Sales volume slumps along coastal strip

The long-suffering residential property market along the city's coastal strip had a sharp fall last month - as sales activity tested historical lows.
The latest New Zealand Real Estate Institute (REINZ) figures show that the number of sales at Mount Maunganui and Papamoa fell from 70 in April to 57 last month.
This matched the 52 sales in February, and headed towards the slow months of 40 in January this year and in 2009 - the lowest monthly volumes for 10 years.
The housing market has now been in the doldrums on the coastal strip for nearly three years, with very little buying in the $800,000 plus price range - though new building has started up again in Papamoa.
A good market would see about 100 sales a month in this part of the city.
The market has been kept alive by buying in the $400,000 and under price bracket. The median selling price for Mount and Papamoa in May slipped to $390,000, from $412,500 in April.
Across the harbour, activity was steady with 97 sales in May - the same volume as in April.
With very few new listings coming on to the market, the pressure is building on prices and the median selling price for the Tauranga suburbs fell from $370,000 in April to $340,000 last month.
Nationally, the median eased in May to $350,000, from $356,000 in April, but was still 3.7 per cent ahead of a year earlier, said REINZ president, Peter McDonald.
The 5206 residential property sales nationwide last month were only one fewer than in April, and the median number of days to sell rose to 43 from 40.
Mr McDonald said property investors were talking about returning to the market to cater for the growing demand for domestic rentals.
REINZ's monthly housing price index fell by 1.4 per cent in May, with prices 5.1 per cent below their peak in November 2007.
The index, which basically is an average of sale prices for common groups, rose 0.7 per cent in the three months to May, and compared to a year earlier is up 2.3 per cent.
The latest REINZ statistics follow QV figures last week that showed residential property prices 4.1 per cent below the market peak of late 2007, having been 3.9 per cent below the peak a month earlier.
QV indices showed values were 5.6 per cent above the same time last year, the first decline in the annual change since March 2009, having fallen back from the 6.1 per cent reported for April.
A newsletter from real estate company Harcourts said its figures for May showed a continuation of market conditions experienced since early this year - "considerable inaction within the property market".
But with the Government having now delivered its Budget, and the changes not as dramatic as predicted by some, the company expected to see sales levels rise to more normal levels in coming months, Harcourts said.
 Watch out for the Bay of Plenty Times Property Report next Thursday.