Don

Residental Market News

RESIDENTIAL PROPERTY MARKET MEDIAN EASES

16 Sep 2004

The New Zealand residential property market median selling price eased slightly during August, due largely to increased demand for less expensive properties coupled with a slower level of activity in upper end properties, according to the National President of the Real Estate Institute of New Zealand (Inc), Mr Howard Morley.

However sales volumes improved as the market moved into its customary spring upturn in activity, the Institute reported.

The national median selling price fell slightly from $249,000 in July 2004 to $247,000 in the latest month, compared with the June median of $243,000.

According to Mr Morley, “while the market appears to have retreated, it has to be considered that July saw a strong increase in the median especially because of a big jump in Auckland median prices. This month we have seen a bit of levelling off, but the trend is still pretty much intact.�

Recent interest rate increases arising from the Reserve Bank's tightening of the Official Cash Rate may have had some effect, “but with an increasing number of people moving to fixed rates, especially earlier this year when rates began their increase, the potential for OCR increases to affect the confidence of the house-buying public is increasingly limited.�

Of the 11 regions, seven reported increases (five last month) two recorded falls (five in July) and two were unchanged (one in July).

The impact of the Auckland market on the national market was again apparent with Auckland being one of the two regions to record a decrease with its median, declining from $340,000 to $336,500 in August, after a strong showing in July where it rose from the June figure of $323,710.

Sales volumes nationally were up from 7,802 in July to 8,191, still well down on the August 2003 sales of 10,193. Auckland accounted for most of the increase with sales up from 2,609 in July to 2,888 in August.

Around the country, Northland saw an increase in its median from $183,500 in July to $195,000 in August while Waikato/Bay of Plenty/Gisborne also experienced an increase from $200,000 to $210,000 in August.

Hawkes Bay was up from $190,000 to $211,500, but on reduced volumes, and Manawatu/Wanganui was unchanged at $140,000, as was Wellington at $265,000. Taranaki was the other region to show a decline with its median down from $176,500 to $161,050.

Nelson/Marlborough rallied after falls earlier this year with a median price increase from $262,000 to $270,000 and Canterbury/Westland was up from $216,000 to $218,750. Otago was up slightly from $180,000 to $183,000 while Southland recorded a good gain from $118,000 to $126,750.

Days to sell lengthened nationally from 30 to 31.

On a year-by-year basis the New Zealand median is up 14.88 per cent with Canterbury/Westland and Otago showing the strongest gains at 34.61 per cent and 38.11 per cent respectively. Auckland is now showing the smallest annual gain at 6.82 per cent.

Around the major centres Auckland City saw its median fall from $385,000 to $365,000 and Metropolitan Auckland was also down from $343,500 to $339,000, although volatility in apartment sales has affected the medians for some time, Mr Morley noted.

Hamilton City was up from $216,000 to $223,000 and Tauranga was up from $266,500 to $283,500. Central Wellington was down from $332,000 to $318,510. Christchurch City was up from $235,000 to $240,000 and Dunedin City was also up slightly from $185,000 to $186,500.

Download full article Res Report-August 2004

Don

Go Otago (Dunedin)!


Just keep it up until year to November.

deedee

It had a similar thing posted in the local rag this morning....saying anything decent is selling over and over again,higher and higher prices.Buying good real estate is still providing very good returns.How long for is another matter....
People have seen the UK real estate go up in huge leaps and bounds but in the last three years here in Otago it makes it look small.
Pad in QT last week, bought for 275k two and a half years previous, sold for 795K without even putting a paint brush to the place. :scared:

Pollster

And may it continue for the short term until we buy!!

It seems that the South Island is the place to be to make the money on the houses - my sis bought an apartment in Wanaka a year ago with her b/f - the land is still bare - not a brick or anthing else laid and they have just sold it with a profit of $300,000.

Don

Wanaka is said to be the new Queenstown.

deedee

the best one i've yet to see beaten is a local near where we are bought a farm for 900k, which was market value 4/5 years ago, sold it last year without doing anything to it for 2.6mill.And he made a living of over 70k a year off the place whilst there too

Having said that, the couple i worked with sold 1000 acres for over 10 million bucks......not bad for a farm his great grandfather was gifted by the government over 100 years ago.And they still have 11000 acres left to farm.

Don

And how is Gore?

deedee

Hi Don, Gore is great at present I have no clomplaints at all.In fact i'd say they are pretty much the best they've ever been for us.(we are here only part time though!)If i had to live in one place though i'd still choose the farm,thats home, Gore is a business necessity, but enjoyable all the same.
There sure is alot of complaints about the South on the forums though! I'm starting to wonder if i'm in a different NZ to everyone else......i'm still loving it here, works a plentiful, weather is far better than we had in the Highlands, just doesn't seem to be any pressure on people here.This is just about the cheapest place in NZ to live i guess?
What about Don and clan?Are you going to head back this way?The long term outlook is for a good summer

Don

Hiya Deedee, glad to hear all is going well. We're heading back but the family news is #3 is on the way in early Feb next year so that's the important thing and wife wants to have him in her homeland. Natural enough I guess, we blokes don't have too much say in these matters, do we?

Means extension to RRV then hopefully get IRRV in the autumn back in NZ.

(Sometimes when I read the dross I wish I was still allowed to post on the Deadside (though it may have livened up a bit), at least I appear to be able to check out the news these days but I will never post there again, it seems.)

Good ol' ripple effect, say I.

deedee

congrats and karma your way ....
I actually think the "other site" is more of "i'll punch you if i see you" site than this one is.There are some serious nutters on there.I can't believe someone on there actually went to the trouble to send me loads of hate mail and someone else threatening my wife and i Here's for voicing an opinion eh.

theres a new site opening up soon called Don't go to NZ for all the cheesed of people to whine to each other on.It should be pretty busy!

southerner

I'll second that!!

Don, I was going to mention that we drove by your place last week and looks like the cops were doing a drugs bust there. Hope your insurance covers costs to clean up the P lab now. Ah, the joys of being an absent landlord.

Don

Long as I get my cut!

Southerner - that 'last' post of yours there was a beaut - anyone interested in NZ should check it out http://www.*****.co.uk/chat/phpbb/vi...3109&highlight=