House prices up, volumes down

Property

REINZ figures show sales are up compared with last month but down on May last year

16th Jun 14, 11:56am by Greg Ninness

The number of homes sold jumped sharply in May compared with April although the national median selling price fell slightly.

According to the Real Estate Institute of NZ figures, its members sold 6572 dwellings in May, an increase of 15.9% on April, while the median price declined by $2250 to $430,000.

However prices remain firm, with May’s median price $38,000 higher than in May last year, while the number of sales was down 14.8% compared with May last year. REINZ chief executive Helen O’Sullivan said all regions experienced a decline in the number of sales compared with a year ago, a continuation of the trend seen last month.

The Auckland and Canterbury markets continued to be the main drivers of rising house prices. The median price in the Auckland region was $625,000, compared with $611,500 last month and $565,000 a year ago.

In Canterbury/Westland, the median price was $415,000, compared with $395,000 last month and $360,000 a year ago.

Prices in Central Otago/Lakes also showed a strong increase, with a median of $499,000 in May, compared with $450,000 in April, and $465,000 a year ago.

In Hawkes Bay the median price increased to $285,000 from $269,000 last month, putting it exactly back where it was in May last year.

However prices in Wellington and many provincial centers showed declines. In Wellington the median declined slightly to $412,500 from $415.000 in April but was still up on the $390,000 median in May last year.

Northland, Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Nelson/Marlborough, Otago and Southland all showed slight falls in the median price compared with April.

You can access the REINZ's full region by region by region sales breakdown by clicking on the regional sales link below:

Here's its regional sales data.

There was also a small increase in the number of homes sold by auction last month, with auction sales risng from 1106 in April to 1141 in May. But that was well down on the 1567 homes sold by auction in May last year.The percnetage of homes being sold by auction is also falling.

Last month 17.4% of sales were via auction, compared with 19.5% in April and 20.3% in May last year.

Here's REINZ's full press release

House price index

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Source: REINZ

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17 Comments

by Simon | 16th Jun 14, 12:25pm 1402878337

Why does this guy report the 'median price' moves as a measure of price moves when they have gone to all the effort to get an index that attempts to better illustrate prices moves (for same house over time).

Anyway, index shows, prices are falling, led by auckland falling the most.

by Happy123 | 16th Jun 14, 2:03pm 1402884227

What?

"The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can impact on the median price, is 6.5% higher than May 2013, at 3925.1. The Auckland Index has risen 9.4% compared to May 2013, with the Christchurch Index up 9.0% and the Wellington Index up 1.1%."

Are you confused with the meaning of the words, higher, risen and up?

by iconoclast | 16th Jun 14, 2:06pm 1402884404

It's called "functional ambiguity"

by BigDaddy | 16th Jun 14, 12:36pm 1402878996

"The Auckland and Canterbury markets continued to be the main drivers of rising house prices. The median price in the Auckland region was $625,000, compared with $611,500 last month and $565,000 a year ago."

How does this paragraph compute with Simon's comment:

"index shows, prices are falling, led by auckland"

by Zombie ponzi | 16th Jun 14, 12:47pm 1402879669

Simons comment was with respect to the REINZ index which showed a -3.1% drop in Auckland and a -4.8% drop in Wellington (crickey).

If one were less scientific and cherry picked months, it is noteworthy that the REINZ median was $620k in November 2013 and $637k in March 2013.

Better to go with the index then?

by SK | 16th Jun 14, 12:50pm 1402879834

I didnt go to Kings, but I wionder if Simons idea of falling vs rising is topsy-turvy

by Zombie ponzi | 16th Jun 14, 1:26pm 1402882002

So if the median was $637k in March and is now $625k in May, there has been a 1.9% fall in prices over the last two months, or is that just cherry picking like BigDaddy does?

The REINZ index in theory is a better guide to what is happening.

by Zoltuger | 16th Jun 14, 2:23pm 1402885411

"REINZ statistics show now is a great time to sell your house" - preview of the June REINZ report

by dtcarter | 16th Jun 14, 12:59pm 1402880358

Full quote from the press-release

"The REINZ Housing Price Index fell 1.2% compared with April to sit at 3,925.1. Auckland fell 3.1% in May, Christchurch fell 2.3%, and Wellington fell 4.8%. For the 12 months to May, the Auckland Index rose 9.4%, the Christchurch Index rose 9.0% and the

Wellington Index rose 1.1%. The National Index increased 6.5% compared to May last year. "

by dtcarter | 17th Jun 14, 10:27am 1402957664

For all this talk of prices being "steady", the median rose $466/day in the auckland region compared with last month

Headline: "prices steady in May market"

That's 2.2%, or 27% annualised. In most countries that would be setting off alarm bells.

The story about the median being skewed because of the LVR regs... the LVR regs came in in October. Why should they be effecting the May sales but not April?

by Crazy Horse | 16th Jun 14, 1:16pm 1402881376

The "sheeple" are finally waking up to the "government, banks and media driven" Auckland property boom.

Statistics can be manipulated in so many ways ...but the best way to find out what is happening in the market place, is to attend auctions and open homes etc...listen to the "chatter", as that is where the real money is (or isn't) that is coming onto the market.

I do know one thing in the Auckland market.... there is a lot less activity at open homes/auctions, than there was 12 months ago ..... a picture paints a thousand words.

by spottie | 16th Jun 14, 1:44pm 1402883083

Don't worry, Bigdaddy will be along soon linking stats to the red hot Auckland auction results.

I mean Christchurch, or was it Wellington....oh heck....just give us the figures from Nuie and call them Auckland....that'll do.

by Triple | 16th Jun 14, 2:29pm 1402885747

Good call spottie!!

Perhaps Bigdaddy can explain why the auction rooms were full last year and are now only half full?

And he could further explain why last year around 80% were selling under the hammer, whereas now it's closer to 50%, if that.

Someone has to say this:

Over the last few months there appears to be fewer Asian buyers at the auctions...

by Crazy Horse | 16th Jun 14, 4:01pm 1402891301

.......and still no word from "Big Daddy" ..... where is that spruiker hiding ?

All comes back to the "greater fool" theory ... the property spruikers all need another "fool" to come along and pay a "greater" price for their property....so the name of the game is to ignore or manipulate any data that suggests Auckland property maybe isn't going up X% pa ..... and when is my rent going to "double" BD ?? ....... still waiting .......

Even the Auckland Asian buyers have realised the party is over ......

by Boatman | 16th Jun 14, 2:44pm 1402886661

The gap between ricjh and poor can only get wider .

According to OXFAM about 10% of New Zealanders hold more wealth than the remaining 90% .

I dont beleive it .......... 400,000 people hold more wealth then the rest of us combined .

What are the figures behind this ?

What is the threshold to be in the 10% ?

by steven | 16th Jun 14, 3:01pm 1402887701

One of the critques of these numbers as a system to determine inequality pointed out that really of the 10%, 1% and 0.1% gained by far the most. If that is similar at the bottom then maybe the bottom few % is way worse off which is what oxfam is seeing.

While in the USA say inequaility is severe here in NZ its hard to say its has changed much on 20 years, so Im all for some real data on this. Also it looks like WFF is a great leveler despite its critics.

Bring on the numbers...

regards

by Simon | 16th Jun 14, 2:44pm 1402886681

"The REINZ Housing Price Index fell 1.2% compared with April to sit at 3,925.1. Auckland fell 3.1% in May, Christchurch fell 2.3%, and Wellington fell 4.8%."

As I said, index (not median price moves) show prices fell in May. Auck prob having largest impact on national figures due to it's 3.1% fall with relatively large volume compared to all other centers. Provinces down less than 1%. An ok defensive play considering the much improved yields there.