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11-11-2011

REINZ Regional Commentaries – October 2011

Landlords.co.nz

REINZ rounds up the sales numbers, open home volumes, prices and days to sell data from across the country.

Auckland Region

The Auckland region recorded a slightly larger drop in sales volumes than the national figures for October compared to September. The number of sales was up by more than 1/3 compared to October last year, although October 2010 recorded the 6th lowest number of sales for any month since January 1992.
 
Volumes at open homes were reported as being positive during the month, suggesting that the Rugby World Cup had little impact on buyer activity. Broader concerns about European turmoil, the direction of interest rates and the economy are thought likely to have had greater influence.
 
The wider Auckland median eased by 2.1% from September driven by drops in Auckland and Manukau. Other areas of the region were stable, or in the case of Waitakere, showed a modest increase.
 
The number of days to sell across the Auckland region eased by one day to 33 days compared to September, although there has been an improvement of three days compared to October 2010.

Wellington

The Wellington region recorded the second strongest lift in sales volumes compared to September with all sub?markets apart from Hutt Valley showing a lift in sales volumes. Volumes were also up nearly 12% compared to October 2010 with only two sub?markets showing a fall in volumes.
 
The median price rose by $12,500 across the region compared to September, although there were some noticeable swings in a number of the sub?markets with Central Wellington’s median price dropping noticeably, while Western Wellington and Upper Hutt recorded solid increases. Compared to October 2010 the regional median price rose, but by less than $2,000.
 
The number of days to sell improved by five days to 33 days compared to September and has
 
improved by seven days compared to October 2010.
 
Anecdotal evidence suggests that activity in the market for October is consistent with what would be expected for a spring market, with well priced properties attracting good interest and over priced properties languishing.

Northland

The Northland region recorded a drop in sales after a very strong performance in September with all sub?markets registering a fall. Northland was the only region to record a drop in sales compared to October 2010. Prices on the other hand firmed slightly in October compared to September, although recorded the 2nd largest fall compared to October 2010.
 
The number of days to sell for Northland improved a further six days to 50 days in October compared to September and by 13 days compared to October 2010. This is the shortest number of days to sell for the region since December 2009.

Waikato/Bay of Plenty/Gisborne

The Waikato/Bay Of Plenty region recorded something of a mixed bag with some sub?markets showing strong increases in volume compared to September with others recording noticeable falls.
 
Mount Maunganui/Papamoa, Gisborne City and Hamilton city all recorded lifts in sales, while Tauranga, Rotorua and Eastern BOP Country all recorded noticeable falls. Compared to October 2010 volumes were up in most sub?markets, although there was one less house sold in Rotorua in October 2011 compared to October 2010.
 
Prices across the region in contract were firmer than the national medians with Tauranga and Taupo recording lifts in prices compared to both September and October 2010, although prices in Rotorua, Gisborne City and Eastern BOP Country were generally softer.
 
Across the region the number of days to sell improved by five days to 48 days compared to September, and has improved by 13 days compared to October 2010.

Hawkes Bay

The volume of sales in the Hawkes Bay region eased for a third month in a row in October with the number of sales falling to 155; this compares with 190 sales in July. The volume is up 23% compared to October 2010.
 
Prices have also eased compared to September across the region and are down almost 10% compared to October 2010. The number of days to sell has also increased by nine days to 49 compared to September and by 12 days compared to October 2010.
 
Anecdotal evidence suggests that agents are busy with good open home attendances and new listings, although buyers seem reluctant to rush to purchase.

Manawatu/Wanganui

The Manawatu/Wanganui region had a mixed month in terms of volumes with noticeable falls recorded in Palmerston North City and Levin being offset by larger rises in Feilding and Wanganui City.
 
Across the region volumes dropped by 2% compared to September. The comparison with October 2010 shows an almost 60% increase, although caution is advised given that October 2010 recorded the second lowest number of sales for the region since January 1992.
 
Prices across the region eased slightly (down $1,750), although there were increases in Palmerston North City, Feilding and Levin. Compared to October 2010, however, prices have generally eased back. The number of days to sell across the region improved by four days to 49 days compared to September and by two days compared to October 2010.
 
Anecdotal evidence suggests that while buyers are active in the market, open home attendances are good, the number of listings remains a concern and buyers remain cautious and price sensitive.

Taranaki

After a weak sales period through the winter the property market in Taranaki has experienced something of a spring revival with sales volumes rising more than 15% compared to September and being up almost 20% compared to October 2010. The lift in volumes was most noticeable in New Plymouth City and Taranaki Country, with a drop in sales in Hawera.
 
Prices have also firmed noticeably with Taranaki recording the 2nd strongest lift in prices compared to September, although the lift compared to October 2010 is slightly lower than the national figure. The number of days to sell also improved markedly with a 37 day improvement to 42 days compared to September and by 11 days compared to October 2010
Nelson/Marlborough
 
The Nelson/Marlborough region saw one more sale in October compared to September, although the number of sales was up by more than 1/3 compared to October 2010. The median price rose by $17,500 in October compared to September and increased by $23,500 compared to October 2010.
 
The only submarket where prices eased was Nelson City.
 
The number of days to sell improved by 13 days to 33 days compared to September and by five days compared to October 2010. Anecdotal evidence suggests that agencies are busy with plenty of buyer enquiry, however, properties that are perceived to be over prices are seeing very little interest.

Canterbury/Westland

The Canterbury/Westland region recorded at 9.5% drop in sales volume in October compared to September, the 3rd largest drop across the country. Volumes were down in most markets, with only Timaru and North Canterbury showing signs of strength. Compared to October 2010 volumes were up just over 30%, with all sub?markets apart from West Coast showing noticeable increases.
 
The median price across the region rose by $17,500 in October compared to September, although the median price eased back in Christchurch City. The largest price increases were in North Canterbury and West Coast. Compared to October 2010 Rangiora has seen the median price increase by almost 1/3, although the median price in Christchurch City has only increased by 2%.
 
The number of days to sell improved by six days to 32 days compared to September and by 10 days compared to October 2010.

Central Otago Lakes

The Central Otago Lakes region recorded a noticeable drop in sales volumes in October compared to September and follows on from a decline recorded in September, although volumes are up in all submarkets compared to October 2010.
 
The median price across the region has also risen noticeably in October compared to September, with most of the increase occurring in Central. This follows a decline in the median price in September.
 
The median price has increased by the same factor – 9.1% ? when compared to October 2010.
 
The number of days to sell improved by 22 days to 57 days compared to September and by seven days compared to October 2010.

Otago

The Otago region recorded a 4.2% drop in sales volume in October compared to September, with volumes down across all sub?markets. Volumes compared to October 2010 show an increase of close to 30%, however, as with a number of other regions this reflects a relatively weak sales performance in October 2010.
 
The median price across the region improved by $2,000 compared to September, but has fallen back by $13,000 compared to October 2010. Anecdotal evidence suggests that there is solid buyer interest at levels below $250,000, but demand declines above this price point. As with other regions, properties that meet buyer expectations in terms of prices are moving relatively quickly, while poorly priced properties are not.
 
The number of days to sell improved by six days to 30 days compared to September and by 12 days compared to October 2010. Otago had the shortest number of days to sell for all regions in October.

Southland

The Southland region recorded a 2.4% increase in sales volume in October compared to September with most of that increase taking place outside the key sub?markets of Invercargill and Gore.
 
Compared to October 2010 sales volumes increased by 44%, although this again reflects the weak October 2010 result. The previous weakest result for the Southland region occurred in May 2000.
 
The big story for the Southland region is the almost 20% lift in the median price compared to September, making Southland the strongest performing region, although it should be noted that this follows a 13% decline in the median price in September. Compared to October 2010 the median price is also up 20%, making this the largest annual price increase since February 2008.
 
The number of days to sell improved by five days to 31 days compared to September, and improved by three days compared to October 2010.

Tags: reinz

Source: Landlords.co.nz

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