Sales all point to growth in the Bay

The Hawke's Bay economy has shown positive growth, according to three economic indicators released yesterday.

Hawke's Bay real estate volumes in June increased 25.6 per cent compared with last year, according to REINZ figures. National volumes increased 17.3 per cent.

Activity in Hawke's Bay is greatest at the lower end of the market with the median price falling to $265,000 from May's $271,000. The 2011 June median was $254,000.

Real estate agents attribute increased movement in the lower end of the market to first-home buyers, with low interest rates plus KiwiSaver and Welcome Home schemes making houses more affordable.

The national median house price rose by $3000 to $372,000, $2000 above the previous high set in March this year. The national median is up 3.3 per cent compared with June last year, with Auckland maintaining the $500,000 record median set last month.

Hawke's Bay employment vacancies advertised on Trade Me increased 25.5 per cent in the second quarter compared with the same time last year. The national average was 8.2 per cent.

Head of Trade Me Jobs, Pete Ashby, said the country's "two-speed economy" was in full swing.

"Canterbury continues to provide a huge impetus in job listings and was up 49 per cent, while the rate of growth in the rest of the country is back in second gear.

"Overall, it's encouraging news in the face of the challenging economic conditions around at the moment."

Paymark figures show Hawke's Bay retail spending for the month of June increased by 4.6 per cent compared with last year, below the national average of 5.1 per cent.

Taranaki/Taupo recorded the strongest increase, up 6.8 per cent, and Gisborne the lowest at 1.9 per cent.

Nationally, non-fuel spending increased for the third consecutive month. Cafes and restaurants recorded growth of 9.3 per cent for the year.

Paymark processes about 75 per cent of electronic transactions in New Zealand.