Sales and property prices down in new zealand

Wellington, New Zealand Photo: Keno McDonnell

Data from the Real Estate Institute of New Zealand shows that 4,719 properties were sold in January 2014, 4.3 per cent lower than January 2014, while prices slipped from December's record high of $402,000 to $25,000.

The national median price of $402,000 was an increase of $32,000 compared to January 2013, though, or 8.6 per cent.

Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan says: “There are a number of factors in play in the market in January, including seasonal factors and the ongoing impact of restrictions on high loan to value lending. As a result it is difficult to get an entirely clear steer on the direction of the market this month.“

“Volumes are still strong relative to the last five years, but are down 4.3 per cent overall on the same time last year. The softer volume result continues a pattern that began in November and continued in December; however, market feedback suggests that first homebuyers may be tentatively returning – with some assistance - to certain markets. This is by no means a consistent message, with views decidedly mixed outside of the main cities.”

“The national median price is up $32,000 or 8.6 per cent on the same time last year, but down $25,000 or just under 6 per cent from December 2013. This does suggest a softening price trend, which would come as a relief to many commentators. However January data is often impacted by the seasonal mix of properties, with fewer high value properties coming to market in this month. The Stratified House Price Index, which adjusts for some of the mix issues, is down by 2.2 per cent compared with December 2013."

“Also of interest in the month is the small but steadily increasing number of properties coming to market in Christchurch being sold on an “as is, where is” basis – that is, damaged and unrepaired. Prices achieved can range from full value for lightly damaged properties to land value less demolition costs for severely damaged dwellings. We will be taking a close interest in this trend as it develops.”