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

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news