Housing market in full-blown recovery
The latest real estate sales figures confirm the housing market is in the midst of a full-blown recovery.
Tuesday, January 22nd 2002, 6:43PM
by Jenny Ruth
The number of homes sold in December jumped about 33% to 6,147 worth $1.33 billion compared with December last year. That’s the highest number sold in December since 1998. The number was down on the 7,881 worth $1.69 billion sold in November, reflecting the traditional slowing over the Christmas/New Year season.
As Real Estate Institute president Rex Hadley says, "People simply have too many commitments to seriously house hunt and realistically December is a two-week month."
He says the year-on-year increase in December follows a 36% increase in each of October and November on the same months a year earlier and adds up to a "stunning" fourth quarter for his industry.
There are also tentative signs than prices may again be on the rise, although that’s unlikely to disturb the Reserve Bank yet. The national median house price rose from $170,000 in December 2000 to $178,000 this December. That was also up on $176,200 in November.
A good part of the reason for the strong housing market is the five cuts in official interest rates the Reserve Bank made last year.
The institute’s figures show that activity in all of the 11 regions measured improved in December from a year earlier, although compared with November activity was down in all regions except Northland, Manawatu and Wanganui.
The median house price rose in all regions except Nelson/Marlborough compared with a year earlier. Compared with November, the median house price rose in six regions and fell in the other five.
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