Property sales strong
The Chief Executive of the Real Estate Institute of New Zealand (REINZ), Helen O’Sullivan, says April was notable for the surge in prices and sales of mid-level homes in many parts of the country which was reflected in a new high for the REINZ Stratified Price Index and records for the index in Wellington and Other South Island districts. "Several regions appear to be benefiting from the tail-wind generated by the strength of house prices in Auckland and Christchurch."
Overall price levels in Auckland and Canterbury are continuing to have a major impact on the national picture, with Auckland recording the second largest increase in median price compared with April last year, and Canterbury the third largest increase in median price. Together, Auckland and Canterbury accounted for 92% of the increase in the national median price over the past 12 months.
"Auckland and Canterbury remain the two regions driving the national median price, a point recognised by the Reserve Bank in its recent monetary policy statement. We also note that the remaining 10 regions accounted for only 8% of the increase in the national median, with four of those regions recording falls."
REINZ data shows there were 7,104 unconditional residential sales in April, an increase of 1,428 sales (+25.2%) compared with the same time last year and a fall of 12.6% compared to March 2013. The increase over March on a seasonally adjusted basis was 0.8%, indicating that sales were slightly stronger than what would normally be expected for this time of the year.
All but one region recorded increases in sales volume compared to April last year, with Manawatu/Wanganui recording an increase of 36.5%, followed by Taranaki with 36.2% and Nelson/Marlborough with 34.2%. Four regions recorded an increase in sales volume in April compared to March, with Central Otago Lakes recording an increase of 11.3%, followed by Manawatu/Wanganui with 2.0% and Southland with an increase of 0.7%.
The national median house price fell by $9,500 (-2.4%), from $400,000 in March, to $390,500 in April, following a new record last month. Compared to April 2012 the national median house price increased by $25,500 (+7.0%), with four of the 12 regions recording a drop in the median price. Compared to April 2012 Taranaki recorded the largest increase in median price, up 15.9%, followed by Auckland with 13.3%, and Canterbury/Westland with 10.0%. Central Otago Lakes recorded the largest fall, down 10.1%, followed by Hawkes Bay, down 6.4% and Nelson/Marlborough, down 2.2%.
The REINZ Stratified Housing Price Index, which adjusts for some of the variations in mix that can impact on the median price, is 9.8% higher than April 2012 and increased 0.8% compared to March. The Auckland Stratified Housing Price Index is up 14.1% compared to April 2012, while the Christchurch Stratified Housing Price Index is up 12.7%. The Wellington Stratified Housing Price Index hit a new record high in April, as did the Other South Island Stratified Housing Price Index
Houses took three days longer to sell in April, compared to March, easing from 31 days in March to 34 days in April. Compared to April 2012, the number of days to sell improved by three days. Eight regions saw an improvement in the number of days to sell between April 2012 and April 2013, with Nelson/Marlborough recording the largest improvement of eight days.
For the month of April, Canterbury/Westland recorded the shortest days to sell at 27 days, followed by Auckland at 30 days, and Wellington and Nelson/Marlborough at 35 days. Central Otago Lakes recorded the longest number of days to sell at 57 days, followed by Northland with 56 days and Manawatu/Wanganui with 49 days. Over the past 10 years the median days to sell for the month of April has averaged 36 days across New Zealand.
Nationally there were 1,368 dwellings sold by auction in April representing 19.3% of all sales - the third highest number of auction sales in a month and an 85.1% increase on the number of dwellings sold by auction in April 2012. Auctions are progressively becoming the favoured sales method in certain centres; for the 12 months to April 2013 the total number of sales by auction reached 13,995 or 18.0% of all sales, compared to 8,108 or 12.3% of all sales for the 12 months to April 2012.
Transactions in Auckland again dominated the auction market in March, representing 76.4% of the national total of auction sales. 37.2% of all dwelling sales in Auckland were by auction in April; this was up strongly from the 23.9% of sales by auction in April 2012. Sales by auction in Waikato/Bay Of Plenty accounted for 7.2% of the national total, Canterbury/Westland accounted for 9.0% of the national total, and all other regions combined accounted for the remaining 7.5% of auction sales in April 2013.
Across New Zealand the total value of residential sales, including sections was $3.50 billion in April, compared to $4.11 billion in March, and $2.57 billion in April 2012. For the 12 months ended April 2013 the total value of residential sales was $36.63 billion. comments powered by Disqus