Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ house sales fall 14.8% in May from year earlier

NZ house sales fall 14.8% in May from year earlier, LVR curbs crimp lower-value sales

By Jonathan Underhill

June 16 (BusinessDesk) - New Zealand house sales fell in May from the same month last year and the volume of sales below $400,000 tumbled suggesting some heat is coming out of the market and restrictions on low-equity loans are sapping demand at the cheaper end of the market.

Sales rose 15.9 percent from April to 6,572 in May and were down 14.8 percent from the same month of 2013, according to the Real Estate Institute of New Zealand. The national median price fell $2,250 from April to $430,000 to be up $38,000 from a year earlier.

Last week, the Reserve Bank affirmed its track for raising borrowing costs and said strong net immigration and income growth will boost housing demand, while house price inflation is expected to moderate as more supply becomes available. Its restrictions on high loan-to-value mortgages, introduced last October, has seen the percentage of loans at LVRs of 80 percent or more fall to 4.3 percent in April, slightly up on March but down from nearly one third of all home loans when the policy was introduced.

The number of sales below $400,000 fell by 25 percent in May from a year earlier, following a 31.6 percent slide in April, which the REINZ said "may be indicative of fewer sales in the lower price brackets since the imposition of the LVR restrictions."

Days to sell rose by four to 38 between May and April and the median was three days longer than in May 2013.

"We would normally expect an increase in sales in May compared to April, however, after taking seasonal factors into account the increase was just 1.6 percent," said REINZ chief executive Helen O’Sullivan. "This leads us to conclude that the drop in sales in April due to the combination of Easter and Anzac Day has not created an offsetting increase in sales in May.”

The REINZ Stratified Housing Price Index, which adjusts for any skew in the median value of houses sold month to month and is the Reserve Bank's preferred measure, fell 1.2 percent from April to 3,925.1.

The total value of residential sales, including sections, was $3.55 billion in May, compared to $3.09 billion in April, and $3.78 billion in May 2013. For the 12 months ended May the total value of sales was $39.55 billion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news