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DECEMBER 07 AND JANUARY 08 BULLETIN

Sales Volume Bounce Back

The slowdown in sales volume experienced since May 2007 has been halted as a bounce back in the number of sales recorded in October 2007 shows an increase of nearly one thousand to 6,854, according to the latest data from the Real Estate Institute of New Zealand (REINZ). However, despite the increase, sales volumes are approximately 2,000 below October 2006 figures.

The median sale price for residential dwellings in New Zealand eased slightly to its August 2007 price of $350,000, down from $351,500 recorded in September. The lack of sales experienced across a majority of the regions throughout New Zealand has been picked as the reason for the static median sale prices recorded.

Closer analysis into the median sale price movements shows that while prices have been relatively static over the last few months, there are a number of regions experiencing solid increases over the last two years.

This is exemplified by Southland, which continues to perform exceptionally well, with a median sale price increase from October 2005 to October 2007 of 56% to $186,000. Southland recorded the largest median sale price increase over the last two years with renewed interest in the area occurring as a result of the lower priced property relative to other regions.

The large movement in median sale price renowned in the Central Otago Lakes was evident yet again in the latest figures from REINZ, recording the next highest increase in median sale price in October 2007 when compared to the same time two years ago. The median sale price increased by just over 30% to reach $545,000 in October 2007 compared to $417,000 in October 2005.