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Strong Real Estate Sales - Trend Continues

Strong Real Estate Sales - Trend Continues


House sales continued their trend upwards during the month of November.

According to the latest residential sales statistics released today by the Real Estate Institute of New Zealand (REINZ), total dwelling sales reported by real estate agents during the month of November set a record for this year with 9,832 dwellings changing hands for a total value of $2.39 billion.

While a high for this year, REINZ national president, Graeme Woodley, said this was not the greatest number of houses ever sold in one month.

“In February and March 1996, over 10,000 homes were sold each month. However last month’s median price of $195,000 is a record.”

Mr Woodley said the high level of sales had been expected.

“November is always a peak selling month during the year. With the current stability in the economy and mortgage rates for the foreseeable future, people have more confidence when buying property.

“We are also seeing increasing numbers of people investing in the residential market as part of their superannuation planning. Positive migration flows also play their part in the demand for housing.”

All but one region, Northland, recorded increases in their individual median price during the month. Wellington recorded the largest increase – up to $222,000 from the $205,137 median price of October 2002.

Eight regions also recorded increasing numbers of houses sold during the month, with Wellington again showing the largest increase, at 1,213 showing an increase of 135 over the previous month.

Nelson / Marlborough and Southland regions also reported record sales during November.

While sales continued at strong levels in the Auckland region, the housing market in Metropolitan Auckland appears to have steadied with the total number of homes sold easing back slightly and the individual median price for the district also falling by $2,000.

“When there has been as much interest in the market as we’ve witnessed this year, we usually note a slight levelling after a few months,” he commented. “While the Auckland property market continues to be buoyant, this steadying appears to be a realistic reappraisal of current values.”

Nationally section sales eased to 585 from the 867 recorded in October though their median price increased to reach $92,000.

The level of sales is close to November 2001 when 567 sections sold. The median price improved by $7,000 over the 12 month period.

Mr Woodley is emphatic about the importance of including property in any investment planning.

“The general public is now recognising the wisdom of investing within New Zealand, and in particular in real estate, as a safe haven for their savings. Difficulties have been experienced in other forms of investment over the past 12 months – a stark contrast to the confidence New Zealanders can have in the long term benefits of investment in property.”

Regional highlights:

Northland: Northland reported buoyant house sales during the month, at 252 being the highest number sold in November since 1996 when 304 homes changed hands. The median price, however, eased back to $157,750 from the $165,000 recorded in October. The 37 sections sold during the month reached a median price of $90,000.

Auckland Another strong month for sales in the Auckland region, at 3,450, up from October’s 3,392 and well ahead of November 2001 when 2,706 homes sold. The record month for house sales in the Auckland region was March 2002, when 3,708 homes sold. The median price continued to edge up slightly to reach $280,000 ($1,000 more than the previous month). While the median price for sections increased to reach $137,000, total sales decreased to 170 from the 212 recorded in October. The total value of all homes sold during November in the region was $1.191 billion.

In Metropolitan Auckland, however, house sales eased slightly to 2,986 from the 3,009 recorded the previous month. The median price also corrected slightly back to $285,000 – down $2,000 from October, but well ahead of November 2001 when 2,376 houses sold at a median price of $250,000. The total number of sections sold decreased, with 114 selling for an increased median price of $142,000.

North Shore City achieved record sales in November with 730 homes changing hands at a relatively steady median price of $300,000. On an annual comparative basis, the high level of this year’s sales are even more marked when compared to the 496 houses sold in November 2001 for the median $272,500. Sixty three sections also sold last month at a median $145,000.

House sales continued at strong levels too in Waitakere City, however total sales eased back slightly to 408 from the 422 recorded in October. Their median price also corrected, easing back slightly to $220,000 (the same as recorded in September 2002) from the $221,444 reached in October.

At 1,076, Auckland City house sales were slightly down from the 1,125 sold in October, their median price also appeared to correct slightly, down $5,000 from October’s $335,000 to $330,000. On an annual comparative basis the level of sales were comparable to the 1,024 homes sold in the same month last year; however the November 2001 median price was considerably lower at $266,375. Section sales decreased during the month to 17 however their median price reached $230,000.

Sales also eased in Manukau City with 685 homes selling at a median $277,000 in November. In October 762 houses had changed hands for a median $278,500. Twenty sections also sold for a median $116,500.

Sales continued at strong levels in Papakura District with 87 houses changing hands during the month for the high median price of $218,000 – well ahead of November 2001 when 51 houses sold for a median price of $175,000. Only one section sold during the month at $190,000.

In the Rodney district (which includes Rodney North and the Hibiscus Coast) sales were particularly strong with 269 selling for a median $290,000 price. In October, 183 homes sold at a median $257,000. Section sales were also high, with 27 changing hands for an improved median of $160,000.

Thames / Coromandel recorded a slightly lower level of sales than the previous month. In November 108 houses changed hands for an eased median of $176,500 – both totals decreased from October when 116 dwellings sold at a median $187,000. Section sales were steady at 13, their median eased back to $83,750 from the $90,000 recorded in October.

Waikato / Bay of Plenty / Gisborne An excellent month for sales 1,453 houses changing hands in November. The median price also improved to $169,000, the same level as in April earlier this year. While sales were well up on an annual comparative basis to the 1,086 recorded in November 2001, the median price had only increased by $5,750 over the 12 month period. Section sales remained relatively strong, although, at 112, they were down from the 137 recorded in October. The median price for all sections sold in the region reached $85,000.

Hawke’s Bay At 332, Hawke’s Bay region recorded the second highest level of sales in one month this year (342 having been sold in May). Their median price improved to $140,000 (October 2002: 299 sold at a median $134,000). Ten sections also sold for a median price of $104,000.

Manawatu / Wanganui Strong spring sales were recorded for the second month in a row in the Manawatu / Wanganui region with the 414 sold reaching an improved median of $111,000. (October 2002: 417 sold for a median $105,000). Section sales dropped back to 6 from the 28 recorded the previous month, their median moved back up however to reach $48,500.

Taranaki Taranaki house sales continued at strong levels with an increased median price. In November 214 homes sold for a median $115,000. In the same month last year (November 2001) 203 had sold for a median $112,500. Only 6 sections sold during the month at a median $49,000.

Wellington A record setting month for Wellington region house sales with the highest number ever sold in the district, 1,213, in one month and a new record median price of $222,000. In November 2001, 1,077 homes sold at a median $206,500. Section sales however dropped back to 29 from the 82 recorded in October. The median price for all sections sold in the region in November was $79,000.

Nelson / Marlborough Nelson / Marlborough region also reported record sales in November with 425 homes changing hands for a median $175,500. In October 2001, 383 homes sold at a median $169,500. Sales were well ahead of November 2001 when 347 homes had sold at a median $151,000. Sixty three sections also sold during the month for a steady median price of $82,500.

Canterbury / Westland Total sales for the Canterbury / Westland region eased back slightly from October when 1,244 homes had sold. In November 2002 a total of 1,192 houses sold for a slightly increased median price of $149,950. (October 2002: $149,000.) On an annual comparative basis however, the current strength of the residential real estate market is more strongly underlined – 899 homes having sold in November 2001 for a median price of $140,000.

Christchurch City sales totalled 784 with an increased median price of $165,000 (October 2002: 820 sold at a median price of $158,694). Thirty one homes sold in Avonhead for a median $236,000 while in the North Western inner suburbs of Fendalton, Ilam and Merivale, 83 houses sold for a decreased median of $247,500. Seventy three homes were sold in Timaru for the increased median price of $95,000. Sales were strong on the West Coast, where 49 homes changed hands for the lower median of $58,500.

At 75, section sales were higher than November in the previous year when 68 had sold. The median price for all sections sold in the region during the month was $84,500.

Otago Homes continued to sell readily in the Otago region in November with 1,192 changing hands at a new median high of $149,950 (in October 1,244 houses sold at a median $149,000). Seventy five sections also sold during the month for a median $84,500.

Southland A record month for sales in the Southland region with 360 houses selling for a median price of $84,375. The previous record for sales was in April when 351 changed hands for a median $82,000. However only 9 sections sold at a median price of $80,000.

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