Residential Property Stabilises

17 August, 2001

Upward Trend In Residential Property Market Continues

Residential property statistics for July 2001, released today by the Real Estate Institute of New Zealand, show the national sales volume has risen significantly from July 2000, while easing on June 2001 and the national median sales price has eased from last month but remained consistent with July 2000.

The national median sales price fell $7,000 to $170,000 in July, compared to the $177,000 recorded in June. Property values were stable on a year to year basis, with $170,000 also recorded in July 2000, according to Rex Hadley, National President of the Institute.

Mr Hadley said, "During 2001, the national median price has moved up and down each month by up to eight thousand dollars, but appears to be achieving a stability within this range. In addition the statistics for the total value of sales nationwide illustrates a very positive property market with a confident home buying public who are backed by a stable mortgage interest rate environment that is expected to continue into early 2002.”

According to Mr Hadley, the total value of sales nationwide in July 2001 of $1.25 billion, compared to $1.3 billion in June and 1.06 billion in July 2000 reflects the stability of the 2001 market and the ongoing improvement in the residential property market from 2000.

He said, “The total expenditure in the property market is markedly improved from 2000, and the 954 additional transactions between July 2000 and 2001 has seen the total value of sales increase by $190 million.”

The national sales volume for July 2001 was 6,122, easing slightly from the 6,147 sales in June but well improved from the 5,168 homes changing hands in July 2000.

On a year-to-year basis, the median sale price rose for ten of the eleven regions, those being; Northland, Auckland, Hawkes Bay, Wellington, Nelson/Marlborough, Waikato/BOP/Gisborne, Manawatu/Wanganui, Canterbury/Westland, Taranaki, Southland and Otago. The only region easing on year-to-year comparison was Wellington, from 791 sales in July 2000 to 777 in the latest period.

On month-to-month comparison, the median sale price rose for seven of the eleven regions, those being; Northland, Waikato/BOP/Gisborne, Manawatu/Wanganui, Nelson/Marlborough, Canterbury/Westland, Taranaki and Southland. The median sale price for three of the eleven regions fell on a month-to-month basis, namely; Auckland, Hawkes Bay, Otago and Wellington.

Section activity and median section price eased with 509 sections changing hands at a median price of $80,000, compared to 521 sold during June at the median price of $85,000.

-ENDS-

Regional highlights:

NORTHLAND

A total of 192 homes changed hands in Northland, compared to 172 in June. The median price for the area was $160,000, up from both the $158,000 recorded in the previous month and the $130,000 for July last year, when 132 homes were sold.

AUCKLAND

In Auckland, 2,004 home settlements were recorded during July, down on the 2,077 recorded in June and up on the 1,711 homes that changed hands in July 2000. The median price for the region was $239,000 July compared to $253,000 for June, and the $231,000 recorded for July 2000.

On the North Shore, the median price fell to $266,250 for July from the $272,500 for June and rose on the $266,00 recorded in July 2000. Home sales rose from the 336 in July 2000 but fell on the 436 sales in June to 348 in July 2001.

A total of 231 homes were sold in Waitakere City, up from the 228 recorded last month and the 224 sales recorded last July. The median price was $192,000, down on both the $204,000 recorded in June and the $195,000 for July 2000.

In Auckland City 716 homes changed hands, up from the 707 sales recorded in June and the 579 sales recorded in July 2000. The median price of $258,000 was down on both the $290,000 recorded for June and the $272,000 recorded twelve months ago.

Home sales rose and the median sale price fell in Manukau City, with 424 homes changing hands at a median price of $241,750. This compared with 421 sales and a median price of $250,000 in June and 345 sales recorded last July at a median price of $220,000.

In the Papakura district, 46 homes changed hands, compared to 44 in June and 47 in the same month last year. The median price of $176,500 was down on the $187,000 recorded in both June 2001and July 2000.

A total of 1,765 home settlements were recorded in Metropolitan Auckland, down from the 1,836 in June and up on the 1,531 recorded for the same month last year. The median price of $244,000 was down on the $261,500 recorded for June 2001 and up on the $233,892 recorded for July 2000.

WAIKATO/BAY OF PLENTY/GISBORNE

Sales rose in the Waikato/Bay of Plenty/Gisborne region with 897 homes changing hands, compared to 858 in June. The median price was $162,000, compared with $157,500 in June and $155,000 in July 2000 when 717 homes changed hands.

HAWKE’S BAY

The sales volume fell and median price rose in July with a total of 170 homes changing hands at a median price of $135,000, compared to $126,000 and 206 sales in June. This compared to 160 sales and a median price of $116,000 a year ago.

MANAWATU/WANGANUI

The sales volume in the region rose on a year to year basis and month to month comparison with 375 home settlements recorded in July compared to 314 in June and 329 in July last year. The median price of $105,000 was up on the $101,500 of the previous month and less than the $110,000 recorded in July 2000.

TARANAKI

Sales volume rose on a month to month basis with 144 homes changing hands compared to 135 in June. The median price rose to $96,750 for July compared to $92,000 for June. The median sales price for July 2000 was $96,000 when 134 homes were sold.

WELLINGTON

The median price in the Wellington region fell to $190,000 from the $195,000 recorded in June 2001 while rising on the $183,000 in July 2000. The sales volume fell on both the previous month and on year to year comparison, from 910 recorded sales in June to 777 homes in July 2001, and compared to 791 sales in the same month last year.

NELSON/MARLBOROUGH

Sales volumes rose in July with 264 homes sold in the Nelson/Marlborough area, compared to 261 sales in June. The median price of $145,000 was down on the $154,000 recorded in June, and also eased on the $147,000 recorded last July when 174 homes were sold.

CANTERBURY/WESTLAND

The median price fell in the Canterbury region at $136,000 for July compared to $140,000 in both June 2001 and July 2000. A total of 812 home settlements were recorded, up on the 724 recorded in June and the 651 sales recorded in July last year.

OTAGO

Sales volume and median price fell in Otago on a month to month basis with 258 homes sold during July, at a median price of $94,500 compared to 277 sales and a median of $100,000 in June. In July last year 236 sales were recorded at a median price of $94,500.

SOUTHLAND

The median price rose in the Southland region from $65,000 in June to $84,000 in July. Sales volumes rose, with 229 homes changing hands, compared to June when 213 homes were sold. This compared to a median of $72,500 last July when 133 homes changed hands.

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