House sales high, prices static

The Real Estate Institute reports 8,036 homes changed hands in August, up from 7,795 in July – that was a record number of sales for the month of July too. August’s sales compare with 6,976 sold in August last year and 5,489 sold in August 2000.

Price-wise, there wasn’t too much to worry the Reserve Bank. The median house price was unchanged from July at $185,000 and was from April’s record $189,000.

"While demand for good properties remains strong, and many areas are reporting a shortage of listings, buyers and sellers are being realistic about housing prices," says newly appointed institute president Graeme Woodley.

Stability in the mortgage market, confidence in property as an investment and continuing positive net migration are all underpinning the residential property market he says.

In mid-August, the Reserve Bank left its Official Cash Rate unchanged at 5.75% after raising it from 4.75% since the beginning of the year.

The latest figures show activity rose in six of the 11 regions in August compared with July and in eight of the regions compared with August last year – Wellington activity levels were unchanged while the number of homes sold in Northland and Manawatu/Wanganui dropped.

The median house price rose in five of the regions in August compared with July and in eight of the regions compared with August last year. The Wellington median price was unchanged at $200,000 compared with August last year while the median price in Otago fell slightly and in Southland dropped from $95,000 to $77,000.

In the key Auckland market, the median house price rose from $259,000 in July to $264,000 in August and was up from $240,000 in August last year. The number of Auckland houses sold rose slightly from 2,867 in July to 2,873 in August and was up from 2,458 in August last year.