House sales on the up, but prices still sluggish

Residential real estate business began picking up in March. Photo / Herald on Sunday

House sales in March were healthier than they have been for some time, but the median price is down from 12 months ago, according to figures released today by the Real Estate Institute of New Zealand (REINZ).

The months of January and February are traditionally slower for property sales, so an upward movement in March is by no means unexpected.

The total number of homes sold nationwide in March was 6,694, up from 5,228 in February and from 5,129 in March 2008.

All these figures are well down on the five-figure turnovers of the same period in 2003 through to 2007.

"I'm hearing that March was the best month for some time with properties available for sale and genuine buyers and sellers ready to meet market prices," said REINZ president Mike Elford.

The median price for homes across New Zealand at $335,000 for March 2009 is slightly up on February's $330,000 and on a par with the March figure from 2007 of $343,500 - but down on the comparable period in March 2008, $349,000.

Prices dropped in most areas of the country, from between 0.57 per cent in Auckland through to 9.37 per cent in the Central Otago Lakes District in March 2009 compared with March 2008.

"The indications are that there is renewed interest in the real estate market stimulated by the drop in interest rates and the affordability of properties," said Elford.

"We're seeing investors back too, moving away from equities and returning to investments such as real estate."

- NZHERALD STAFF