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Bayleys Research


AUGUST 07 BULLETIN

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REINZ RESIDENTIAL UPDATE

The median sale price for residential dwellings in New Zealand dropped slightly more than half a percent over the month of June as the market adjusted to an economy affected by tightening monetary policy. New Zealand’s median price for dwellings was $347,500 for June 2007, which is marginally lower than the previous month’s median of $350,000 according to figures from the Real Estate Institute of New Zealand (REINZ). The Reserve Bank of New Zealand (RBNZ) Governor Allan Bollard should be pleased with this result as in April he identified the housing market as the number one driver of inflation, resulting in four official cash rate (OCR) increases this calendar year, bringing it to 8.25 percent.

The number of transactions reported for the month of June is down 11 percent on the sales reported for the same month in previous years. However, due to REINZ bringing forward the reporting date for sales, the estimated reduction in sales for June is 8 percent. Therefore, the estimated net reduction in sales for June is 3 percent when compared with June 2006.

 

 

Historically, the number of transactions per month drops off from May to June as we come in to winter. The market then traditionally experiences a resurgence of sales activity around November and into summer.

As we have become accustomed to witnessing, almost all regions throughout New Zealand have experienced double-figure growth in median sale price over the last two years. The exception is the highly volatile Central Otago Lakes region, which has experienced a modest 6.3 percent rate of growth.

The region which has experienced the highest rate of growth over the last two June years is Manawatu/Wanganui, where the median sale price for dwellings increased 49.2 percent from $166,250 bringing the current median to $248,000.

 

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