Big growth in house market

John Miller · Posted: Sat Apr 24, 2004 10:34 pm Post subject: Big growth in house market

21.04.2004

The property market rebounded last month, with strong demand for blue-chip properties and continued low interest rates driving up prices and property sales, the Real Estate Institute says.

The industry group said yesterday that its members sold 11,371 houses last month, 14 per cent more than in February and 6 per cent ahead of the same month last year.

The national median price rose 4 per cent to $240,500 from $231,000 in February, and was 20 per cent higher than March 2003.

The institute's national president, Graeme Woodley, said the market had risen strongly following subdued conditions in January and February.

A nearly 3 per cent fall in the median house price in December was followed by a 0.5 per cent fall in January and a 1 per cent rise in February.

"These latest figures will come as a surprise to quite a few people, particularly since the anecdotal information is that the market has been quieter," Woodley said.

"They suggest that the market is again trading strongly."

The median price rise was partly driven by demand for higher-end properties, with the number of sales worth more than $600,000 up 20 per cent to 692 for the month, Woodley said.

Fears of rising mortgage rates had proved unfounded for the meantime.

The latest institute mortgage survey showed that floating rates were unchanged and fixed rates were falling.

The Reserve Bank has left its official cash rate, which influences banks' mortgage lending rates, at 5.25 per cent since January.

Most of the economists polled by Reuters expect the bank to leave the rate steady at its next review on April 29.

New Zealand's property market has been buoyed since late 2001 by the influence of a domestic economy growing at a brisk clip, low interest rates and strong population growth, but signs are emerging of a decline in conditions this year.

Prices in Auckland rose to $322,000 in March from $310,600 in February, and the number of houses changing hands rose significantly to 3881 from 3427 in February.

In Wellington, prices rose to $261,000 from $255,000, and house sales rose to 1207 from 1005.

Overall, nine out of the 11 regions recorded a higher median house price for the month, with the largest increase an 11 per cent rise in Nelson/Marlborough to $275,000.

Annually, the Otago region led the way with a 57 per cent increase in median house price, followed by Nelson/Marlborough's 21 per cent increase on March 2003.

The number of days to sell a property fell to 27 from 29 in February.

Median house prices

Location, February, March

Auckland, North Shore $379,000, $389,000

Auckland City $331,000, $358,000

Waitakere $250,000, $274,500

Manukau $295,000, $295,000

Hamilton $205,000, $200,000

Wellington $255,000, $261,000

Christchurch $220,000, $246,500

Dunedin $173,000, $180,000

Source: REINZ

http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=3561683&thesection=business&thesubsection=general

Woz · Posted: Mon Jul 12, 2004 8:41 pm Post subject:

Just wondered what the general view was on the property market in NZ?

I have heard reports that its overvalued and wondered what people thought on .

Didn't want to get involved with the market if its is at the top of a rise.

michelle · Posted: Tue Jul 13, 2004 7:22 pm Post subject:

Have heard about a 5% drop predicted for Auckland this year. This came from someone in Auckland, anybody out there heard similar??

Might wait a couple of months before doing anything, interest on the money in the bank might counteract any increase. Then again what's going to happen to the exchange rates ??

Will you be looking in Christchurch ?

Michelle

Macs Gold · Posted: Tue Jul 13, 2004 8:01 pm Post subject:

In the Press today the Westpac Bank were suggesting it might still move up 5% before the end of the year, but that a 5% fall would happen next year. They were of the view this is not a bubble ready to burst, but rather it is about reaching its peak and will be fairly flat for a few years.

Interestingly, the biggest factor in the slowdown is fewer immigrants. So, if you see thousands more potential immigrants registering on here and other forums, it probably is a good time to buy.

Personally, I would buy when you are ready, and not try to second guess what prices will do. I don't think the average immigrant can out predict everyone else (who will know the local market better than you). But it is important not to pay over the odds just because you may have a few more readies than the locals do.

michelle · Posted: Tue Jul 13, 2004 8:07 pm Post subject:

Ah so its next year, still who knows ???? they have been saying that prices are going to fall over here and they haven't yet.

Thanks for the inside view.

Michelle

Woz · Posted: Wed Jul 14, 2004 12:35 am Post subject:

Thanks for the info.

We will be looking in the Christchurch area and it sounds like its the north that has the bigest prob.

Guess it will be a case of jump in when ready to do so then, unless the market does the same as here in the UK which looks like its about to take a huge dive.