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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21 Comments
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).
@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
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'?
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.
"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?
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.
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 =)
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....
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