Residential property market turnover at record low

Friday 11th February 2011 1 Comment

Turnover in the residential property market was at a record low in January, according to the Real Estate Institute of New Zealand (REINZ), which is none the less talking the property market up.

The national median price of residential properties sold in January was down 2.9 percent on a year ago, but still 4.6 percent above the 2009 figure.

From $352,000 in December 2010 the national median fell to $340,000 in January and was $10,000 below the January 2010 median of $350,000 but higher than the January 2009 median of $325,000.

"The traditionally subdued month of January was marked by the lowest-ever level of new listings coming to market and turnover fell to a new low below that of January 2010," REINZ chief executive Helen O'Sullivan said.

She said rental shortages in key urban areas such as Auckland and relatively low interest rates meant that home owners were holding onto property.

She said low levels of building consents suggested the stock of housing was not rising in the short-term.

"This in turn should provide support for prices over the coming 12 months, and perhaps an opportunity for would-be investors," she said.

The number of residential property sales declined to 3252 in January from 4397 in December 2010, and the previous low of 3666 sales recorded in January 2010.

Nationally the total value of residential sales, including sections, declined to $1.3 billion in January from $1.9 billion in December.

A breakdown showed 73 properties sold for $1 million plus, 365 sold for between $600,000 and $999,999, 786 for between $400,000 and $599,999 and 2028 for under $400,000.

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Comments from our readers

On 12 February 2011 at 2:29 pm Christopher said:

Most of this data is just blether without a breakdown of who is selling and why - eg "going to Australia" "upgrading to another house" "investor getting out of the market etc. Only then can we identify trends.