The real estate market held firm in July with prices and turnover tracking June figures almost exactly, says the Real Estate Institute of New Zealand (REINZ).
The Auckland, Taranaki and Southland real estate markets are showing positive signs but Central Otago Lakes' median house price has dropped by more than
a quarter, according to the institute.
For the first time, the data released today is accompanied by a new monthly housing price index, a new stratified housing price measure which gives an average of sale prices for common groups.
The REINZ Monthly Housing Price Index increased by 1 per cent to 3134.1 in July.
In the three months to July, housing prices increased by 2.2 per cent. Compared with 12 months earlier, the index increased by 0.9 per cent, the first annual increase since March 2008. Housing prices were 7.3 per cent below their November 2007 peak.
Institute president Mike Elford says the addition of the new statistics would give an even more accurate analysis of house price movements at different price brackets and therefore a more complete overall picture.
Sales data showed July's median house price of $340,000 is the same as June 2009 and also identical to July 2008.
It was just marginally down on the $345,000 in July 2007 and well up on the median prices for the years 2000 through to 2006, which ranged between medians of $170,000 to $312,500.
Volumes have been similar with 6014 properties sold in nationally in July 2009 compared with 6040 in June. The figure was well up on the 4489 sold in July 2008.
"The market has certainly recovered well from the lows of mid-2008," said Elford. "You wouldn't call it brilliant, but there are positive signs such as more listing stock."
Another positive sign was the length of time to sell a property, he said.
In July 2009 the median number of days to sell a house was 37, compared with 58 days in the same period in 2008. The figure for June 2008 was 41.
ASB Bank economist Jane Turner said the 5 per cent hike in house sales was "a touch stronger than we had expected."
Despite the good July numbers, the overall level of demand "remains subdued with house sales below average levels and per-capita house sales still at very low levels."
The QV quarterly house price index remains the most accurate guide on house prices, although the REINZ figures will "provide an excellent early lead," said Turner.
"July's data confirms the recent recovery in the housing market remains firm and that declines in house prices have come to an end," said Turner.
"Nonetheless, the absolute level of demand remains below average. While population growth and low interest rates are supportive for the housing market, rising unemployment and ongoing economic uncertainty continues to dampen the degree of optimism."
Houses were still relatively expensive compared to incomes and rents, and future house price increases were likely to be moderate - particularly compared to the previous boom, she said.
-NZPA/ NZ HERALD STAFF