Sharechat Logo

NZ house sales fall in December, prices climb to new record

Monday 20th January 2014

Text too small?

The number of houses sold in New Zealand fell in December from a year earlier, continuing a trend, though the national median sale price rose to a new record, according to Real Estate Institute figures.

The number of houses sold fell 1.1 percent to 5,688 in December from the same month a year earlier, and were down 18 percent from November, a bigger drop than the average decline, REINZ said in a statement. The fall in sales volumes was led by Manawatu/Wanganui, where turnover dropped 37 percent, followed by a 27 percent slide in Southland and a 24 percent decline in Wellington.

The median sale price rose 0.5 percent to $427,000 in December, and was up an annual 9.8 percent. Prices in Auckland, which have been driving growth over the past year, fell 3.2 percent to $620,000, and were up 12 percent on the year.

"The softer trend in sales noted in November 2013 continued into December," chief executive Helen O'Sullivan said. "Further data is needed over the next few months to determine if this is a new (price) trend, or a short-term effect caused by a change in the pace of sales at lower price points given the increased complexity some buyers in these price points now have to navigate."

In October, the Reserve Bank imposed restrictions on lending with small deposits as bubbling housing markets in Auckland and Christchurch, which typically account for half the nation's property turnover, raised fears about the nation's financial stability if there was a sharp correction.

The stratified housing index, which looks to smooth out peaks and troughs, fell 1 percent in December, and was up 9.2 percent in the year.

The average number of days to sell a property slowed to 32 days from 31 days in November, and was unchanged from a year earlier.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar steady ahead of RBA speech, NZ rate decision
Govt plans to clamp down on unfair commercial practices well received
Loyalty scheme members not exclusive customers, fuel inquiry hears
S&P raises UDC Finance's credit rating to 'BBB+'
Company loses $270m claim over infant formula factory
ANZ ties $50m loan for Synlait to environment, social and governance measures
Tower to raise $47.2m at a discount to buy Youi, bolster balance sheet again
Summerset moving ahead with Australian expansion plans
24th September 2019 Morning Report
NZ dollar pares losses ahead of RBNZ rate decision

IRG See IRG research reports