Median prices only part of the story

The median sale price of properties in Wanganui is down but a local real estate agent says the market is busier than ever.

Real Estate Institute of New Zealand (REINZ) figures show the median price of Wanganui properties was $162,000 in September - $3000 less than in August and $10,000 less than in September 2014.

Fifty-seven properties sold last month, which was 10 fewer than in August but seven more than last September.

Ray White Wanganui principal Tim Hocquard said there was more going on in the market than the figures indicated.

"They're just figures, they don't paint the whole picture of what's happening in Wanganui," he said.

"If you took out Housing New Zealand sales and forced-mortgagee sales, the median would be a lot higher.

"We've seen prices and sales going up consecutively for the past five months."

Mr Hocquard said there were lots of positive indicators in the market.

"Wanganui real estate agents are all busy. We're seeing a lot more people actually coming into the office inquiring about properties. The number of days a property stays on the market is also shorter."

Mr Hocquard said there was a shortage of properties in the $225,000 to $350,000 price range.

"Properties in that price range and ones that are higher are an absolute bargain for people from outside of Wanganui."

Nationally, 8174 dwellings sold in September. This was 38.3 per cent more than in September 2014 and 5.3 per cent up on August.

The national median price was $484,650 for September, an increase of $64,650 or 15.4 per cent on September 2014, to reach a new record high. The price was 4.2 per cent higher than the previous month.

REINZ chief executive Colleen Milne said Aucklanders moving to the regions was still a prominent market trend.

"There is continued evidence of Auckland investors and first-home buyers spreading to other regions, causing a 'halo' effect, most notably in Northland and Waikato/Bay of Plenty," she said. "These regions have recorded very strong sales growth so far during 2015, and this is now starting to be seen in the median price data.

"The new IRD number requirements may have had some dampening effect on offshore buyers in Auckland, although this is not shown in the data."

New loan-to-value ratio limits, which come into effect on October 30, will mean buyers in the Auckland Council area will be required to have a deposit of at least 30 per cent. Meanwhile, the "speed limit" for high LVR borrowing outside Auckland will increase from 10 to 15 per cent, meaning banks will be able to give out more high-value loans to regional buyers.

"The forthcoming relaxation of the loan-to-value ratio restrictions for the regions will have a positive effect for first-home buyers but may add to the consequential shortage of listings in their range," Ms Milne said.