Median house prices and sales volumes were sharply down in June, with Auckland leading the decline.
The Real Estate Institute of NZ said the national median selling price was $427,250 in June, down 0.6% on May but still up 8.4% on June last year.
But prices declined more sharply in the Auckland region, where the median declined 4% to $600,000 in June, compared to with $625,000 in May.
The biggest decline was in central Auckland (within the boundaries of the former Auckland City Council) where the median fell 7.5% to $655,750 from $709,000 in May.
Median prices dropped throughout the region and were down by -6.5% in Rodney, -0.3% on the North Shore, -4% in Waitakere, and -3.5% in Manukau.
In the Wellington region the median price fell 6.7% to $385,000, with median prices in Northern, Eastern and Southern Wellington and Pukerua Bay/Tawa all posting double digit declines, while prices in Upper Hutt were down 9% and in Lower Hutt they declined by 5.5%.
In Christchurch the median price declined by 1.3% to $430,000 from $435,500 in May but the biggest falls were in provincial Canterbury with the median price in South Canterbury dropping by 21%, Rangiora was down by 15.8% and North Canterbury declined by 13.2% and mid-Canterbury was down 11.1%.
The volume of properties sold was also down on a month by month and annual basis, with 5,763 homes selling in June, down 12.3% compared with May and 6.1% compared with June last year.
REINZ chief executive Helen O'Sullivan said the volume of properties being sold had been declining for several months and in some regions sales had fallen by around 20%.
"At the same time it is now taking five days longer to sell a property than it did 12 months ago," O'Sullivan said.
Around the country - REINZ median selling prices in June
| June 2014 | May 2014 | |
| Northland | $295,000 | $325,000 |
| Rodney | 580,000 | 620,000 |
| North Shore | 747,000 | 749,000 |
| Waitakere | 525,000 | 547,500 |
| Auckland Central | 655,750 | 709,000 |
| Manukau | 560,000 | 580,500 |
| Hamilton | 354,000 | 366,500 |
| Tauranga | 405,000 | 355,000 |
| Mt Maunganui/Papamoa | 420,000 | 461,000 |
| Rotorua | 235,000 | 242,500 |
| Taupo | 332,500 | 364,000 |
| Gisborne | 233,500 | 230,500 |
| Napier | 325,000 | 331,500 |
| Hastings | 269,750 | 273,000 |
| New Plymouth | 346,000 | 310,000 |
| Palmerston North | 270,500 | 299,000 |
| Wanganui | 151,000 | 120,000 |
| Levin | 175,000 | 190,000 |
| Upper Hutt | 305,000 | 335,000 |
| Lower Hutt | 360,000 | 381,000 |
| Northern Wellington | 459,000 | 551,000 |
| Central Wellington | 452,000 | 442,500 |
| Western Wellington | 575,000 | 560,000 |
| Southern Wellington | 464,250 | 540,000 |
| Pukerua Bay/Tawa | 361,000 | 405,000 |
| Nelson City | 375,000 | 358,500 |
| Christchurch | 430,000 | 435,500 |
| Rangiora | 400,000 | 475,000 |
| Timaru | 284,000 | 297,263 |
| West Coast | 180,000 | 220,000 |
| Queenstown | 645,000 | 598,000 |
| Dunedin | 260,000 | 270,000 |
| Invercargill | 171,250 | 176,500 |
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30 Comments
Over the last two months Decile 3, 4 and 5 houses have had an increased share of total sales at the expense of Deciles 7-10. That said, the latter decile's sales still have higher percentages of the total than they would if sales were balanced across deciles.
Quoted REINZ Median prices are still displaced approximately $20,000 higher than the true median.
Decile average prices have stopped rising and are now flat.
Thanks that good to know Colin.
I guess over time, I am expecting to see misleading media headlines implying 'prices are dropping' as the LVR restriction 'effect' wears off on the lower end of the market, even as actual house prices are not changing much, reversing much of the recent effect of rising median prices due to less FHB sales....
Really? Who buys a million $ house with only 20% deposit (or less)? Thats just nuts.
I would have thought LVRs wouldn't have any effect on the higher end, (once you buy your second home, equity has built up in your first home) it's the FHB and highly leveraged investors that would have been temporarily kicked out of the market until they can come up with bigger deposits... I wouldnt have expected them back into the market in numbers for at least 12-24 months....
Only Decile 10 has an average over $1 million ($1,050,000). Decile 7's average is $510,000, Decile 8 is $576,000 and Decile 9 $676,000.
If you are speculating and going for capital gains then I would expect you to a) go for as much leverage as you are allowed and b) buy in the deciles that are appreciating the most (7-10).
The percentages of total sales contributed by each decile are almost identical for March 2013 (pre LVR) and March 2014 (post LVR). Changing a little since March as I indicated earlier.
It's winter, so part of it is seasonal as it is every year ( houses that didn't sell during the summer sell out at a lower price when winter hits ) Plus the average price had been skewed upwards by the LVR restrictions, where people had been selling only more expensive houses. A more realistic figure will be painted once more FHB'ers start buying again bringing the average price back down.
really? Happens every winter?
July 2013
- "6,135 houses sold in June 2013, equal to the number sold in June 2012
- New median high price in Canterbury/Westland
- New National Stratified Index highs for Auckland, Christchurch and Other South Island
- 1,203 houses sold by auction, representing 20% of all sales in June.
- Market continues to experience significant shortages of listings"
July 2012
- "Sales up 17.3 per cent year on year
- New record median price of $372,000
- House prices up 3.3 per cent in 12 months to June"
The REINZ numbers support what I've witnessed at recent auctions where generally speaking the bidding has slowed and the number of people present has dropped.
I think it will be interesting to see what happens in Spring when we typically see an increase in listings. If demand also increases inline with the new listings then the market may continue as usual. However if demand stays subdued while listings increase then we could see a further correction.
Predictions is more your area of expertise BigDaddy. What do you think will happen come Spring?
Another slant from todays Herald which sheds a diiffernt light :
"The number of sales below $400,000 fell by 17 per cent in June, from a year earlier, following a 25 per cent annual drop recorded in May, which the REINZ said may be a reflection of the LVR restrictions. Sales of properties with a price tag of more than $1 million rose 19 per cent in the year, to make up 7 per cent of all sales in June, while sales between $600,000 and $999,999 rose 6.5 per cent in the year to make up 20 per cent of sales. Houses in the $400,000 to $599,999 price range rose 2.3 per cent compared to a year earlier to make up 28 per cent of total sales"
It's a while since I learnt this stuff at school so please excuse if I stuff it up. Wouldn't the figures youquote, all other things being equal, mean that the median house price would move up, the fact that it's down would indicate a real shift downwards in prices?
Somehow i don't think the BoC is going to drive it's currency policy to suit John Key. Nonetheless there is allegedly quite a pullback going on.
http://www.ft.com/cms/s/0/806ae9b2-08ad-11e4-9afc-00144feab7de.html#axz…
http://qz.com/233252/xi-jinpings-corruption-purge-is-pitting-chinas-sta…
aside from forecaste migrant growth, every other indicator seems pretty gloomy to me..interest rate rises, dropping milk powder, sick log market, stagnant wages, exporters struggling with the $....debt crisis Auckland faces. Good luck if you can see anything to hold up these Auckland prices.........
I thought there was a housing shortage.
If there is a shortage, then you would think that the figures would be getting stronger not weaker .
It wouldn't surprise me in the least if we end up with thousands of new built empty houses that no body wants, no body can afford, and no body will rent.
Think about it.
As interest rates rise, potential first home buyers will not buy, because not only will houses be too dear, but paying the mortgage with higher interest rates will be to hard.
And as rents gently increase the squeeze from both sides could end up with hectares of empty subdivisions, half built houses and bankrupt builders.
That's a scary thought BigDaddy.
I think a correction would be good, but a crash would be bad.
Looking at the above numbers 'Auckland Central' dropped from $709,000 to $655,750.
That's a fall of $53,250 in one month. To put that in media terms - thats losing over $1700 a day.
If this type of fall continues over a few months....ouch!
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