House supply 'really tightening', REINZ

Property

REINZ says June sales volumes up year-on-year, national median price up NZ$10k but Auckland down NZ$3k

14th Jul 11, 12:19pm by Gareth Vaughan

The Real Estate Institute of New Zealand (REINZ) says 5,229 houses were sold during June, up by 654 year-on-year, with the national median house price up NZ$10,000 and national median days to sell down a day to 44. REINZ warned, however, that supply of properties is "really tightening."

REINZ said the volume of sales in June rose 654 from June 2010, but was down 537 versus May 2011, a decline it said was broadly in line with normal seasonal patterns.

The national median house price rose by NZ$10,000, or by 2.9%, to NZ$360,000. However, in Auckland, which accounted for 40% of national volume, the median price fell NZ$3,000 from May to NZ$461,000. The strongest June price rise came in Northland, up 13.2%, followed by Central Otago Lakes up 7%, and Southland up 2.2%. Hawkes Bay and Otago prices both fell 5%.

Sales volumes in Nelson/Marlborough, Auckland and Waikato/Bay of Plenty all recorded increases of more than 20%, REINZ said.

“The June results show that activity levels are recovering slowly with prices more or less flat, but we are getting strong indications from agents in many of our regions that the supply of properties is really tightening”, said REINZ Chief Executive Helen O'Sullivan.

“Rather than an influx of buyers, we are seeing very low levels of listings as sellers continue to sit on their assets," O'Sullivan added.

She said the latest BNZ-REINZ market survey of real estate agents corroborated this, indicating the shortage of listings was now the main reason holding buyers back from purchasing a property. See story on the BNZ-REINZ survey here.

The national median days to sell, which measures the number of days from listing date to unconditional date, dropped by one day to 44 in June from 45 in May. It was also 45 in June 2010.

See REINZ's full release here and its residential market statistics here.

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Source: REINZ

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21 Comments

by me | 14th Jul 11, 12:28pm 1310603285

There are a lot of mixed messages at present, some indications that it is a declining market, some that it is stagnant, and some that it is a consolidating market. We need to get a bigger picture over a longer period of time to see what the trend is. At this stage it still pretty much seems a flat market, but it's certainly not doom and gloom ( except for most bloggers on interest.co.nz).

by Boatman | 14th Jul 11, 2:14pm 1310609656

@Me you have summarised the scenario pretty well . Its a pity the Real Estate sector does not probe and question its statisitcs properly .

Its my view that many potential sellers have left the market and are now spectators, either because they wont accept the prices being offered , or worse ....they are under water ( ie house worth less than all the mortgages) .

Many Kiwi's seem to be simply staying put and paying off existing debts , and there is sufficient emperical evidence to support this view.

Given that about 1/3rd of all Estate agents have left the sector , I would guess that its in a bad state , and is consolidating right now .

Banks are still sticking to their deposit requirements , and Dr Bollard has signalled a rate increase.

Its actually all looking quite bleak, and the Real Esate sector cant see it

I dont see things improving anytime soon

by Wolly | 14th Jul 11, 12:34pm 1310603647

Now turn to the other report..the one that points to Bollard ending his near zirp game of "pork the market for the election"...and ask yourself what will happen as rates rise and rise....who knows how high...the piigs fiasco and the printing at the fed and Beijing inflation...so what does all that mean for the so called housing market 'recovery'?

by me | 14th Jul 11, 12:52pm 1310604749

Exactly,as I said, 'except for most bloggers on interest.co.nz', I could have said, 'such as Wolly'

by Bobby | 14th Jul 11, 12:41pm 1310604101

Wifes Aunty has just sold her large house in Auckland for good money. She needed to get something smaller. It was on the market for only 2 weeks. Sold to Asians. Dont know from which country.

by doublegz | 14th Jul 11, 1:23pm 1310606580

Must be Hong Kong, family with megabux.

by Your Landlord | 14th Jul 11, 1:28pm 1310606894

More pieces of good news in the house market.

That bell is still ringing Nick A.

:-)

by Nicholas Arrand | 14th Jul 11, 1:42pm 1310607739

Really? You mean Dr. B being able to remove the emergencey interest rate cut is good news? Maybe it's time to get out and fix for 7 years @ 8.3 %, Your Landlord. Make a bit of a difference from the floating rate, doesn't it. Or maybe the prospective buyers can run the gauntlet? So, yes, that clock is ticking. The time left to sell, is passing quickly.

by Carpetbagger | 14th Jul 11, 1:47pm 1310608055

"However, in Auckland, which accounted for 40% of national volume, the median price fell NZ$3,000 from May to NZ$461,000."

Average up (QV) Median down (REINZ) in Auckland, and then reports of first home buyers being the dominant force.

What is one supposed to think?

by Matt in Auck | 14th Jul 11, 2:02pm 1310608969

I think, looked at overall, that Auckland is flat

"ME" correctly advises that we'll need to look longer term (end of the year?) to get a really good picture of what has been happening

by Carpetbagger | 14th Jul 11, 7:12pm 1310627572

Our kids are growing up and like you we want to be in good school zone. Currently in Otahuhu (or a my wife likes to call it "Mount Wellington South") with 12 months left to run on the mortgage.

Have to say, knowing when to make the move is doing my head in!

by Matt in Auck | 14th Jul 11, 8:10pm 1310631038

In my experience its very common for people to sell up their house and then rent within the Grammar zone.

We lived in a cheaper part of Auckland until our son reached intermediate age, then we moved to rent in Remuera and he went through Remuera Intermediate and is now at Grammar.

Of course not all boys suit Grammar, but for our son its been amazing.

by Carpetbagger | 15th Jul 11, 8:13am 1310674398

Might be time to consider the renting option - the "home ownership" mantra might be clouding my judgment...

by mandalay | 16th Jul 11, 2:24pm 1310783079

hey mate, keep the home, rent it out and use the rent you make to suppliment your rent in a better school zone... win win!

by dug | 14th Jul 11, 2:01pm 1310608908

tried to sell a top house in wanganui on the market for months only lookers who wanted it way below a new gv took it off the market

by Kate | 14th Jul 11, 2:10pm 1310609438

dug, when you bought it did you pay way below it's current GV?

by MikeM | 14th Jul 11, 8:17pm 1310631434

I've had my house on the market for 3 months with very little enquiry. So if listings are few, there must be even fewer buyers.

by Matt in Auck | 14th Jul 11, 8:20pm 1310631619

MikeM - the market is nowhere near as hot as the spruikers are trying to lead us to believe. they are desperate and thats why the hype has come out again

by doublegz | 15th Jul 11, 9:39am 1310679576

Matt, city-fringe suburbs such as Remuera and the eastern bays are doing OK. Presentable quality houses with at least 450 sqm are selling well from what I have observed, e.g. No 40 Dell Ave was sold for 1.81M last year and I thought it was too high. It was in the market again this year and someone snapped it up for 1.82M which is telling me there are buyers hanging around. Now 154 Upland Road is going through the same cycle...I think it will be gone soon =)

by Matt in Auck | 14th Jul 11, 9:38pm 1310636315

just got the latest Property Press - Central Auckland, it looks like its been to weight watchers - the thinnest I've ever seen it!

by Nicholas Arrand | 14th Jul 11, 10:02pm 1310637736

Not much point spending the advertising dollars if things aren't going to sell, Matt :) It also 'looks better' and reinforces the 'property shortage' myth. Besides, it's winter. Who can be bothered fighting this cold weather to tramp around properties trying, forelornely, to look their best? Or having muddy feet trample through your offering....