Auckland's flat house sale market will not recover until spring, says REINZ

Auckland won't pick up till spring, REINZ says. Photo/ Chris Loufte

Auckland's flat house sale market will not recover until towards the end of this year, with vendors reluctant to list places due to flat conditions and no improvement picked until spring, the Real Estate Institute says.

Bindi Norwell, chief executive, expects few changes for many months until the weather warms up.

"Auckland's property market is always changing but it is likely that there won't be any major changes to the current patterns until spring. Vendors are reticent to list unless they have a genuine need to sell as buyers are slow to make decisions," she said.

REINZ has just released its monthly national sales data showing Auckland median prices dropped 0.6 per cent last month to $850,000, down from $855,000 in April last year.

The national median house price rose 1.9 per cent in April to $550,000, up from $540,000 in April last year.

Excluding Auckland, the median prices rose by 5.7 per cent to $460,000, REINZ said.

Norwell said Auckland was becoming a divided market.

"The Auckland property market is showing signs of becoming more complex with different sales patterns within the region. For example, Franklin sees a steady demand with moderate increases in sales, prices holding and a good listing base, whereas East Auckland is seeing a slowdown in auctions and open home attendees.

"Rodney continues to see an influx of out of town buyers looking to re-settle within the region as parts of Rodney are currently experiencing high growth in commercial building activity," she said.

Auckland first home buyers showed strong interest but price remained an issue and prices had moved very little lately, Norwell said.

More cheaper places selling had dragged down the median, she said.

"The number of properties sold for between $250,000 to $750,000 increased and the number of properties sold in the $750,000 and above brackets fell," she said.

Median April sales prices in Manawatu/Wanganui shot up 19.4 per cent to $305,000. Last April, they were $255,500. Nelson's median rose 15.8 per cent to $550,000, up from $475,000. Otago's median was up 19.5 per cent to $460,000, up from $385,000, REINZ said.

Southland was up 19 per cent to $250,000, Gisborne was up 14.3 per cent to $320,000 and Hawke's Bay was up 12 per cent to $431,250.

The median number of days to sell nationally rose by two days from 34 days last April to 36 days last month. Auckland sales took two more days on average last month than last April.

REINZ said sales volumes rose 6.6 per cent nationally last month compared to last April. Last month, agents sold 6368 properties