargains in a few years when they run them down and the $NZ lowers to make it all seem a lost cause.

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I think the confusion comes out of comparing old listings with new listings.  In most parts of the country the overall inventory is growing, bloated by overpriced, stale properties that have sat with unrealistic vendors and no interest for months on end.  New listings coming on have largely been priced more competitively and have been sold - rising volumes, falling prices.  This is the issue for REs - they have a surplus of overpriced property, but not enough well priced property to sell.   As suggested above, spring will see a rush of properties onto the market as normal, just as inflation bites and interest rates start climbing.  And prices will fall.

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"Read the numbers - its all there."

Um, some suburbs in Auckland took a hamming year-on-year (North Shore / Waitakare), and others don't look good when you take inflation into account.

And then you take Rodney out of the equation, which isn't  Auckland anyway, and the year-on-year growth is basically... "zero".

The figures are all there SK, but you have to sharpen up if you want to get to them...

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Taradale - Napier. Sold signs on many family homes 400 - 550K. Property near te us, large section on 5000m - listed for 1.1 million, sold for 900K - subdivided now with 4 x 800m sections with a build package selling for 500+k ea. 2 sold already. Existing house staying. So plenty of demand (& sales) for quality 4 bed homes in the suburbs in Napier.... And with the OCR about to be lowered again this year to 2.0 then floating rates will be soon down to 4.9% ... it's all good ... silver linings in the soon coming Depression ...

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An old mate of mine used to own a video shop.

He had a method of getting the slow renters out the door.

He would put "Sorry, I'm Out" tags on all the most desirable stuff at the beginning of the day.

As people came in and rented what was supposedly left, he would gradually swap the tags until all of the slow stuff was out and then he'd rent out the popular stuff.

When other shops closed for the night with most of their movies unrented, save the popular new releases, my mate had nothing left on his shelf.

Made a bloody fortune, the cunning old bugger.

RE sleaze did the same thing with the least desirable sections in subdivisions, to get them off the books ASAP.

It's why you used to see "Sold, pending blah blah blah" labels on all the best sections in those pretty sub division plans in your local rag, even though the properties had barely even gone on the market.

Over time, if you paid attention, you'd see the labels moved around, as the RE sleaze flicked off the junk sections and then opened up the better sections, then the best ones, which went much faster than the rest.

Well, that's what they did back in the good old days when people were still buying property.

Now the RE sleaze just sit in their offices all day long weeping, with a loaded revolver in their laps.

Oh for the "Good Old Days", eh?

 

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http://www.barfoot.co.nz/455552

What do you think this gem is worth?

Just watched it get auctioned at the Chancery.

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the land itself is probably valued at around the 600K mark, the building SHOULD be worthless

So it SHOULD have sold for circa 600K

Bet it went for something stupid - 800K?  

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$480k max not taking into account the cost of bringing the property up to a liveable standard.

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Close..............

 

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SK - can you tell me how people are going to be able to keep paying these stupid prices as our crap economy sinks even deeper?

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Was quickly bid up to $885k - I had to step out - but I'm sure they crunched another 10k or so out of the buyer.

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My god, you must lie awake all night trying to think up new ways to spruik a dying market. If you weren't such an unlikable person, I'd almost pity you.

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In 2000 Time Warner paid $350 billion for AOL. Today it's worth, maybe, $35 billion. Someone always pays the top, the last, price. Maybe today's buyer has met their AOL! But if it's one of your properties SK, Well Done!...and good to see you've started to sell :)

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ridiculous

SK - you never reply to my views on the economy and how that will affect house prices in Auckland

Either you can't produce a solid counter argument, or you believe the economy is going to be strong going forward and have just not articulated that?

If you do think we are strong going forward (particularly with reference to Auckland) please explain why

 

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SK is a one trick pony. He wasn't taught how to answer that at his "rah rah buy buy rich rich" seminar.

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A fool and his money are soon parted.

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Never look a gift horse in the mouth .

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even Tony Alexander said a couple of years ago house prices would only go down if unemployment went above 6%

Its still well above 6%

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We may have to wait for the squeeze after Key buys the electorate in November and then sends us all the bill.

;o)

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still waiting SK.....

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I detailed my views on this at length previously - will try and find it and paste it in.

I will add here however, that with the current govt - the rich are getting richer - and this is set to continue.

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OK so some of the high end locations may remain strong

but how about the remaining 90% of the market 

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SK still waiting!

Surely you've had enough time to think of a compelling argument why Auckland's economy is going to be strong in the next 2 years supporting house price growth

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Pumpkin Patch cuts 55 jobs:

 http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10732435

that recovery the bank economists and the pollies  and SK harp on about is looking really really promising...

yeah right

 

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Greg Muir won't have any companies he's been associated with left to put on his resumé

 soon! I wonder if he'll leave PPL off, like he did Hanover, now he's no longer actually there?

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gotta love it, full page ad in this week's Property Press with a Peter Thompson quote in big bold letters proclaiming average prices eased

priceless, thats going on my wall

good on them I guess - at least they haven't hidden the truth - far from it!!!

SK, still waiting

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