Big jump in November house sales

Photo / Hawkes Bay Today

New house price data released today by the Real Estate Institute for November shows a 17 per cent increase in the number of house sales when compared with the same month last year.

There were 6,008 unconditional sales for the month, up 20 per cent from the month before - a 4.3 per cent increase when seasonally adjusted.

The national median house price rose was up 2.4 per cent from October to $367,500 and is also up 2.1 per cent from November last year.

The Real Estate Institute of NZ (REiNZ)said this was a new record median house price for New Zealand, exceeding the previous record of $365,000 reached in March 2011.

Today's REINZ research comes just a day after valuers Quotable Value released its own property stats, which show that nationwide residential property values in November were 1.7 per cent higher than a year earlier and 4 per cent below the 2007 market peak.

This research also showed Auckland prices were up 3.4 per cent year-on-year, and 0.6 per cent from the 2007 peak - taking them to their highest level ever. Jonno Ingerson, research director at QV.co.nz, said national property values had been gradually increasing since April, driven initially by Auckland and Christchurch.

However, over the past three months values had started to rise in other main centres, and in many provincial and rural towns.

REINZ's Housing Price Index for Auckland, also released this afternoon, is now at the same level that it reached at the peak of the market in July 2007, although most other markets tracked by the institute's Housing Price Index are still below the peak.

"Of note in Auckland has been the rapid increase in the number of properties being sold at auction with almost 27 per cent of unconditional sales in November being sold at auction, an all time high for the region," said the institute.

All regions recorded an increase in sales volumes during November compared to October, with Northland reporting the largest increase at 33.3 per cent and Southland the smallest increase at 6.9 per cent.

Real Estate Institute chief executive Helen O'Sullivan said the lift in November sales numbers was positive, following the "somewhat muted sales numbers for September and October".

"While there may be some element of 'catch up' from these slightly quieter than expected months, there is a sense of buyers and sellers being ready to commit and clear the decks post Rugby World Cup before the end of the year. " she said.

"While the data coming from the housing market is generally positive, the volume figures say recovery, not boom as some commentators have suggested.," said O'Sullivan.

"In 2007 the market reported just over 92,000 transactions in the 12 months to December; the 2011 year to date total is just under 56,000 transactions with the month of December yet to come, demonstrating that the level of activity is still well below "boom" levels. "

"With that said, we would love to see increased supply of new homes coming through in the form of improved consent figures, as reports indicate that the lack of new stock remains a concern."

- HERALD ONLINE