No Spring Surge In Residential Property Sales

NO SPRING SURGE IN RESIDENTIAL PROPERTY SALES

There has been no traditional springtime rise in residential property sales so far this year but the national median price is holding firm at $350,000, according to figures released today by the Real Estate Institute of New Zealand (REINZ).

Across the country residential property sales fell to 3,903 in October from 4,323 sold in September 2010 and 4,287 in August 2010. It is the first time residential property transactions have dipped below 4000 in October for more than a decade, or since the record low of 3,666 sales set in January 2010.

“The usual spring influx of listings has been late this year but activity is picking up now and the November figures should be better,” says REINZ spokesman Peter Thompson. ”People planning to change houses appear to have held back on listing their current homes until they see what else is available and how the market is moving.”

“Though volumes are down overall prices are remaining stable,” says Mr Thompson. The national median price stayed steady at $350,000, the same as September and August but is 1.4 per cent down on the October 2009 median of $355,000

“Despite the present economic conditions, both prices and the level of activity in the real estate market are healthier now than they were in October 2008 when the median price fell back to $335,000 and the days to sell were 47 compared with 41 in October this year,” says Mr Thompson.

The national median number of days to sell shortened to 41 in October from 43 in September and August but it is still 10 days longer than the 31 days recorded in October 2009.

Though the city is still shaking intermittently the Christchurch median price stayed steady at $338,000 for a second month and is up on the $330,000 in October 2009. Despite reported problems with arranging finance and insurance as a result of the earthquakes, residential property sales in Christchurch increased from 237 in September to 343 in October.

“While some of those sales may have been delayed transactions it is good to see activity picking up again in such a badly affected area,” say Mr Thompson.
Nationally the total value of residential sales in October, including sections, decreased to $1.67 billion. The breakdown of the values of the properties sold is 119 for $1 million plus, 451 between $600,000 and $999,999, 990 between $400,000 and $599,999 and 2,343 for under $400,000.

From district to district, changes in the median prices over the past year varied from increases of up to 5.7 per cent in seven regions to falls of up to 6 per cent in four regions, with a drop of 20 per cent in Central Otago Lakes.

ENDS

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