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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news