Property sales plunge in May, some price falls too - Harcourts

House sales plunged in May and values fell in some areas compared with a record month last year, real estate company Harcourts said today.

In the company's "Northern" region, which includes Auckland, the number of properties "on hand" increased 54 per cent from the same month last year, while the number of May sales was down 53 per cent.

Average prices were down 11 per cent to $480,000.

The property market had reached a stalemate with buyers expecting bigger bargains and sellers unwilling to accept lower prices, Harcourts chief executive Bryan Thomson said.

A series of Reserve Bank interest rate rises, along with an international credit crunch, global economic concerns and rising food and fuel prices, had achieved a slowdown in the housing market which began booming in 2002.

Commenting on the stand-off, saying that for both buyers and sellers, "if you both buy and sell at the same time, you are protected."

"Some will tell you to buy at a low and sell when at the peak, but that requires you to put your life on hold until the 'perfect time' when in the vast majority of cases the only people who ever actually get it right are those looking back with the benefit of 20:20 hindsight."

"Our advice is clear, buy or sell when you need and want to. If that is now then go ahead and move on with your life. Waiting makes no sense based on the facts."

Christchurch had the smallest fall in monthly sales, while Wellington and provincial South Island had the only increase in average price.

In the central North Island, sales fell 52 per cent, property on hand rose 34 per cent, and the average price was down 1 per cent at $365,000.

Wellington sales fell 38 per cent, property on hand rose 43 per cent, while the average price rose 3 per cent to $366,000.

In Christchurch, sales fell 33 per cent, property on hand jumped 71 per cent, and the average price was down 3 per cent at $395,000.

Provincial South Island sales fell 39 per cent, property on hand was up 28 per cent, and the average price rose 22 per cent to $372,000 on the back of a strong rural market.

The Real Estate Institute said last week that national May property prices were down 1.4 per cent on a year earlier, and sales slumped 53 per cent.

- NZPA