Midwinter chill on house prices

Midwinter chills seem to have hit the housing market, but that could mean a glimmer of hope for desperate buyers, with half of New Zealand experiencing a drop in house prices last month.

Tuesday, August 23rd 2005, 7:50AM

by The Landlord

Real Estate Institute figures show July's median house prices dropped by $3000 to $363,500 in Auckland, $4750 to $295,250 in Wellington and $1500 to $348,750 in central Christchurch. The overall median price dropped from $284,500 in June to $280,000 last month. But in Wellington's western suburbs median house prices reached $455,000 in July, making the area New Zealand's most expensive.

Real Estate Institute national president Howard Morley said the slowdown in prices was usual at this time of year when a midwinter lull hit sales.

Despite the drop in the main centres, some regions continued to show good growth, he said.

July's star performer was Hawke's Bay, which made up some ground lost in June, with the median price climbing $13,500 to $250,000.

Southland had the second-largest price rise last month, up $10,500 to $138,500, followed by Nelson/Marlborough up $9000 to $273,500.

June's standout performer, Queenstown, eased back a huge $64,500 in July.

In June, Queenstown became New Zealand's most expensive suburb when it knocked Auckland's North Shore and Mt Maunganui off the top slots with a median price of $497,000.

Central Wellington median house prices are continuing to tumble, falling from $372,500 in May to $360,000 in June and $348,750 in July.

LJ Hooker regional manager Steve Dyhrberg said the figures were to be expected in winter when buyers were usually selling because they had to, rather than to cash in on high prices.

But the rising figures for Wellington's outer suburbs showed the high demand among first-home buyers and those with young families who were looking for better value.

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