Falling rates stimulate market
The Real Estate Institute says the April housing sales figures show falling mortgage interest rates are helping to stimulate the housing market.
Monday, May 21st 2001, 3:28PM
by Jenny Ruth
While the number of house sales dipped compared with March, they were up compared with April last year and the median price was higher than in either March or April last year.
"March is traditionally one of the most active months for real estate transactions and 2001 is no different. It was always unlikely that April would achieve a similar number of sales," says institute president Rex Hadley.
Sales nationally totalled 6,506 in April compared with 6,559 in March and just 5,238 in April 2000.
"Such a high level of improvement over last year’s sales volume bodes well for the residential housing market in 2001, and demonstrate the stimulating influence easing mortgage interest rates have had on the residential market," Hadley says.
Total sales rose from $1,394,271,191 in March to $1,423,745,699 in April. That compares with $1,106,697,099 in April 2000. The median sale price of $178,000 was $4,200 higher than in March and compares with $177,000 in April last year.
A year ago, many New Zealanders had lacked confidence in the country’s economic direction and had effectively sat on their hands, Hadley says.
"More recently, factors such as falling interest rates and improved employment figures have encouraged homebuyers, not only to re-enter the market, but also to increase their level of financial commitment to residential property."
The Reserve Bank has cut its official cash rate, from which other interest rates are set, three times this year from 6.5% to 5.75%. The unemployment rate has fallen to a 13-year low of 5.4%.
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- REINZ PROPERTY MARKET REPORT
- TOTAL DWELLINGS MEDIAN PRICE COMPARISONS FOR APRIL 1996-2001
REGION APR96
APR97
APR98
APR99
APR00
MAR01
APR01
Northland 113,000
130,000
141,000
152,250
157,000
146,500
150,000
Auckland 229,000
236,000
235,000
235,000
242,000
248,500
248,500
Waikato/BOP/Gisborne 130,000
141,750
145,500
153,000
157,000
160,000
165,000
Hawkes Bay 122,500
127,500
109,750
131,000
125,000
130,000
128,000
Manawatu/Wanganui 103,000
102,500
101,000
10,000
100,750
106,000
109,000
Taranaki 105,000
95,000
100,000
101,000
108,000
105,000
106,500
Wellington 142,000
150,000
156,150
175,000
190,000
190,000
195,000
Nelson/Marlborough 134,000
140,500
146,000
142,510
146,250
150,000
147,500
Canterbury/Westland 129,000
140,250
141,750
148,000
140,000
149,000
135,000
Otago 104,500
102,500
89,500
94,750
100,000
95,250
99,250
Southland 78,000
85,000
75,000
90,500
103,500
85,000
96,000
NZ Total $149,000
$162,500
$160,000
$170,000
$177,000
$173,800
$178,000
- REINZ PROPERTY MARKET REPORT
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