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

 


NZ house sales fall in June, led by cheaper properties

NZ house sales fall in June, led by cheaper properties

By Suze Metherell

July 14 (BusinessDesk) - New Zealand house sales fell in June from a year earlier, led by properties of $400,000 or less, indicating the Reserve Bank's restrictions on low-equity loans are curbing demand at the cheaper end of the market.

Sales fell 6.1 percent in June from the same month of 2013 to 5,763 and were down 12.3 percent from May, according to the Real Estate Institute. The national median price rose $33,250, or 8.4 percent, in the year to $427,250 and was 0.6 percent lower than in May.

The central bank introduced restrictions on high loan-to-value mortgages last October to take the steam out of the housing market in Auckland and Christchurch which it said could stoke inflation. Since then the percentage of loans at LVRs of 80 percent or more have fallen to 5.6 percent in May, slightly up on the first months of the year, but well below October's 11.5 percent rate.

The number of sales below $400,000 fell by 17 percent in June, from a year earlier, following a 25 percent annual drop recorded in May, which the REINZ said may be a reflection of the LVR restrictions.

Sales of properties with a price tag of more than $1 million rose 19 percent in the year, to make up 7 percent of all sales in June, while sales between $600,000 and $999,999 rose 6.5 percent in the year to make up 20 percent of sales. Houses in the $400,000 to $599,999 price range rose 2.3 percent compared to a year earlier to make up 28 percent of total sales.

The number of days to sell increased by five to 39 in June compared to a year earlier, one day longer than in May.

"Volumes continued to trend down in June, as they have done for the past several months," said REINZ chief executive Helen O'Sullivan. "We are starting to see a number of regions record annual falls in the number of sales at around 20 percent, with only modest increases in those regions where sales numbers are rising."

The stratified median housing price index fell 0.3 from May. In Auckland, prices rose 1.6 percent in the month on that measure, Christchurch fell 1.9 percent and Wellington dropped 4.3 percent. Over the year the national index increased 6.2 percent, with the Auckland index 6.5 percent higher, the Christchurch index up 5.5. percent and the Wellington index declining 3.1 percent.

The total value of residential sales, including sections, was $3.08 billion in June, compared to $3.06 billion a year earlier and $3.55 billion in May. For the 12 months ended June 30 the total value of residential sales was $39.58 billion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news