SOURCE NZ Herald
3.05PM Friday November 09, 2007
NZPA

The predicted slowing of the real estate market is starting to kick in.

After nationwide property sales hit a six-year low in September, market watchers hoping for a bounce in October were out lof luck.

Monthly figures out today from the Real Estate Institute (REINZ) make grim reading.

Sales are still grindingly slow, although the silver lining for vendors is that median house prices have managed to stay firm.

Figures published today by the institute put the national median at $350,000, down 0.4 per cent from September but within the tight range traded in the last six months.

Annual median price growth has slowed to 8.02 per cent from 12.30 per cent in the year ended September.

Days to sell lengthened to 35 from 32 over the month.

Sales numbers recovered by nearly 1000 to 6854, but were 2000 below sales a year earlier, and were low enough to distort the price movements, REINZ president Murray Cleland said.

“Some of the regional statistics are being unduly influenced by low volumes, and generally areas where prices are holding up are the likes of Auckland Region and Auckland Metropolitan where the regional price is up from $441,500 in September to $445,000 in October, while the Auckland Metropolitan prices, which might have been expected to fall, hung on steadfastly with an unchanged median of $445,000.”

Auckland regional sales volumes rose to 2240 from 1956 in September, and Auckland city sales rose to 778 from 641.

Wellington region’s median sales price dipped 4 per cent to $365,000, while sales rose 14 per cent to 759.

Of the 12 regions, eight experienced median price falls, and four rose.

As well as Auckland, regions to record a rise were Nelson/Marlborough (up 4.8 per cent to $347,000), Waikato/Bay of Plenty (up 1.8 per cent to $329,000), and Central Otago Lakes (up 12.4 per cent to $545,000).

- NZPA