Nine regions recorded increases in sales volume during the three months to the end of August this year, with Canterbury recording the largest increase (14 more sales than a year earlier) followed by Northland, where there were 10 more sales than during the same three months last year.
REINZ rural spokesman Brian Peacocke says listings were in short supply in all districts, but buyer enquiry was strong across the country. There had been "solid activity" in the horticultural sector in the Bay of Plenty, and strong enquiry for quality dairy support and cropping properties.
He says investor interest was focused on properties that generated a return acceptable to the equity market, while environmental and compliance issues were having an impact on all regions.
The lifestyle property market had a 13.9 per cent fall in sales volume in the three months to the end of August compared with a year earlier.
"While the volume of sales of lifestyle properties has fallen over the past 12 months, over half of the regions have held or marginally increased levels of sales over July and August," says Mr Peacocke.
Quality lifestyle properties that were well priced to the market continued to sell well.
Rural real estate market observers will be watching the next set of three-monthly figures to see how much impact falling dairy prices are having on the market, with economists predicting the fall will have a significant impact on regional economies.
ANZ rural economist Con Williams says the impact will be material if there is not an improvement in prices.
"The headline reduction is equivalent to an approximate $5 billion hit to dairy revenue, or 2.2 per cent of GDP," he says.
But he says the impact would start to show up only in the 2015-16 season if there were another low milk price and opening advance.
"So the forecast improvement in international prices and or a materially lower New Zealand dollar are key to averting a material increase in financial stress," he says.
The ANZ economists say the forestry and dairy sectors have had downward adjustments in prices, with Global Dairy Trade prices nearly halving since February.
"Having arrived early, the dairy sector is now looking like it will be one of the first to leave the party."
In their September Economic Outlook report the ANZ economists say, however, that they remain optimistic there will be a better outcome of $6.50kg milk solids in 2015-16.
With international turmoil continuing, all eyes will be on the next set of REINZ rural property statistics to see just how much impact falling commodity prices are having.
