National median prices fell 2.6% to $416,000 in July but are up 8.1% compared to a year ago, according to the latest index from the Real Estate Institute of New Zealand (REINZ).
In the same month sales increased by 2.3% but are down 13% compared with July 2013 and days to sell improved by two days to 37 days compared to June.
According to REINZ chief executive Helen O’Sullivan, the real estate market is firmly in winter mode at present with listings low and activity muted across the country. ‘Sales volumes picked up a little in July compared to last month but this is about in line with the normal seasonal pattern. Rising interest rates and the forthcoming election are probably also influencing buyer behaviour,’ she said.
‘Reports on the effects of the LVR restrictions continue particularly from the regions, where the reported lack of able buyers is filtering up the price points and on to vendor behaviour,’ she explained, adding that the increase in the national median price is being driven by Auckland and Canterbury/Westland.
A breakdown of the figures shows that five regions recorded an increase in the median price compared to July last year and 83% of this growth was in Auckland, 19% in Canterbury/Westland and 9% in Waikato/Bay of Plenty contributing 9%. Together these three regions accounted for 111%of the increase in the median price between July 2013 and July 2014, with the remaining nine regions contributing -11% of the increase in the median price.
Canterbury/Westland recorded the largest increase in median price compared to July 2013, with an 11.1% increase, followed by Auckland with a 10.5% increase and Waikato/Bay of Plenty with a 5.8% increase. Compared to June, Southland recorded the largest increase in median price, up 4.2%, followed by Otago with 3.8% and Auckland with 1.7%.
Some eight regions recorded an increase in sales volume compared to June with Hawkes Bay recording the largest increase of 22.1%, followed by Otago with 12.4% and Manawatu/Wanganui with 12%.
Compared to July 2013 nine regions recorded a decrease in sales volume with Otago recording the largest fall of 20.8%, followed by Hawkes Bay with a fall of 19.8% and Auckland with a fall of 18.7%.
While the total number of sales was down 13% compared to July 2013, the number of sales below $400,000 fell by 21.8%. This follows a fall in sales below $400,000 of 17.3% between June 2013 and June 2014. O’Sullivan said this may be indicative of fewer sales in the lower price brackets since the imposition of the LVR restrictions.
The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can impact on the median price, is 5.9% higher than July 2013, at 3885.5. The Auckland Index has risen 12.2% compared to July 2013, with the Christchurch Index up 13.9% and the Wellington Index down 2.3%.
Homes took two days less to sell in July compared to June at 37 days. Compared to July 2013, the median number of days to sell was two days longer. Four regions saw an improvement in the number of days to sell between July 2013 and July 2014, with Southland recording the largest improvement of six days. Auckland saw its number of days to sell ease by three days.
For the month of July, Canterbury/Westland recorded the shortest days to sell at 30 days, followed by Auckland at 32 days and Otago at 37 days. Northland recorded the longest number of days to sell at 76 days, followed by Manawatu/Wanganui and Central Otago Lakes with 59 days. Over the past 10 years the median days to sell for the month of July has averaged 39 days across New Zealand.
