Housing market falters in September

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Both the number of housing sales and the median house price dipped significantly in September but the Real Estate Institute believes this is temporary.

Friday, October 19th 2001, 5:48PM

by Jenny Ruth

"There are a number of factors that influenced the market during September, not least of which was the school holidays and public concern regarding the events of 11 September," says vice-president Graeme Woodley.

"But none of this will have any long-term effect on the home-buying public," he says.

The housing market declines were despite the Reserve Bank cutting its official cash rate from 5.75% to 5.25% on 19 September.

The institute’s figures show floating rate mortgages have fallen from between 6.84% and 7.7% a month ago to between 6.34% and 7.2% currently.

Woodley says these interest rates are "extremely low by New Zealand standards" and should help stimulate the housing market. "As we come into summer, traditionally a busy season for real estate, we anticipate market activity will increase," he says.

The institute figures show the national median house price fell to $173,000 in September, the same level it was at in September last year, from $176,000 in August.

They show that the number of houses sold nationally fell from 6,976 worth $1.45 billion in August to 5,604 worth $1.17 billion in September but was higher than the 5,071 houses sold in September last year. Woodley says the year-on-year measure is often more important than the monthly comparisons.

On a regional basis, six of the 11 regions saw the September median price rise from August while it fell in the other five. Compared with September last year, the median price was higher in all but three of the 11 regions.

Compared with August, activity fell in all regions except Southland where the 217 houses sold in September just eclipsed the 216 sold in August. Compared with September last year, activity was higher in all 11 regions.

 

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE COMPARISONS FOR SEPTEMBER 2000-2001

REGION	SEPT 00	AUG 01	SEPT 01
Northland	140,000	147,500	135,000
Auckland	242,000	240,000	249,000
Waikato/BOP/Gisborne	154,000	161,000	158,000
Hawkes Bay	130,000	123,861	132,500
Manawatu/Wanganui	94,500	103,000	107,000
Taranaki	94,000	95,000	105,000
Wellington	190,500	200,000	185,000
Nelson/Marlborough	140,750	147,750	150,000
Canterbury/Westland	135,000	136,000	142,000
Otago	105,000	101,000	92,500
Southland	73,500	95,000	83,000
NZ Total	$173,000	176,000	173,000

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