House prices rise in June

House sales by auction in the Bay of Plenty and Waikato regions accounted for 10.5 per cent of the national total number of homes being sold in year ending June 30, 2012.

Eves Realty Cameron Road branch manager Craig Hilton says the market has definitely improved in 2012.

House prices in New Zealand have reached new median highs. For the full property report click here: Property_Market_Report.pdf

“We would certainly go along with reports of an improved real estate market,” says Craig.

“Realistically the market turned just before Christmas. We have noticed a lift in activity, there’s definitely more houses coming onto the market.

“The prices have become more solid. We’ve moved away from a buyers or sellers’ market and it’s more neutral now. Maybe there is a little more pressure right now on buyers, but that may be a reflection of the season as people hold off listing until the spring.”

Craig says the most popular properties in the Bay of Plenty are homes between $250,000 and $450,000, although there is movement in the executive home market too, in houses above $450,000.   

Data from the Real Estate Institute of New Zealand (REINZ) shows there were 6135 unconditional sales in June, an increase of 906 sales compared with the same time last year and a decline of 14.5 per cent compared to May.

On a seasonally adjusted basis the level of sales in June was about even with May indicating that the change is in line with the seasonal pattern expected at this time of year. 

The national median house price rose by $3000 to $372,000, a new record high, rising $2000 above the previous high set in March this year.  The national median house price is up 3.3 per cent compared to June last year, with Auckland maintaining the $500,000 record median set last month. 

Almost all regions recorded increases in sales volume compared to June last year, with Canterbury/Westland recording an increase of almost 56 per cent followed by Northland with 39.1 per cent and Hawkes Bay with 25.6 per cent. 

Auckland’s sales volume increase over June 2011 was 15.7 per cent. Only Taranaki recorded a fall in sales volume compared to June last year. 

For the month of June, Central Otago Lakes recorded the highest lift in prices for the month with an increase of 11.5 per cent, followed by Northland with 10 per cent, and Wellington with 6.9 per cent. 

Compared to June 2011, Taranaki recorded the highest lift in prices with an increase of 11.3 per cent, followed by Auckland with 8.5 per cent and Canterbury/Westland with 8.3 per cent.  The REINZ Stratified House Price Index, which adjusts for some of the variations in mix that can impact on the median price, is 5.3 per cent higher than June 2011 and is now also at a new record high. 

The House Price Indices for Auckland and Christchurch are also at new record highs in June.

“Keen buyer interest in Auckland and Christchurch – which together make up about half of national activity – drove the New Zealand real estate market to new highs in June and a new record median price,” said REINZ chief executive Helen O’Sullivan. 

“The overall pattern for the rest of New Zealand shows improvement in sales volumes, with prices on the whole steady rather than up. The constraint across the country appears to be shortage of properties available to meet buyer demand. This is most acute in Auckland, where new home building is still sluggish, and in Christchurch where the earthquake recovery is slowly getting under way.”

Helen cautions that the apparent strength was still far from reaching the boom years of the mid to late nineties.

“Buyers and sellers lost confidence during the global financial crisis and in that context the current the market should be seen as recovering rather than ‘booming’.”

Across New Zealand the total value of residential sales, including sections was $2.81 billion in June, compared to $3.30 billion in May, and $2.26 billion in June 2011.  For the 12 months ended June 2012 the total value of residential sales was $30.10 billion.