Residential Property Sales Slightly Improvement

Residential Property Sales Shows Slight Monthly Improvement

Residential property sales for September have shown a slight improvement over the previous month but are still at their lowest September monthly total for at least a decade, according to figures released today by the Real Estate Institute of New Zealand (REINZ).

Across the country, there were 4,323 residential properties sold in September 2010 compared to 4,287 in August 2010. This is less than half the total number of properties sold in September 2006, when the market was at the height of the property boom.

“It’s pleasing the median price has held relatively steady at $350,000 for the past two months, which is $20,000 up on September 2008 when the market was at its worst in the midst of the global economic crisis,” says REINZ spokesman Bryan Thomson.

“Sales continue to remain very subdued across the country but some of this could be attributed to uncertainty over the rise in GST and tax cuts, which came into effect on 1 October and also the shocking spring weather we have been experiencing. We would expect to see a pick up in the market in coming months as warmer spring and summer weather generally brings an influx on new property listings onto the market providing more choice for buyers.”

The devastating earthquake in Canterbury also continues to have an effect with the Canterbury/Westland region’s total of 396 residential property sales for September 2010 less than half that recorded for the same month last year. It is also down 227 sales, or 36 per cent, on the previous month.

The national median number of days to sell remained steady at 43 for September, the same as the previous month but it is still 10 days longer than the 33 days recorded in September 2009.

The total value of residential sales in September, including sections, held steady at $1.86 billion. The breakdown of the values of the properties sold is 156 for $1 million plus, 505 between $600,000 and $999,999, 1,080 between $400,000 and $599,999 and 2,582 for under $400,000.

From district to district, changes in the median prices varied from increases of up to 14.81 per cent in three regions to falls of up to 4.77 per cent in eight regions compared with the same month last year.

ENDS

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