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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news