12 October 2011 - Provided by Real Estate Institute of New Zealand Inc
Real Estate Institute of New Zealand (REINZ) data on the New Zealand housing market for September 2011 showed 5,235 unconditional sales for the month, up 912 sales (+21.1%) compared to September last year. The national volume of sales for September 2011 was just 43 higher than the August 2011 figure, a modest result given the lift usually expected during spring. When adjusted for the seasonal pattern expected at this time of year the volumes are approximately 2.3% weaker. The national median house price eased by $5,000 to $350,000 (-1.4%) in September compared to August and is flat compared with September 2010.
While the national total showed an increase, regional markets showed considerable variability. Northland recorded the strongest rise in volumes compared to August (+30.0%). Otago had the next strongest rise, (+12.7%), followed by Manawatu/Wanganui (+12.4%). Wellington recorded the largest drop in sales (-9.3%), followed by Taranaki (-7.9%) and Waikato/Bay of Plenty (-6.5%). Volumes in the Auckland market were just a 1.5% increase over August, which is relatively flat given the seasonal lift usually apparent at this time of year.
Hawkes Bay recorded the strongest lift in prices for the month of September (+8.3%), followed by Auckland (+4.9%), Wellington (+4.1%) and Nelson/Marlborough (+1.9%). Compared to September 2010, Auckland recorded the strongest lift in prices (+5.6%), followed by Canterbury/Westland (+4.7%) and Hawkes Bay (+2.2%).
“The volume data indicates that the New Zealand real estate market is in better shape when compared with this time last year with volumes up over 20% compared to September last year and a continued reduction in the number of days to sell. That improvement is flattening out with a weaker than usual seasonal lift from August volumes. There is clear evidence from across the country that buyers are very focused on value and are well informed about what they can afford and are prepared to pay,” said REINZ Chief Executive Helen O’Sullivan. “We’re seeing is a very interesting market with listings improving though still reported as tight, plenty of buyer interest but only on a very rational basis – there is no appetite on the part of buyers to overpay or rush to purchase.”
The national median ‘days to sell’ (measuring the number of days from listing date to unconditional date) improved by 2 days from 39 days in August to 37 days in September. The days to sell were at 43 in September 2010. This is the shortest number of days to sell since March 2010, and continues the trend evident over the winter of a shortening in the number of days to sell.
Auckland again recorded the shortest days to sell at 32 days (-1 day), followed by Otago and Southland at 36 days (-10 days and -1 day, respectively), with Wellington and Canterbury/Westland next with 38 days (-6 days and +3 days, respectively). Taranaki and Central Otago Lakes both recorded the longest number of days to sell at 79 days (+4 days and +12 days, respectively), followed by Northland at 56 days (-11 days). Over the past five years the median days to sell has averaged 41 days across New Zealand.
“We are continuing to see the national median house price move in a range between $345,000 and $365,000 as it has done for about the last two years, with no strong driver for change in either direction ”, said O’Sullivan.
For the full report from REINZ please select here: 12 October 2011, (.pdf Format; 207Kb)
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