KEY POINTS:
Property values are continuing their downward journey, with new August real estate figures showing a nearly 6 per cent fall in national median prices.
The number of properties sold in August was the lowest monthly total in 26 years and sales in the $1 million plus bracket nearly
halved from a year ago, according to the Real Estate Institute of New Zealand.
The institute detected a recovery in the property market in July, but its August report today reveals that shift has been well and truly reversed.
The national median selling price was $330,000 in August, which is 5.71 per cent lower than a year ago.
"It looks as if the leading economists are on the money with predictions of a 5 to 10 per cent decrease in the market, followed by a period of stability at the end of this year or early in 2009," president Murray Cleland said.
Auckland was one of just three out of 12 regions to record increased medians in the latest statistics.
Cleland said this was surprising given the exact opposite was the case in Auckland in July.
The Auckland median price recovery was significant because it was driven by increased medians in the North Shore, up from $483,500 in July to $508,000, and Waitakere City up from $355,000 to $374,000. Auckland City itself was up from $443,000 to $467,500 which in turn drove the Metropolitan Auckland median up from $425,000 to $430,000.
There were 4220 sales nationally last month, the lowest monthly total in the 26 years the institute been compiling figures. Sales over $1 million are almost half of those a year ago, down from 202 in August 2007 to 103 in the latest period.
The median price in the Central Otago Lakes area fell to $465,000 in August from $565,000 in July. Sixty houses sold in the region in August, down from 69 in July and 96 in August last year. The median price a year ago was $474,500.
There was now a lot riding on the spring selling season and on the interest rate decision by the Reserve Bank of New Zealand tomorrow.
Houses sold in August had been on the market an average 55 days, down from 58 in July.
Cleland said prices were volatile in areas with low sales levels.
The Gisborne median fell to $212,000 in July on 31 sales and was $290,000 in August on 29 sales.
In percentage annual terms, Northland is now 10.23 per cent lower than a year ago and Auckland is down by 5.88 per cent.
Waikato and Bay of Plenty is down 2.76 per cent, while Hawke's Bay is down 3.63 per cent.
Manawatu and Wanganui is up 7.44 per cent, but Taranaki is following the national trend, down 2.91 per cent.
Wellington is down 1.58 per cent, Nelson Marlborough is down 1.79 per cent but Canterbury and Westland shows one of the larger falls, down 6.45 per cent over the year.
Central Otago Lakes is off 2 per cent and Otago down 3.36 per cent while Southland is still up 7.95 per cent.
Sales of properties worth $400,000 to $599,999 are down to 950 compared with 1549 a year ago, and sales of properties worth $600,000 to $999,999 are down from 736 in August 2007 to 421 in the latest period.
- NZPA