Housing market buoyant in January

The latest Real Estate Institute figures show there were 8,159 homes sold in the month, up from 7,766 in December and 6,771 in January 2002. While that was below the record 9,932 homes sold in November, January is traditionally a slow month.

The national median price rose to $193,400 from $192,000 and compares with $175,000 in January 2002, a 10.5% increase. That was also below November’s record $195,000.

Institute president Graeme Woodley says the figures show a much more liquid market than in the last two years which is supported by "encouraging growth, stable interest rates, strong consumer confidence and positive migration trends."

The Reserve Bank’s Official Cash Rate, from which floating mortgage rates are set, has stood at 5.75% since July last year and economists don’t expect it will change before June this year.

"It is interesting to look back two and three years to January 2001 sales of 4,741 and January 2000 sales of 5,214 in order to realise how much stronger this market is now after a couple of pretty depressed years," Woodley says.

Auckland sales were particularly strong at 2,832 sales in January compared with 2,511 in December and 2,288 in January last year.

But Woodley notes price rises across the main cities are "surprisingly uniform" and tend to negate suggestions that Auckland is driving the rise in the national median price.

While the median Auckland price rose 11.02% in the year, Wellington wasn’t far behind with 9.94% growth, the Canterbury/Westland median price was up 11.42% and Otago’s was up 12.24%.

Compared with December, the median price rose in five of the country’s 11 regions and fell in five while Otago’s was unchanged. Prices in all regions were up compared with January last year.

The number of sales rose in seven of the regions compared with December and fell in the other four, but sales activity in all 11 regions was up on January last year.

Total dwellings median price comparisons for January 2000 - 2003