Property sales picking up

Residential property sales volumes are up in the Tauranga, Mount Maunganui and Papamoa, and Western Bay of Plenty country areas.

The latest statistics from the Real Estate Institute of New Zealand show for the three month period ending August the number of sales in these areas are at five year highs.

In Tauranga there were 110 sales at a median sale price of $356,500.

This is up on 97 sales in the July period this year and up on the 100 sales made in the August 2007 period.

In the Mount Maunganui and Papamoa area there were 80 sales made in the August period this year at a median sales price of $387,500.

This is up on the 63 sales made in the July period and up on the August 2010 period when there were 47 sales made and on the August 2007 period when 61 sales were made.

In the Western Bay of Plenty country area there were 56 sales made in the August period with a median sale price of $354,250.

This is up on the 51 sales made in the July period this year and just above the August 2007 period when 55 sales were made.

This increase in sales in the Western Bay of Plenty is reflective of the national trend.

The REINZ data shows 5192 unconditional sales were made nationally, up 905 sales (+21.1 per cent) compared to the August period last year. 

The volume of sales was 264 sales higher than the July 2011 figures; a slightly stronger lift than the seasonal pattern expected at this time of year. 

The national median house price rose by $10,000 to $355,000 (+2.9 per cent) in August compared to July 2011 and just a $5000 (+1.4 per cent) increase compared with August 2010.

The Waikato and Bay of Plenty combined region recorded the strongest rise in volumes compared to August 2010 with an increase of 33.2 per cent.  Nelson and Marlborough had the next strongest rise, up 29 per cent, followed by Auckland, up 27.4 per cent and Northland up 25 per cent.

Only one region, Taranaki, saw a drop in sales volume compared to August last year.

REINZ chief executive Helen O’Sullivan says the increase in sales is positive for the property market as its stagnancy has been problematic.

“The tight supply of listings across the country is the key feature of the market currently,” says Helen.

“With the arrival of spring listings are showing signs of increase, but the impact of the Rugby World Cup and the general election soon after makes it difficult to predict how the market will respond.

“The improvement in volumes over the past few months is a positive sign, however, prices remain essentially steady. 

“One interesting aspect of the market is how well informed buyers appear to be and how focused they are on buying at what they see as their level.”