The New Zealand housing market continued to rebound in July, reflected in the much shorter time houses are taking to sell.
The latest Mike Pero Mortgages-Infometrics Property Cycle Indicator (PCI) climbed to a positive 5.95 in July, from 3.98 a month earlier.
The indicator is a sensitive measure of the housing market and includes changes in the number of houses sold, changes in price and the time taken for houses to sell.
On average, houses took an average 37 days to sell in July, a whopping 21 days fewer than a year earlier, and the biggest year-on-year improvement since records began in 1991.
House sales volumes held steady around 6,000 from a month earlier, and were up 34% from July last year.
The national median house price also held steady at $340,000 in July, unchanged from a year earlier for the second month in a row. Traditionally, house prices are the last variable to change direction, according to the indicator report.
"Auckland and Wellington are showing strong signs of recovery with regional indicators of positive 6.94 and 6.59 respectively," says Mike Pero Mortgages chief Shaun Riley. "All other North Island regions also recorded a positive PCI for July."
In the South Island, Canterbury/Westland lead the recovery, with a regional PCI reading of 4.51. The only areas with a negative indicator in July were Central Otago Lakes and Southland, at negative 1.20 and negative 1.56 respectively.