First home sales almost disappear

New house sale figures released recently by the Real Estate Institute of New Zealand show March sales were down in the Wellington region, which includes Wairarapa.

The Wairarapa first home buyer market has almost "dried up", says a Masterton agent.

New house sale figures released recently by the Real Estate Institute of New Zealand show March sales were down in the Wellington region, which includes Wairarapa.

Sales dropped to 753, down 9.5 per cent from 832 a year ago, while the median price rose 1.4 per cent from $394,500 to $400,000.

REINZ chief executive Helen O'Sullivan said there were "clear signs" the national number of sales had eased since November, following the introduction of Reserve Bank home loan lending restrictions in October which restricted lending for those with a deposit of less than 20 per cent.

National median prices soared 10 per cent in March to a record high of $440,000, while the number of houses sold fell to 7315 from 8128.

The REINZ figures follow the release of a report by state valuer Quotable Value showing home loan approvals and sale numbers were down nationwide.

A further report by Harcourts showed the average March sales price for Auckland and Northland properties jumped to a record high of $697,454, potentially squeezing first home buyers out of the market.

Wairarapa Professionals Patrick and Scott principal Andy Scott said some higher valued properties had sold across Wairarapa but there had been fewer low-priced sales - typically the domain of first home buyers.

Retirees from Wellington were buying in Carterton because it was cheaper than Wellington, he said.

"It's a good place to retire."

Masterton sales lifted in March across all companies to about 49 from an average of about 35 per month, he said.

"People start looking in February and it all comes together in March."

Ms O'Sullivan said first home buyers in many of the quieter regions were feeling the impact of the October lending restrictions.

Since then the Reserve Bank has lifted official interest rates from 2.5 per cent to 2.75 per cent, the first of an expected series of rate rises.

Across the 12 regions, only Southland and Central Otago Lakes showed an increase in sales compared to March 2013.