Further signs of easing: REINZ

More signs of a cooling housing market have been revealed in the latest Real Estate Institute statistics.

Tuesday, March 11th 2014, 12:00AM

by The Landlord

The data shows the 6125 homes sold in February was 7.6% down on the same month last year.

It was up almost 30% on January but that was still less of an increase than would normally be reported between January and February.

The national median price of $415,000 was an increase of $33,000 or 8.6% compared to February 2013, and an increase of $13,000 or 3.2% from January. Waikato/Bay of Plenty, Hawkes Bay and Canterbury/Westland all recorded new high median prices of $350,000, $305,000 and $399,000, respectively.

Auckland’s house median price increased 10.7% from February 2013 to $592,000.

REINZ chief executive Helen O’Sullivan said: “The results for February show further evidence that the national sales volume trend is easing, with only two of 12 regions showing an increase in sales volumes compared to February 2013.”

But she said there were signs that first-home buyers were returning to some markets.

“This is by no means a consistent message, with views decidedly mixed across the country; some regions are reporting increasing interest from first home buyers, while others report little in the way of activity.”

The increase in the median house price might be a sign of more activity in the higher-price brackets, she said.

“Despite the total number of sales being down 7.6% compared to February last year, the number of sales in the $600,000 to $1 million price bracket is up 9.2%. This may indicate that while first-home buyers are mostly sitting on the sidelines, the focus on the market has moved to higher price ranges, with a subsequent upward influence on the median price.”

Just two regions recorded increases in sales volume compared to February last year. Central Otago Lakes recorded the largest increase of 26.4%, followed by Northland with 11.5%.

While the total number of sales was down 7.6% compared to February 2013, the number of sales below $400,000 fell by 17.7%. This follows a fall in sales below $400,000 of 15.6% between January 2014 and January 2013.

Nationally there were 1065 dwellings sold by auction in February representing 17.4% of all sales and a reduction of 173 on the number of dwellings sold by auction in February 2013.

Transactions in Auckland again dominated the auction market in January, representing 64.2% of the national total of auction sales.

« House prices cooling: QV

English: Supply the issue »

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