NZ house prices flat in July, but Auckland down 3.2%

NZ house prices flat in July, but Auckland down 3.2%

The national median house price was flat at NZ$340,000 in July from June, the Real Estate Institute of New Zealand (REINZ) reported, arguing this was a sign of a recovery in the market. However, Auckland house prices fell 3.2% in July from June and are now down 8.5% from their December 2007 peak, while the national median price remains 3.4% off its November peak. "The New Zealand residential property market staged an unexpected recovery in July "“ with the notable exception of Auckland," the REINZ said. "There is an unmistakeable degree of recovery in July, which is surprising given that it is generally regarded as the worst winter month, with good improvement in median prices around the country despite continued low sales volumes," said REINZ President Murray Cleland.Nine of the 12 regions surveyed reported increases in median prices, he said, noting however that Auckland was the exception where the median price fell to NZ$421,000 from NZ$435,000 in June. Cleland said further falls in apartment prices and few sales for over NZ$1 million were factors in the Auckland weakness. "Its not surprising that Auckland is finding itself very much at the epicentre of the current economic recession and in particular the continued fallout from the finance sector collapses, and it's therefore understandable that confidence in the Auckland residential market at this point is pretty low," Cleland said. "However the fact is that for the market nationally to achieve an unchanged median price against the pressure of the declining Auckland market is a remarkably good result in the circumstances and it is beginning to look like the June month's figures may have given a poor reading of the market's health," he said. Cleland referred to statistics for July from Quoteable Value which showed an acceleration of the fall in prices. "Those statistics are based on property settlements, whereas ours are based on unconditional contracts, so inevitably the earlier statistics relate to June sales, reported in July. Ours are for July sales made in the same month and therefore will always give a more current picture of the market," he said. The REINZ figures showed a 1.44% fall in house prices from a year ago, which was a slight improvement from the 2.15% fall in June from a year ago, it said. "If you regard the annual percentage change as a yardstick, then you would have to say, at best, the trendline is certainly not deteriorating as much as some would have you believe, and on a month to month basis, a slight improvement can be detected," Cleland said. "As for the long term prognosis, there are plenty of people talking about a 10 per cent decline in values, but based on today's figures, a decline of that magnitude is not evident yet," he said. "If this is as bad as it gets, then perhaps the market is in better shape than we thought." Cleland said sales in June were often due to those sellers being forced to sell, while sellers were holding to their prices in July. The number of days to sell nationally rose to 58 in July from 53 in June and is above the 31 seen a year ago. The volume of sales rose to 4,489 in July from 4,305, but remained below the 6,660 seen in July a year ago. Here is REINZ's commentary on the various individual regions.

Northland In total, 119 houses sold in Northland in July (June 2008: 108; July 2007: 222). The median price rose to $315,000 from $302,750 in June (July 2007: $316,500). 14 houses sold in the Whangarei County area in July (June 2008: 13; July 2007: 31). The median price rose to $454,000 from $427,500 in June (July 2007: $420,000). 61 houses sold in Whangarei City in July (June 2008: 52; July 2007: 118). The median price rose to $304,000 in July, from $301,000 in June (July 2007: $310,000). Auckland The median house price in Auckland eased to $421,000 in July, from $435,000 in June (July 2007: $445,000). In total, 1,411 houses sold, down on the 1,466 sold in June (July 2007: 2,446). The median sales price for a North Shore City home eased to $483,500 in July, from $510,000 in June (July 2007: 555). 230 houses sold, down on the 271 sold in June (July 2007: 395). Sales volume rose in Waitakere City in July with 188 houses sold (June 2008: 169; July 2007: 311). The median price increased, reaching $355,000 in July (June 2008: $337,000; July 2007: $396,125). The median price for an Auckland City house eased to $443,000 in July (June 2008: $472,100; July 2007: $496,600). 532 houses sold in July, 10 less than the 542 sold in June (July 2007: 778). 276 houses sold in Manukau City in July (June 2008: 265; July 2007: 570). The median price fell to $426,250 from $442,000 in June (July 2007: $385,000). Sales eased in Papakura with 38 houses sold (June 2008: 51; July 2007: 93). The median price also eased to $302,500 in July from $320,000 in June (July 2007: $320,000). The median price for a Metropolitan Auckland house eased to $425,000 in July (June 2008: $440,000; July 2007: $442,500). In total, 1,264 houses sold, down on the 1,298 sold in June (July 2007: 2,147). 68 houses sold in Rodney District, down on the 77 sold in June (July 2007: 160). The median price dipped to $455,000 from $470,000 in June (July 2007: $488,250). The median price for a Franklin District home rose to $379,000 in July (June 2008: $368,000; July 2007: $388,000). 50 houses sold, one more than the 49 sold in June (July 2007: 85). 29 houses sold in the Thames/Coromandel region in July, down on the 42 sold in June (July 2007: 54). The median price eased to $352,500 from $377,500 in June (July 2007: $433,000). The median price for an Outer Auckland home reached $410,000 in July, up from $407,500 in June (July 2007: $450,000). 147 houses sold (June 2008: 168; July 2007: 299). Waikato/Bay of Plenty/Gisborne The median price for a house in the Waikato/Bay of Plenty/Gisborne region rose to $325,000 in July (June 2008: $316,000; July 2007: $320,000). 637 houses sold (June 2008: 581; July 2007: 949). Sales rose in Waikato Country in July with 115 houses sold (June 2008: 112; July 2007: 194). The median price also rose, to $275,000 in July (June 2008: $244,250; July 2007: $247,500). The median price for a Hamilton City house reached $335,000 in July, from $323,000 in June (July 2007: $350,000). 146 houses sold in July, down on the 158 sold in June (July 2007: 232). Sales volume rose in Western Bay of Plenty Country in July with 47 houses sold (June 2008: 33; July 2007: 71). The median price reached $400,000 in July (June 2008: $382,500; July 2007: $339,000). The median price for a house in Mt Maunganui/Papamoa reached $412,500 in July (June 2008: $398,000; July 2007: $420,000). 51 houses sold, five more than the 46 sold in June (July 2007: 61). 97 houses sold in Tauranga in July, up on the 75 sold in June (July 2007: 126). The median price eased to $350,000 in July (June 2008: $363,000; July 2007: $372,750). Rotorua's median price rose to $271,250 in July, from $255,000 in June (July 2007: $261,400). 71 houses sold in July, up on the 37 sold in June (July 2007: 104). 24 houses sold in Taupo in July, down on the 30 sold in June (July 2007: 51). The median price increased to $361,250 from $360,500 in June (July 2007: $350,000). The median price for a King Country home rose substantially in July, reaching $162,500 (June 2008: $97,500; July 2007: $105,000). 14 houses sold during the month (June 2008: 12; July 2007: 13). The median price for a Gisborne City home eased to $212,000 in July, from $220,000 in June and $302,000 in July 2007. 31 houses sold, three more than the 28 sold in June (July 2007: 35). Just one house sold in Gisborne Country in July, down on the four sold in June and the three sold in July 2007. The median price achieved was $67,000 (June 2008: $275,000; July 2007: $290,000). Sales eased in Eastern Bay of Plenty Country with 40 houses sold in July (June 2008: 46; July 2007: 59). The median price decreased to $257,500 in July, from $288,750 in June (July 2007: $289,000). Hawkes Bay Sales volume increased in the Hawkes Bay in July with 167 houses sold (June 2008: 136; July 2007: 239). The median price also rose to $282,000 (June 2008: $261,000; July 2007: $287,000). The median price for a house in Napier City reached $312,000 in July, up from $292,500 in June and $311,000 in July 2007. 83 houses sold, 31 more than the 52 sold in June (July 2007: 102). 56 houses sold in Hastings City in July 2008 (June 2008: 57; July 2007: 98). The median price rose to $270,000 in July, up from $250,000 in June (July 2007: $279,000). Hawkes Bay Country's median price improved to reach $430,000 in July, from $395,000 in June and $365,000 in July 2007. Ten houses again sold during the month (June 2008: ten; July 2007: 13). Manawatu/Wanganui The median price for a house in the Manawatu/Wanganui region rose to $233,750 in July, from $213,750 in June and $230,000 in July. 230 houses sold (June 2008: 196; July 2007: 351). The median sales price for a house in Palmerston North City increased to $272,500 in July, from $240,000 in June (July 2007: $287,094). 112 houses sold (June 2008: 88; July 2007: 134). Sales increased slightly in Manawatu Country with 25 houses sold (June 2008: 16; July 2007: 37). The median price also improved, reaching $235,000 from $162,500 in June (July 2007: $197,500). The median price in the Manawatu Region rose to $260,000 in July, from $222,500 in June and $247,500 in July 2007. 165 houses sold (June 2008: 141; July 2007: 247). 44 houses sold in Wanganui City in July, two more than the 42 sold in June (July 2007: 75). The median price rose to $187,500 in July, up from $155,000 in June and $171,000 in July 2007. The median price in the Wanganui Region rose to $185,000 in July from $166,000 in June (July 2007: $173,500). 65 houses sold in July (June 2008: 55; July 2007: 104). Taranaki The median price for a house in Taranaki rose to $265,000 in July, up from $255,000 in both June 2008 and July 2007. 155 houses sold (June 2008: 135; July 2007: 151). 28 houses sold in the Taranaki Country region in July (June 2008: 18; July 2007: 19). The median price eased from $222,500 in June to $190,000 in July (July 2007: $190,000). The median sales price for a New Plymouth City house remained steady at $285,000 in both June and July 2008 (July 2007: $310,000). 76 houses sold in July (June 2008: 69; July 2007: 67). Wellington Wellington's median price increased to $371,000 in July, from $366,500 in June and $360,000 in July 2007. In total, 503 houses sold, up on the 458 sold in June (July 2007: 652). 39 houses sold in the Wairarapa in July (June 2008: 45; July 2007: 67). The median price rose to $252,500 from $247,000 in June (July 2007: $250,000). The median price for an Upper Hutt house eased slightly to $315,000 from $325,000 in June (July 2007: $342,500). 57 houses sold, 20 more than the 37 sold in June (July 2007: 62). 98 houses sold in the Hutt Valley, up on the 91 sold in June and down on the 140 sold in July 2007. The median price rose from $305,500 in June to $337,250 in July (July 2007: $340,000). The median price for a house in Otaki/Paekakariki eased to $303,000 in July, from $332,500 in June and $351,300 in July 2007. 65 houses sold, five more than the 60 sold in June (July 2007: 100). Sales rose slightly in Pukerua Bay/Tawa in July, with 46 houses sold (June 2008: 43; July 2007: 54). The median price also fell to $337,800 in July from $367,000 in June (July 2007: $345,000). 47 houses sold in Central Wellington in July, up on the 40 sold in June (July 2007: 84). The median price increased to $420,000 in July, from $387,500 in June and $337,000 in July 2007. Nelson/Marlborough The median price for a Nelson/Marlborough house eased to $330,000 in July, from $335,000 in June (July 2007: $320,000). 177 houses sold, up on the 169 sold in June (July 2007: 224). 61 houses sold in Nelson City in July, down from 67 in June (July 2007: 89). The median price eased to $310,000 from $345,000 in June and $319,000 in July 2007. The median price for a Nelson Council zone house eased to $330,000 in July, from $345,000 in June and $320,000 in July 2007. 107 houses sold during the month (June 2008: 108; July 2007: 140). 70 houses sold in Marlborough in July (June 2008: 61; July 2007: 84). The median price increased to $324,000 from $315,000 in June and $319,500 in July 2007. Canterbury/Westland 675 houses sold in Canterbury/Westland in July, up on the 666 sold in June (July 2007: 886). The median price also rose to $300,000 from $299,000 in June (July 2007: $310,000). The median price for a house in Christchurch City reached $316,500 in July, up from $315,000 in June (July 2007: $330,000). 481 houses sold, up on the 479 sold in June (July 2007: 589). The median price for a home in Rangiora eased to $290,000 in July, from $318,750 in June (July 2007: $318,000). 20 houses sold, two less than the 22 sold in June (July 2007: 29). 14 houses sold in North Canterbury in July (June 2008: 16; July 2007: 34). The median price achieved eased however to $247,500 from $290,000 in June (July 2007: $285,000). The median price for a Canterbury Country home dipped to $335,000 in July from $365,000 in June (July 2007: $389,000). 47 houses sold, up on the 22 sold in June 2008 (July 2007: 32). 29 houses sold in Mid Canterbury in both June and July 2008 (July 2007: 42). The median price rose to $257,000 in July, from $248,000 in June (July 2007: $264,500). Sales fell slightly in Timaru in July, with 29 houses sold (June 2008: 33; July 2007: 62). The median price rose to $230,000 in July, well up on June's median price of $195,000 (July 2007: $228,000). The median price for a house on the West Coast rose to $191,500 in July, from $185,000 in June and $162,500 in July 2007. 30 houses sold, up on the 25 sold in June (July 2007: 32). 194 houses sold in Outer Canterbury in July (June 2008: 187; July 2007: 297). The median price increased to $263,000 in July from $250,000 in June and $262,000 in July 2007. Central Otago Lakes 69 houses sold in July, eight more than the 61 sold in June (July 2007: 84). The median price reached $565,000 in July, up from $514,000 in June (July 2007: $452,500). The median price for a house in Central Otago rose to $497,500 in July, from $440,000 in June (July 2007: $364,750). 26 houses sold (June 2008: 22; July 2007: 48). Sales volume rose slightly in Queenstown with 43 houses sold in July (June 2008: 39; July 2007: 36). The median price rose to $586,667 from $580,000 in June (July 2007: $592,500). Otago 217 houses sold in Otago in July, up on the 177 sold in June (July 2007: 238). The median price rose to $240,000 from $225,000 in June and $227,875 in July 2007. Sales volume dipped in North Otago with 23 houses sold (June 2008: 27; July 2007: 30). The median price rose to $205,000 in July, from $200,000 in June (July 2007: $208,250). The median price for a house in Dunedin City increased to $249,500 in July, from $244,600 in June and $247,000 in July 2007. 180 houses sold (June 2008: 131; July 2007: 170). Sales volume eased in South Otago with 11 houses sold (June 2008: 16; July 2007: 31). The median price eased to $130,000, from $151,000 in June (July 2007: $165,000). Three houses sold in East Otago in June and July 2008 (July 2007: seven). The median price eased to $135,000 in July from $233,000 in June and $187,000 in July 2007. Southland Sales volume fell in Southland with 129 houses sold (June 2008: 152; July 2007: 218). The median price eased to $172,000 in July, from $182,500 in June and $185,000 in July 2007. Sales volume eased in Invercargill in July with 87 houses sold (June 2008: 101; July 2007: 157). The median price eased also to $183,000 from $185,000 in June and $197,000 in July 2007. The median price for a house in Gore eased to $147,500 in July, from $158,000 in June (July 2007: $115,000). 20 houses sold, six less than the 26 sold in June (July 2007: 29).

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