$30,000 spike in house values

Median house sale prices in Wanganui have taken a giant leap forward in the past month, with September's price $30,000 ahead of August's figure.

And while some of that can be attributed to the sale of houses in the higher price bracket, it was also indicating growing buyer interest.

Real Estate Institute of New Zealand (REINZ) data shows that 48 houses sold last month at a median price of $192,500.

Likewise, it's better news from the Rangitikei where the median has accelerated from a moribund $139,250 to $187,000. There, the new median price is riding on the back of nine sales for September.

REINZ includes Waverley, Raetihi, Taihape, Ohakune, Rangitikei, Wanganui rural and the city in its Wanganui-wide statistics. On this basis sales last month totalled 62 (up six from August), with the median price lifting from $149,250 to $183,000.

Jamie Doble, principal of Professionals - Coull Battell Ltd, said the market was showing signs of quickening and it was not unusual now for properties to generate interest from a number of potential buyers.

Mr Doble said it was the higher priced properties selling that was boosting the median price.

"In August six of those homes that sold locally were priced above $300,000. Last month six of the sales were higher than $300,000 and another two sold for $550,000.

"The good sign is we're getting more genuine inquiry for property and buyers still have a lot of choice," he said.

But one indicator shows just how tough the market has been in the past couple of years, with 15 of the 48 sales made last month having been listed last year.

"One of them was first listed in February last year and when it did sell it went for $69,000 while its government valuation was $110,000," Mr Doble said.

"But it's the same story. Those properties priced well will sell quickly and are attracting interesting from multiple buyers," he said.

Looking beyond our borders, median prices in Hawera dropped last month, dipping $3000 to $188,500 on the back of 18 sales for September.

In Feilding, median sale prices have taken a hit, dropping to $209,000 on 18 sales (down $12,000).

Wanganui city's median prices have waxed and waned over the past five years, according to REINZ (see panel), sitting at $169,000 in September 2007 and reaching $192,500 last month.

REINZ said sales in the combined Wanganui-Manawatu region were among the strongest in the country, with an increase of 12.4 per cent in the number of sales last month compared to August's figures.

It is those numbers which made the Wanganui-Manawatu region the third best performer behind Northland (up 30 per cent) and Otago (12.7 per cent). At the other end of the scale, Wellington recorded the biggest drop in sales volumes (down 9.3 per cent) and then Taranaki (down 7.9 per cent).

At a national level the institute said sales were marginally higher in September than they were in August and the national median price eased by $5000 to $350,000 (down 1.4 per cent).

Helen O'Sullivan, REINZ chief executive, said the September data indicated that the NZ real estate market was in better shape compared with this time last year, with volumes up more than 20 per cent.

There continued to be a reduction in the number of days properties were taking to sell.

PAST FIVE YEARS

Median prices in the city recorded during September for the past five years, showing number of sales in brackets are:

2007 - $169,000 (47)

2008 - $172,500 (43)

2009 - $190,000 (57)

2010 - $180,000 (45)

2011 - $192,500 (48)