July Residential Property Sales A Ten Year Low
13 Aug 2010
Residential property sales turnover is the lowest for a July in a decade but prices in Auckland, Wellington and Christchurch are still up on last year, according to figures released today by the Real Estate Institute of New Zealand (REINZ).
Nationwide sales slipped from 4,575 residential property transactions in June to 4,411 last month, the lowest July total in ten years, but still higher than the record low of only 3,666 dwelling sales last January. The highest number of residential property sales in July was 10,150 in 2003.
Nationwide prices also fell in July 2010 as measured by the REINZ Monthly Housing Price Index. The index based on methodology derived by the Reserve Bank of New Zealand (see footnote) decreased by 1.2 percent to 3191.5 in July from June. In the three months to July, the index shows housing prices decreased by 1.1 percent.
Compared to 12 months earlier, the REINZ Housing Price Index increased by 1.8 percent.
The trend was strongest in Auckland, Wellington and Christchurch where prices remained higher than they were in July 2009 with Christchurch prices up 7.4 percent, Auckland up 1.7 percent, Wellington up 1.1 percent and other North Island suburbs up 2.2 percent. Prices in South Island suburbs other than Christchurch were down 2.7 percent from July 2009.
REINZ spokesperson Peter Thompson says: ‘We are seeing a similar pattern to last month with sales volumes down but prices remaining stable in contradiction of predictions of a falling market.. ‘Good sales are still being made and properties priced right are attracting a lot of attention and are selling.’
The national median number of days to sell stayed at 45 for July which is longer than the 37 days of July 2009 but an improvement on the median of 58 days in July 2008.
Winter is traditionally a slow period for the property market, and Mr Thompson says agents are aware of many home owners preparing their properties for marketing in the Spring so an uplift in sales volumes can be expected.
The total value of residential sales, including sections, in July declined to $1.83 billion, a further decrease on the June total of $1.96 billion. The breakdown of the values of the properties sold is 134 for $1 million plus, 462 for $600,000 - $999,999, 1,084 for $400,000 - $599,999 and 2,731 under $400,000.
Changes in the median price varied from district to district across the country with falls as high as 5 per cent in five regions, and increases of up to 11 per cent in the other seven when compared with the same month last year. The largest rise in the median price is in Southland which is up more than 10.5 per cent on the previous year and the largest fall in Central Otago Lakes down 4.9 per cent. | 
