Report from BusinessDesk
Auckland’s property market continues to underpin a nationwide improvement in values, which are 2.7 percent ahead of the same time a year ago, according to government valuer Quotable Value.

National property values rose 1.1 percent in the three months ended Jan 31, and are now 3.3 percent below the previous market peak in late 2007, QV said.

That national gain has come from rising values in Auckland, which are up 5.1 percent on the same time in 2011, and are above the 2007 peak by 1.9 percent. Provincial centres struggled in the three month period, with urban and rural areas registering gains.

“The increase in values in many areas, particularly central Auckland, can in part be attributed to a lack of supply, with a shortage of desirable and well-presented properties for sale,” research director Jonno Ingerson said in a statement. “When quality properties come up for sale in these areas, they are in high demand, which is tending to push the price up.”

The number of house sales climbed by a fifth in December from a year earlier, according to Real Estate Institute figures last month, though the number of homes on the market remains low by historical standards. The market has spent much of the last year in decline as households avoid taking on new debt to buy property, instead using low interest rates to repay outstanding bank loans.

QV’s Ingerson said market activity has picked up since the start of the year, though “potential buyers remain cautious and calculated and are often unwilling to commit quickly.”

Auckland’s average sale price in the three months ended Jan. 31 rose to $610,760 from $597,032 in December.

Wellington city property values were 0.3 percent higher through the 12 months ended Jan. 31, and have recovered most of their losses since the middle of 2011. The average three-month sale price rose to $500,063 from $483,160 a month earlier.

Christchurch property values were 3.7 percent above the same month a year ago, with the average sale price at $377,040, up from $371,885, and Dunedin property values were 3.4 percent higher 12 months ago, with the average sale price at $272,657 in January, up from $265,210.

Report from Businesswire
New Zealand home sales climbed by more than a quarter in January from the same month last year as the market gradually recovers momentum after an extended lull.

The number of sales rose 25 percent to 4,073 last month from January 2011, when it recorded its worst month ever, and was down 7.4 percent from December, according to Real Estate Institute data. The national median sale price was unchanged at $355,000, and up 4.4 percent from the same month last year.

“The supply of housing remains low, particularly in Auckland and Christchurch, which has resulted in tight market conditions which will underpin further increases in house prices over the coming year,” said Jane Turner, economist at ASB. “Agency listing data show the housing market is particularly tight in Auckland as supply of new houses remains low, and has created upward pressure on house prices.”

The figures come after government valuer Quotable Value said property values rose 2.7 percent last month compared to a year earlier, as Auckland’s strength underpins the nationwide gain.

The REINZ stratified hose price index, which strips out monthly variance in proportion to high or low-value properties, fell 1.4 percent in the month to 3253.8, and is 3.8 percent below the peak in 2007. It’s up 4.3 percent on an annual basis.

Helen Sullivan, REINZ chief executive, said the shortage of listings is apparent in many areas, and causing “increasing levels of buyer frustration.”

“Prices remain relatively stable despite the supply pressure, which probably reflects the reluctance of buyers to over-extend themselves while economic uncertainty continues,” Sullivan said.

The national median number of days to sell rose to 47 in January from 35 a month earlier, and was down from 51 days in 2011.

In Auckland, the median house price rose 4.7 percent to $471,000 from a year earlier, with the number sold up 27 percent to 1,421 in January.

Wellington house prices gained 4.1 percent to $385,000 from January 2011, while the number of houses sold climbed 15 percent to 435.

Christchurch sale prices rose 2.3 percent to $337,444 and the number of houses sold increased 4.1 percent to 282.

Dunedin house prices gained 11 percent to an average $245,000, while the number sold gained 35 percent to 143 in January.

(BusinessDesk)