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  1. #1
    Join Date
    May 2004
    Location
    Bay Of Plenty, NZ
    Posts
    3,604

    Default House prices hit low as prices snag

    12/02/2011

    house prices are still falling, down 2.6 percent last month, and economists estimate that the volumes of sales dropped 8 percent to a record low.

    January is always a quiet month for house sales because of summer holidays, but economists said the figures showed the market was "very weak".

    It was still a buyers' market and prices could remain soft for months, some economists said, reinforcing expectations that official interest rates would remain low till september.

    Rental property shortages are partiy to blame for soggy house sales last month and the lowest monthly number of new listings so far, according to the real estate institute, reinz.

    The institute's monthly housing price index was also down 2.6 percent in january compared with 12 months ago.

    The national median price last month was $340,000, $10,000 lower than january 2010.

    house prices are now 7.7 percent below the market's november 2007 peak.
    sales volumes fell to 3252, below the previous january low of 3666 a year earlier. New listings fell to a record low of 8300. Six years ago, during the property boom, more than 8000 homes were sold each month.

    According to the index, wellington house prices fell 3.3 percent on a year ago. The median price for wellington district slipped back to $370,000.

    Reinz chief executive helen sullivan said though january was a traditionally subdued month, low interest rates and rental shortages in some urban areas such as auckland, meant "homeowners and investors alike are under no pressure to sell".

    However, the low level of building consents should in turn "provide support for prices over the coming 12 months, and perhaps an opportunity for the would-be investor".
    Patience is a virtue.

  2. #2
    Join Date
    Jun 2007
    Location
    Wellington
    Posts
    1,237

    Default

    My (anecdotal Wellington) take is that poor stock took a hammering, and this is still unwinding in the figures, but desirable 4 bed 2 bath homes in nice leafy suburbs are tracking up at about inflation.


  3. #3
    Join Date
    May 2004
    Location
    Bay Of Plenty, NZ
    Posts
    3,604

    Default

    Porirua
    Over-priced on listing
    Needing a "light" reno
    Sitting on market for 6-12 months

    Selling $40-70K below RV.

    Kapiti -
    IMO, hasn't been affected as much as Porirua. Again, properties that are presented and priced well, sell quickly. Not presented or priced well, sitting for up to four(?) months, selling $10-20K below GV.
    Patience is a virtue.

  4. #4
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,757

    Default

    What on earth is this goobledegook code for?
    Rental property shortages are partly to
    blame for soggy house sales last month
    and the lowest monthly number of new
    listings so far, according to the REINZ.
    Anything to do with leaky buildings?
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  5. #5
    Join Date
    Oct 2007
    Posts
    362

    Default

    Yep
    seemed like garbage to me. You would think that if there is rental demand there would be LOTS of people buying rentals rather than 'soggy' sales--- their reasoning is --well soggy.

  6. #6

    Default

    Quote Originally Posted by motivated View Post
    Yep
    seemed like garbage to me. You would think that if there is rental demand there would be LOTS of people buying rentals rather than 'soggy' sales--- their reasoning is --well soggy.
    Turnover at record low.
    A market requires a seller. shortage of listings.
    Simple really.

  7. #7
    Join Date
    Oct 2007
    Posts
    362

    Default

    No shortage of rentals for sale where i live--and the rental market here is good so vendors not putting them on the market is NOT the reason they are not selling.

  8. #8
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,757

    Default

    And your locality is . . . . ?
    .
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


 

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