July Real Estate Market Takes Mid-Winter Breather

News Release 11 August 2011

July Real Estate Market Takes Mid-Winter Breather

Real Estate Institute of New Zealand (REINZ) data on the New Zealand housing market for July 2011 showed 4,928 unconditional sales for the month, up by 517 sales on July last year. The volume of sales for July 2011 was 301 sales lower than the June 2011 figures; a slightly larger decline than the seasonal pattern expected for this time of year. The national median house price fell by $15,000 to $345,000 (-4.2%), continuing the trend of moving between $340,000 and $365,000 each month evident since June 2009.

Hawkes Bay recorded the strongest lift in prices for the month of July (+8.3%), followed by Canterbury/Westland (+5.0%) and Taranaki (+2.0%). Compared to July 2010, Central Otago Lakes recorded the strongest lift in prices (+4.9%), followed by Hawkes Bay (+3.8%) and Auckland (+3.3%).

The headline drop in the number of sales masks some sizeable changes at the regional level for the month of July. Canterbury/Westland recorded an increase of one quarter, reflecting the increased certainty for homeowners in the region following the Government’s announcements at the end of June, while Hawkes Bay also recorded an 18.8% increase in sales. In contrast Taranaki recorded a drop of 23.1% and Auckland a drop of 14.2% for the month of July. Compared to July 2010 sales volumes increased in all but two regions, with eight regions reporting double digit increases in the number of properties sold.

“The July results continue the trend of prices moving sideways with volumes on an annual basis continuing to recover. The drop in volumes and the median price in July is not unexpected and reflects the fact that we are in the middle of winter”, said REINZ Spokesperson Philip Searle. “The lack of listings and vendors in the market is continuing to be an issue for agents with more and more regions reporting shortages of new stock and a lack of choice for buyers.”

“Despite these challenges, many regions report good attendances at open homes and active buyer interest, although concerns about the economy and volatility in financial markets may be holding some buyers back at present”, said Philip Searle.

The national median ‘days to sell’ (measuring the number of days from listing date to unconditional date) improved by 2 days from 44 days in June to 42 days in July. The days to sell were at 45 in July 2010. Auckland recorded the shortest days to sell at 34 days, followed by Canterbury/Westland at 37 days and Wellington at 45 days. Central Otago Lakes recorded the longest number of days to sell at 108 days, with Northland next longest at 77 days. Over the past five years the median days to sell has averaged 41 days across New Zealand.

ENDS

Full release: REINZ_Residential_Press_Release_July_2011.doc
Statistics: REINZ_Residential_Market_Statistics__July_2011.pdf

© Scoop Media