Turnover dropped in December: REINZ

In December, there were 5688 residential sales, down 1.1% on the same time in 2012 and a drop of 18.3% compared to November.

The national median price increased $2000 compared to November to $427,000, a new record median high.  Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Nelson/Marlborough and Canterbury/Westland all recorded new record high median prices.

REINZ chief executive Helen O’Sullivan said: “The softer trend in sales noted in November 2013 continued into December.  The shorter selling month in December means that a drop from November sales volumes is a normal part of the seasonal pattern; however, the 10-year average fall is 13.6%, while this year sales volumes have declined 18.3% from November.  While a small number of regions bucked the trend, other parts of the country recorded significantly greater falls in volume than the national figure.”

She said some regions might have reported higher median sales prices because fewer sales were taking place in the lower price bands.

While the total number of sales was down 1.1% compared to December 2012, the number of sales below $400,000 fell by 14.4%.  This follows a fall in sales below $400,000 of 19.6% between November 2012 and November 2013. 

“The effect is not seen across the board however, with Auckland reporting a $20,000 fall in the median price from November 2013.  Further data is needed over the next few months to determine if this is a new trend, or a short-term effect caused by a change in the pace of sales at lower price points given the increased complexity some buyers in these price points now have to navigate,” O’Sullivan said. 

Dwellings took one day more to sell in December compared to November at 32 days.  Compared to December 2012, the median number of days to sell was steady at 32 days. 

Six regions saw an improvement in the number of days to sell between December 2012 and December 2013, with Waikato/Bay of Plenty recording the largest improvement of 10 days.

For the month of December, Canterbury/Westland recorded the shortest days to sell at 27, followed by Otago and Wellington at 29 days, and Auckland at 30 days.  

Northland recorded the longest number of days to sell at 58.