NZ home sales jump in March, median house price edges up

Thursday 9th April 2009

New Zealand home sales jumped last month and the median price edged higher, which may reflect returning demand amid lower mortgage rates and property values.

Home sales rose to 6,694 in March from 5,228 in February, according to the Real Estate Institute of New Zealand. That's up from the 5,129 homes sold in March 2008. The median house price rose to $335,000 last month, from $330,000 in February. The median price was $349,000 in March 2008.

"The indications are that there is renewed interest in the real estate market, stimulated by the drop in interest rates and the affordability of properties," said REINZ president Mike Elford. Still, it's too early to predict a recovery, with volumes coming off three light months through February, he said.

The REINZ report comes a day after QV Valuations data showed property values fell 9.3% last month, while noting anecdotal signs that investors are sniffing about the market a bit more.

Shorter-term and variable mortgage rates have tumbled with the central bank's rate cuts since July last year, though longer-term fixed rates have begun climbing, prompting Governor Alan Bollard last week warned that longer-term wholesale rates were "out of line" with the bank's expectations, given any recovery in economic growth is likely to be gradual. Bollard's expected to cut the official cash rate by 50 basis points to 2.5% at the end of the month.

Sales rose in all districts expect Manawatu/Wanganui, where the number of properties sold slipped to 283 from 308, while the median price fell to $225,000 from $230,000 in February.

The median price in Auckland rose to $435,000 from $421,500 while sales jumped to 2,190 from 1,590.

In Waikato/Bay of Plenty/Gisborne, the median price fell to $310,000 from $316,000 and sales rose to 944 from 712 in February. Hawkes Bay sales climbed to 244 houses from 182, with the median price slipping to $265,000 from $267,000.

Wellington's median price edged up to $376,000 from $375,000 and sales climbed to 755 from 639 from 396. In Canterbury/Westland, there were 1,090 houses sold in March, up from 815, while the median price was unchanged at $290,000.

You can view regional highlights here: http://www.landlords.co.nz/read-article.php?article_id=3436

Businesswire.co.nz

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