Rising Sales Volumes Key Feature of August Market

News Release
13 September 2011

Rising Sales Volumes Key Feature of August Real Estate Market

Real Estate Institute of New Zealand (REINZ) data on the New Zealand housing market for August 2011 showed 5,192 unconditional sales for the month, up 905 sales (+21.1%) compared to August last year. The volume of sales for August 2011 was 264 sales higher than the July 2011 figures; a slightly stronger lift than the seasonal pattern expected at this time of year. The national median house price rose by $10,000 to $355,000 (+2.9%) in August compared to July 2011 and just a $5,000 (+1.4%) increase compared with August 2010.

Waikato/Bay of Plenty recorded the strongest rise in volumes compared to August 2010 with an increase of 33.2%. Nelson/Marlborough had the next strongest rise, up 29.0%, followed by Auckland, up 27.4% and Northland, up 25.0%. Only one region, Taranaki, saw a drop in sales volume compared to August last year.

Nationally prices were relatively steady. Northland recorded the strongest lift in prices for the month of August (+11.8%), followed by Southland (+7.0%), Central Otago Lakes (+6.1%) and Otago (+5.6%). Compared to August 2010, Otago recorded the strongest lift in prices (+4.9%), followed by Canterbury/Westland (+3.2%) and Auckland and Southland (both +1.8%).

“The tight supply of listings across the country is the key feature of the market currently. With the arrival of spring listings are showing signs of increase, but the impact of the Rugby World Cup and the General Election soon after makes it difficult to predict how the market will respond,” said REINZ Chief Executive Helen O’Sullivan. “The improvement in volumes over the past few months is a positive sign, however prices remain essentially steady. One interesting aspect of the market is how well informed buyers appear to be and how focused they are on buying at what they see as their level.”

The national median ‘days to sell’ (measuring the number of days from listing date to unconditional date) improved by 3 days from 42 days in July to 39 days in August. The days to sell were at 43 in August 2010. Auckland recorded the shortest days to sell at 33 days, followed by Canterbury/Westland at 35 days and Southland at 37 days. Taranaki recorded the longest number of days to sell at 75 days, with Northland and Central Otago Lakes next longest at 67 days. Over the past five years the median days to sell has averaged 41 days across New Zealand.

“The real estate market appears to be fairly well balanced at present”, said O’Sullivan. “Volumes are rising, listings are short and the days to sell measure is gently declining. The one piece that isn’t showing any discernable trend is prices, which continue to move sideways.”

Further Data

Across New Zealand the total value of residential sales, including sections was $2.18 billion in August 2011, compared to $2.08 billion in July 2011 and $1.74 billion in August 2010.

The breakdown of the value of properties sold in August 2011 is:

$1 million plus 127 2.4%
$600,000 to$999,999 625 12.0%
$400,000 to $599,999 1,310 25.2%
Under $400,000 3,130 60.3%
All Properties Sold 5,192 100.0%

The REINZ Housing Price Index rose 0.5% in August compared with July, with the stratified median house price just over $363,000. The REINZ Housing Price Index recorded increases in Auckland, Wellington, and Other North Island, and falls in Christchurch and Other South Island. Compared to August 2010 the REINZ Housing Price Index rose 0.7%, and the Index is now 4.7% below the peak recorded in November 2007 (see table and chart below).

REINZ Stratified Median Housing Price Index Chart

REINZ Stratified Median Housing Price Index Statistics

* CAGR is Compound Annual Growth Rate

ENDS

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