New signs of slump in housing
By NICK CHURCHOUSE - The Dominion Post | Wednesday, 12 December 2007
House sales in November were at their lowest level for seven years, yet another sign of the end of the housing boom.
Real Estate Institute figures showed a national median house sale price of $352,000 for the month, after a dip in October, but the lowest November sales since 2000.
The record median price was 6 per cent up on last November, less than half the average annual increase of 13 per cent for the previous five years.
Houses are taking a week longer to sell than at the same time last year and the 7837 unconditional sales in November were 22 per cent down on last year, confirming that sellers are having more trouble closing deals.
Institute president Murray Cleland said the figures were up-to-date and eclipsed the Quotable Value statistics made public earlier this week that showed a 3 per cent drop in average sales price, the first dip after two years of steady growth.
Mr Cleland focused on growth in median prices and sales volumes in Auckland, ignoring the 20 per cent year-on-year national decline in volume and denying suggestions the market favoured buyers.
"The market has rallied yet again," he said.
The monthly figures from the real estate agent industry body give a snapshot of the latest sales, compared with QV, which uses a three-month average.
Real estate commentators say prices are unlikely to drop in the main centres, but regional prices are more susceptible.
The institute figures show the median sales price dropped in most of the 12 real estate regions, with increases in Auckland, Hawke's Bay, Taranaki, Wellington, and Canterbury-Westland.
Wellington valuer Ben Stevens said city rents might sustain values in the medium term, but it was a different story in provincial centres.
"They'll suffer most because rental levels aren't going to climb."
Auckland property commentator Olly Newland said it was too early to tell whether the market had turned for the worse.
Regions would behave according to their own market characteristics, he said.
ASB economist Nick Tuffley said the institute's figures were a sign of more to come.
"We expect further weakening of the market in the months ahead: lower turnover, rising days taken to sell and flat prices."
By NICK CHURCHOUSE - The Dominion Post | Wednesday, 12 December 2007
House sales in November were at their lowest level for seven years, yet another sign of the end of the housing boom.
Real Estate Institute figures showed a national median house sale price of $352,000 for the month, after a dip in October, but the lowest November sales since 2000.
The record median price was 6 per cent up on last November, less than half the average annual increase of 13 per cent for the previous five years.
Houses are taking a week longer to sell than at the same time last year and the 7837 unconditional sales in November were 22 per cent down on last year, confirming that sellers are having more trouble closing deals.
Institute president Murray Cleland said the figures were up-to-date and eclipsed the Quotable Value statistics made public earlier this week that showed a 3 per cent drop in average sales price, the first dip after two years of steady growth.
Mr Cleland focused on growth in median prices and sales volumes in Auckland, ignoring the 20 per cent year-on-year national decline in volume and denying suggestions the market favoured buyers.
"The market has rallied yet again," he said.
The monthly figures from the real estate agent industry body give a snapshot of the latest sales, compared with QV, which uses a three-month average.
Real estate commentators say prices are unlikely to drop in the main centres, but regional prices are more susceptible.
The institute figures show the median sales price dropped in most of the 12 real estate regions, with increases in Auckland, Hawke's Bay, Taranaki, Wellington, and Canterbury-Westland.
Wellington valuer Ben Stevens said city rents might sustain values in the medium term, but it was a different story in provincial centres.
"They'll suffer most because rental levels aren't going to climb."
Auckland property commentator Olly Newland said it was too early to tell whether the market had turned for the worse.
Regions would behave according to their own market characteristics, he said.
ASB economist Nick Tuffley said the institute's figures were a sign of more to come.
"We expect further weakening of the market in the months ahead: lower turnover, rising days taken to sell and flat prices."