11 February 2011

Activity remained muted in the residential property market in January and the number of sales fell below the record low set in January of last year, in the latest statistics released today by the Real Estate Institute of New Zealand (REINZ).

“The traditionally subdued month of January was marked by the lowest ever level of new listings coming to market and turnover fell to a new low below that of January 2010,” says REINZ Chief Executive Helen O’Sullivan. “This reflects that with rental shortages in key urban areas such as Auckland and relatively low interest rates, home owners and investors alike are under no pressure to sell.”

“Good income prospects bode well for better returns on rental investments,” Helen O’Sullivan says, “But low levels of building consents don’t suggest any significant increase in new housing stock in the short term. This in turn should provide support for prices over the coming 12 months, and perhaps an opportunity for would-be investors”.

The most up to the minute statistics on movements in property prices across New Zealand, the REINZ report on sales in January shows the national median price is 2.9% down on a year ago, but still 4.6% above the 2009 figure. From $352,000 in December 2010 the national median decreased to $340,000 in January and is $10,000 below the January 2010 median of $350,000 but higher than the January 2009 median of $325,000.

From 4,397 in December 2010, the number of residential property sales declined to 3,252 in January, below the previous low of 3,666 sales recorded in January 2010.

Nationally the total value of residential sales, including sections, fell to $1.3 Billion in January from $1.9 Billion in December. The breakdown of the values of the properties sold is 73 for $1 million plus, 365 between $600,000 and $999,999, 786 between $400,000 and $599,999 and 2,028 for under $400,000.

In Northland the median price increased 2.27 per cent on the same month in 2010 and in the Auckland District is just $500 lower, or less than 1 per cent down on twelve months ago. In all other districts it decreased between 1 per cent in Southland and 17 per cent in Otago on the same month in 2010, and sales are also down in all districts when compared to January 2010.

From 39 in December, the national median for days to sell rose to 51 in January, 8 more days than in January 2010. Sales were fastest in Auckland at 41 median days and slowest in Northland where the median days to sell was 96.

ENDS

© Scoop Media