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Bayleys Research


OCTOBER 07 BULLETIN

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SPRING IS IN THE AIR

Recent data indicates that the anticipated slowdown in New Zealand’s residential market has set in, however, seasonal fluctuations in sales volumes and value levels are still anticipated. In the lead up to spring, prices tend to increase and this year is no exception. August has seen the national median sales price go back up to $350,000, the highest figure recorded to date and equal only to that recorded in May 2007. Eight of the twelve regions monitored by the Real Estate Institute of New Zealand (REINZ) recorded increases over the July figures with the exception of Hawkes Bay, Manawatu/Wanganui and Southland regions where values fell slightly and Canterbury/Westland region which remained at the same level.

 

 

While national sales values continue to climb, national sales volumes have fallen for the third successive month with a further drop to 6,394 from 6,660 recorded in July. This is the lowest number of sales recorded since January 2006. This decline in sales may simply be the effect of buyers and sellers stepping back from the market to gauge the level of impact caused by interest rate rises, according to REINZ.

The previous graph illustrates the median price versus the volume of sales and gives a clear indication that whilst sales volumes are easing off considerably the median price is still trending upwards.

The indicators show nearly all the regions performing well with double figure growth over the last two years, with the exception of the Hawkes Bay Region which lags behind with 8.4% growth. The table below sets out the year on year changes in median prices to August 2007. Over the past two years, the national median dwelling price has risen 21.1% with the Central Otago Lakes region leading the table with a 37.5% growth in year on year prices.

 

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