Stout property market performance for July

Residential property market puts up stout performance for July

The residential real estate market put in a remarkably stout performance for July, with a gain in the national median price on the back of strong sales volumes, and the Auckland market continuing to show resilience, according the National President of the Real Estate Institute of New Zealand, Mr. Graeme Woodley.

“The July figures show the market is unusually strong for what is traditionally the quieter winter period with a climb in sales volume to 10,138 sales, compared with 9,790 in June and the July 2002 corresponding figure of 7,795 sales.

“These strong volumes tend to underwrite the national median sales price growth and tell us that the overall market is growing as a result of strong recent immigration and new dwelling construction. Clearly there is still a gap between demand and supply which goes back to economic and population growth.”

The national median price increased from the June figure of $210,000 to $211,250 for July, compared with the July 2002 figure of $185,000, which was a 14.2 per cent increase, year on year.

Notable among the month by month figures was Auckland up from $289,000 in June to $298,000 again defying predictions, Wellington was up from $220,500 in June to $237,000 in July, Christchurch City was up from $181,750 to $184,750 and Dunedin was up from $124,000 to $134,000, month on month.

Mr. Woodley said that the figures for the July year on year comparisons were interesting and showed Dunedin leading the percentage price growth, followed by Christchurch and Wellington.

The Dunedin City median sales price grew 26.4 per cent year on year from $106,000 to $134,000, from July 2002 to July 2003, Christchurch City was up 21.5 per cent, from $152,000 to $184,750 and Wellington was up from $205,000 to $237,000, a 15.6 per cent increase.

Other year by year increases included Auckland, up 15.1 per cent from $259,000 to $298,000, Hawkes Bay up 14.5 per cent from $138,000 to $158,000 and Canterbury/Westland up 17 per cent from $141,000 to $165,000.

Mr. Woodley said the growth in sales volumes and median sales prices in southern areas was notable and reflected the buoyant provincial economies, while in Auckland, growth was being driven not only by economic factors but also by population and immigration movements.

Metropolitan Auckland sales in July, for example, held up at 3,054 sales, slightly down on the June figure of 3,119, but well up on the July 2002 volume of 2,528.

“Auckland continues to be something of a barometer of the economy and there are certainly pockets within the overall Auckland figures which indicate the growth in values and volumes is unabated.”

Mr. Woodley pointed to the Auckland City median sales price rising from $355,000 in June to $382,750 in July, compared with the July 2002 median of $285,000, an increase year on year of 34.3 per cent.

Other areas of Auckland also showed strong growth with the Metropolitan Auckland median sales price up from $300,000 in June to $311,500, compared with $263,900 in July 2002.

North Shore showed similar growth, up from $339,000 in June to $345,000 in July, compared with the 2002 figure of $295,000.

“We continue to have a low interest rate environment and although there are signs that rates could begin to firm, this is giving homeowners the confidence to buy, knowing that residential property continues to offer a very competitive form of personal saving,” Mr. Woodley said.

-ENDS- Issued on behalf of the Real Estate Institute of New Zealand (Inc) by Sorensen Group. For further information contact:
Graeme Woodley, National President The Real Estate Institute of New Zealand Inc (021) 369 270 (03) 377 0698
OR
Klaus Sorensen (029) 232 2576 (09) 307 4670

Real estate information is also available via the Institute's official property directory - RealENZ - on the Internet. RealENZ is a search facility providing comprehensive information on residential, lifestyle, rural, commercial, investment and rental properties. RealENZ's Internet address is: www.realenz.co.nz

REINZ Market Report Regional Highlights: Northland: House prices for the Northland region steadily climbed to $175,000 for the month, a significant increase when compared to last month’s $168,000 median and last year’s $141,500 result. Volume of sales for the area also continued an upward growth pattern totalling 325 for July, in comparison to the prior month’s 294 sales and the previous year’s 222 result.

Sixty-two sections changed hands for a median sales price of $85,000, a slight increase on the 58 sections sold in June.

Auckland: Auckland’s median price for the July period of $298,000 surpassed the prior month’s $289,000 median and was also a marked improvement when compared to last year’s $259,000 median price. However the number of houses sold declined from the 3,579 sales in June to 3,570 sales for the month, though this was a positive movement on the previous year’s 2,867 sales.

The number of sections sold for the month of July reached 275 at a median price of $142,000 - a healthy gain compared to last month’s 197 sections that changed hands at a median $145,000.

Volume of sales for the North Shore fell to 598 for the month, a noticeable drop compared to the 733 sold, but demonstrated positive growth against July 2002’s 511 sales. Meanwhile the median price for the area continued to strengthen, reaching $345,000, up on June’s $339,000 median and the prior month’s median price of $295,000.

Waitakere’s median price exhibited a positive trend to reach $251,000 for the month, a significant increase on last month’s median of $239,900 and last year’s $215,000 median price. Volume of sales peaked to 557, a favourable figure in comparison to last July’s 333 sales and the 538 sales achieved the prior month.

The median housing price for Auckland City remained strong at $382,750 against the previous month’s $355,000 median and the $285,000 median achieved in July 2002. Sales volume for the July period steadily grew to total 1,100 sales, up on the 1,092 sales achieved in June 2003 and the 1,001 sales reached last year.

The number of houses sold in Manukau City rose to a new high of 689 sales for the July period, a steady increase on the 600 reached last July and the 669 achieved for June 2003. Meanwhile the median price crept to $291,000, an improvement on June 2003’s $290,000 median price and well up in regards to the $250,250 median recorded the prior year.

Papakura’s median price soared to $216,250 for July, ahead of last month’s median price of $200,000 and to the previous year’s $169,000 median. Volume of sales were also bolstered, totalling 110 for the period to surpass June’s 87 sales and the 83 sales achieved in July 2002.

The number of houses sold in Metropolitan Auckland eased to 3,054 for the month, a decline in comparison to the 3,119 sales achieved last month, but was a marked improvement on the prior year’s 2,528 sales. The median price for the area gained ground to reach $311,500 for the July period, ahead of both last year’s $263,900 median and the $300,000 median achieved in June 2003.

Waikato / Bay of Plenty / Gisborne: Waikato / Bay of Plenty / Gisborne’s median sales price increased $1,000 to $177,000 compared to last month’s $176,000 and was a noticeable upward movement on last year’s $167,000 median. Volume of sales for the month peaked to 1,672, a significant increase compared to the prior year’s 1,189 sales achieved and a steady incline from last month’s 1,558 sales.

One hundred and sixty sections changed hands during the month long period at a median price of $74,500, a marked decline on the prior month’s results where179 sections sold at a median price of $78,000.

Hawkes Bay: Hawkes Bay’s median price for the month at $158,000 was well ahead of the previous month’s median at $150,000 and July 2002’s $138,000 median price. Meanwhile sales for the area gained strength against prior results to reach 341 for the month, up on last year’s 237 sales and the 327 achieved in June.

A total of forty sections were sold during the month of July at a median price of $107,750, in comparison to the 42 sections that changed hands at a median price of $74,750 in June 2003. Manawatu / Wanganui: Sales volume for Manawatu / Wanganui increased by five during the month to reach 505 houses, as compared to June’s 500 sales, and soared in comparison to the 320 sales achieved in July 2002. The median sales price for the July period steadily increased to $111,000, ahead of last month’s median of $107,750 and the prior year’s $99,000 median price. Twenty-eight sections changed hands in July, reaching a median price of $57,750, which was a favourable increase compared to the twenty-nine sections sold last month at a median $53,500. Taranaki: The number of houses sold in Taranaki during the month fell slightly to 231, down two on the previous month’s 233 sales, but July’s sales were a marked improvement compared to last year when 204 houses were sold. The median sales price of $130,000 for the month kept pace with June’s $125,000 median and remained well ahead of the $111,000 median price achieved in July 2002. A total of 17 sections were sold in July at a median price of $60,000, a comparative fall in regard to the prior month’s 24 sections that changed hands at a median $73,500. Wellington: The capital city’s sales reached the thousand mark, levelling to 1,078 for the month, a significant advance on the prior July’s 846 sales and the 938 sales achieved in June. Meanwhile the median sales price for the area soared to $237,000, a remarkable improvement from the $205,000 median gained in July 2002 and the $220,500 median recorded in June. The median price in the Hutt Valley dipped to $194,000, down $2,000 on last month’s $196,000, but showed strength when compared to July 2002’s median price at $185,000. The number of houses sold during the month also decreased to 212 in relation to the prior month’s total of 214 sales, but again proved favourable to the 170 sales recorded the prior year. Northern Wellington’s median price of $264,000 was a significant decrease on June’s $288,750 median, but kept pace with the prior year’s $253,000 median. Sales for the month increased slightly from the 96 sales recorded the same month last year and the 94 reached last month to reach 97 sales. The volume of sales in Western Wellington steadied at 58, a positive movement compared to the previous month’s 46 sales and the prior year when 51 houses were sold. At $334,100, the median price continued its upward growth against last year’s median of $292,600, but diminished on a monthly basis with June 2003’s recorded median price of $386,350. The number of houses sold in Southern Wellington peaked at 108 sales, a significant increase compared to last month’s 37 sales and last year’s 54. The median price for the July period improved to $308,000 compared to July 2002’s $265,000 median, however it was a noticeable decrease on the $331,000 median attained last month. Sales for Eastern Wellington continued to steadily grow reaching 55 for the month, up from both last month’s 44 and last year’s 43 sales. The median price for the area at $325,000 showed strength compared to the prior year’s $287,000 median, while considerably decreasing against June’s median price of $340,500. Central Wellington’s median sales price soared to $304,200 for July 2003, well ahead of both the prior month’s and year’s median (June: $283,500; July 2002: $295,000). Sales for the region exhibited a positive trend, increasing to 97 from the previous month’s 67 and the prior year’s 69 sales.

Nelson / Marlborough: Nelson / Marlborough’s median house price dropped to $212,500, a noticeable fall compared to last month’s $219,000, but remained firm on the prior year’s median price of $156,000. The number of houses sold levelled off at 297, a decline on both a month-by-month and year-by-year basis (June: 326; July 2002: 319). The median price for Motueka eased from the prior month’s median at $238,500 to $205,000 for July, but increased significantly in comparison to the July 2002 median price (July 2002: $130,000). Volume of sales kept pace with prior results in which 33 houses sold during July, as opposed to the 32 sales recorded last year and the 28 sold last month. The Marlborough Sounds median sales price peaked on both a monthly and yearly basis to $371,000 for July, a noticeable improvement on the prior year’s $191,000 median and a slight increase when compared to June’s $365,000 median. Meanwhile the number of houses sold fell on both a monthly and yearly basis to three, down on last month’s nine sales and the previous year’s four. Marlborough / Kaikoura’s volume of sales levelled to 112 during the July period, a decline compared to June’s 119 sales and July 2002’s 107 houses sold. The median price for the area increased on a yearly basis to reach $180,000, up from last year’s $129,000, but dropped $5,000 in comparison to the prior month’s median of $185,000. Canterbury / Westland: Volume of sales in Canterbury / Westland reached a new high, with 1,348 sales during the month, an improvement on last month’s 1,285 sales and last year’s 1,003 sales. The median price continued its upward growth pattern to $165,000, a significant advance on both the prior month’s median of $159,500 and the prior year’s $141,000 median. Christchurch City’s total sales increased to 870, a significant improvement on the 778 recorded for June and the 687 achieved in July 2002. The median price at $184,750 strengthened on both a monthly and yearly basis, ahead of the $181,750 median price gained the prior month and last July’s $152,000 median price. City Central sales continued its upward growth to reach 44 during the month, a vast improvement on the prior month’s 30 sales and the 22 houses sold in July 2002. At $183,500, the median price for July decreased when compared to the prior month’s median price of $214,000, but strengthened against last July’s $167,750 median. The median price for the North East Christchurch suburbs eased from $175,000 median achieved in June to $174,500 for July, while the median price for July 2002 had decreased to $156,250. Sales for the region declined on a monthly basis from 81 sales achieved last month to 68 sales during July, however, compared to last year’s 50 sales the volume sold for the month showed strength. Riccarton and Upper Riccarton’s median house price at $202,500 for July surpassed both last year’s and last month’s median (June: $167,500; July 2002: $156,650). Meanwhile sales dipped to 42 during the month, a slight downward movement on the prior year’s 44 sales achieved, but a significant increase compared to the 27 sales recorded in June. The volume of sales for the North Western Inner suburbs of Fendalton/Ilam and Merivale steadily increased to 75, a marked improvement on the prior month’s 67 sales and the previous year’s 55. The median price slowed to $310,000 for the month, down compared to June’s $315,000 median, but continued to grow against July 2002’s $252,000 median price. Otago: At $132,750 the median price for Otago demonstrated strong upward growth, gaining on June’s $124,000 median and the median price of $106,750 recorded last July. Sales also climbed seven to 460, ahead of the 453 achieved the previous month, as well as rising above the 320 sales attained in June 2002. Dunedin City’s sales exhibited a positive trend with 315 achieved during the month, a slight gain on the prior month’s 311 sales and last year’s 209 sales. The median price also continued to grow on both a monthly and yearly basis to $134,000, a $10,000 increase on June’s $124,000 median, while remaining well up on the previous year’s median price of $106,000. Volume of sales for Central Otago eased on a monthly and yearly basis to 51 for July, a slight decrease on the prior month’s 56 sales and the 54 sales achieved in July 2002. Meanwhile the median price of $206,000 significantly increased against last year’s $164,000, but had dropped considerably against the previous month’s $212,500 median price. North Otago’s housing market soared, with both the number of houses sold at 59 and the median price reaching a new high of $94,000 for the month. In contrast, 57 sales at a median of $87,000 were recorded in June and in July 2002 43 sales lead to a median price of $65,000. Sales in South Otago rocketed to 27 during the month, a significant increase on the prior month’s 17 sales and the two achieved last year. However the median price fell from $83,500 to $61,000 over the month long period. In contrast, this remained a noticeable improvement compared to July 2002’s $17,500 median price. East Otago’s median price for the month peaked to $85,500, an improvement on both the previous month’s and year’s turnover (June: $60,750; July 2002: $56,500). The number of houses sold for the region dipped to eight, a drop from the 12 achieved in June and July 2002. Southland: Southland’s sales for the month kept pace at 311 with the number of houses sold last month and last year (June: 297; July 2002: 268). However the median price eased to $98,000 in July, a drop of $10,000 on the prior month’s $108,000 median, while remaining ahead of the $76,000 median price recorded in July 2002.

Thirty sections changed hands during the month for a median price of $141,000, a positive movement compared to last month’s 27 sections sold at a median of $128,000.

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