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House sales slump but prices defy grim predictions

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  • House sales slump but prices defy grim predictions

    House sales slump but prices defy grim predictions

    Thursday, 13 November 2008


    Property sales have slumped in past year, but house sale prices are so far holding against dire predictions, new data from the Real Estate Institute of New Zealand shows.
    There were 4469 sales in October, down 34.8 percent on a year ago and down 0.7 percent on the previous month, according to the Real Estate Institute of New Zealand (Reinz).
    The median price of houses sold in October rose 1.5 percent from September but was 4.28 percent lower than a year ago.
    "A year ago, financial commentators were predicting a 30 percent fall in residential property values," Reinz vice president Peter McDonald said.
    "But our figures show an overall decrease of just 4.28 percent from a year ago, and in fact, in five out of 12 regions, property sales values have actually increased," he said.
    The median house price New Zealand-wide in October was $335,000 compared with $330,000 last month.
    Northland, Hawke's Bay, Taranaki, Wellington and Southland all recorded a percentage increase in sales values over the corresponding period last year, with Taranaki doing the best with an increase of 8.67 percent closely followed by Northland with 8.38 percent.
    The biggest drop was in Central Otago Lakes where property values dropped by 12.84 percent.
    Regionally, Northland's median house price rose from $310,000 to $336,000 in October 2008 compared with October 2007, while Auckland showed a slight drop moving from $445,000 a year ago to $433,000 last month.
    In Waikato/BOP, the price dropped from $329,000 to $315,000, while in Hawke's Bay, there was a slight increase from $262,000 to $264,000.
    In Manawatu/Wanganui, prices fell from $233,250 to $230,000, but showed a sharp increase in Taranaki from $262,250 to $285,000. And in Wellington, prices rose from $365,000 to $369,000.
    In the South Island, Nelson/Marlborough saw a drop from $347,000 to $325,000; Canterbury/Westland a drop from $310,000 to $292,000 and the biggest fall was in Central Otago Lakes, from $545,000 to $475,000.
    Otago was down to $230,000 from $235,000 but Southland showed an increase, up to $198,500 from $186,000.
    - NZPA


    http://www.stuff.co.nz/4760122a13.html
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    How does one explain the fact that a RE agent has just valued my property at 30% less than what I paid in January?

    Choice A: RE agent is understating to make a quick sale and some quick cash
    Choice B: That report is total bollocks
    Choice C: Combo of above

    Comment


    • #3
      30% down?!

      Could it be a section? Is it on the (Upper) North Shore?

      Comment


      • #4
        Originally posted by k1w1 View Post
        How does one explain the fact that a RE agent has just valued my property at 30% less than what I paid in January?
        Originally posted by k1w1
        Are you kidding? I live in a cave with no door and super-fast broadband.
        Yep, your enthusiastic renovations have certainly paid off!

        Comment


        • #5
          Originally posted by k1w1 View Post
          How does one explain the fact that a RE agent has just valued my property at 30% less than what I paid in January?

          Choice A: RE agent is understating to make a quick sale and some quick cash
          Choice B: That report is total bollocks
          Choice C: Combo of above
          Choice D: You bought it off the plan 3 years ago and settled in Jan......

          Choice E: You bought it from a marketing company in Jan and paid 30% too much.

          Actually you probably didn't do either of those K1w1 but there are plenty of people out there who did.

          Comment


          • #6
            Positive spin from the Herald:


            Housing market shows signs of picking up
            House prices in Auckland and nationally are up and agents say a rosier picture of the market is finally beginning to emerge.

            Auckland prices rose from a median $420,000 in September to $433,000 last month and the national median nudged up from $330,000 to $335,000.

            Real Estate Institute figures out yesterday showed price rises in five out of the 12 regions surveyed nationally. But the country's national median price is still well under the $350,000 reached in October last year.

            Agents selling houses in Northland, Taranaki, Hawkes Bay, Wellington and Southland all enjoyed better prices last month than in September.

            "Despite all the negative stuff and people talking about a 30 per cent price drop, this is really good," said institute vice-president Peter McDonald.

            Most Auckland suburban areas showed big price rises.

            Waitakere's median rose from $360,000 in September to $390,000 on the back of 173 sales last month.

            Manukau's was up from $397,000 to $416,000 based on 281 sales.
            Papakura recorded 50 sales last month and its median price rose from $293,000 to $301,000.

            Agents selling places in the Auckland City Council boundaries recorded 465 sales and a median price rise from $450,000 to $472,000. Sales in the Franklin area pushed up the median from $365,000 in September to $367,000.

            North Shore bucked the trend. Based on 249 sales last month, prices dropped from $445,000 to $420,000.

            Agents in Rodney district made 97 sales but this area's median dropped from $440,000 in September to $435,000.

            ASB economist Jane Turner said the housing data showed mixed results. "While turnover remains weak at very low levels, the median house price and the median number of days to sell showed some slight improvement.

            "Typically, we avoid reading too much into monthly moves in house prices, as the sample is subject to compositional shift.

            "However, surprisingly, the median number of days to sell also implied some improvement in the housing market, falling from 56 to 51.

            "The number of days to sell is generally a fairly reliable barometer of the balance between supply and demand in the housing market, and the fall is consistent with an improvement in prices."
            DFTBA

            Comment


            • #7
              679 - it's not a section - it's a house as well. Area is right.
              Bob - my inane ramblings weren't supposed to be brought together into one post!
              Tel - D&E - neither applicable. I bought it at a good rate at the time.
              cube - that article just reinforces my disbelief

              Comment

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