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Bayleys Research
VOLUMES CONTINUE TO SUFFERResidential values recorded an increase in March 2008 to $349,000 up 3.3% from the February median of $337,500, according to the March 2008 data released from the Real Estate Institute of New Zealand (REINZ). REINZ have attributed the increase in median price to reduced confidence in the lower end of the market, particularly with transaction numbers below $400,000 having dropped significantly. While the values have increased, sales volumes have reached a new low with just 5,129 transactions recorded in February and nearly half the volume of sales of last March. Sales activity is expected to remain at its current low level until interest rates ease and consumer confidence takes a turn for the better.
A recent series of regional residential reports by Bayleys Research show some consistent trends developing around New Zealand. In 2007 the reports show that values had increased across all region’s apart from Hawke’s Bay where values flattened. However, the rate of each regions growth is slow moving compared to historical data. The combination of high interest rates and a reduction in other key drivers such as immigration and market confidence have investors and home owners shying away from making purchases. This has seen sales volumes continue to drop in most centres surveyed apart from Nelson and Motueka. Sales volumes are currently low and median sale price trends are flat or falling, as expected in the current economic environment. This situation is expected to be maintained through most of 2008. The average days on market reading is another telling sign of a slowing market and Bayleys Research has more than half of the regions surveyed showing increases.
For More information on the latest regional residential reports visit www.bayleys.co.nz/research |
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