REINZ: Market slowing

REINZ reported that there were 5670 dwelling sales in the month of April, down 20.2% on April last year and down 22.5% compared to March.

QV last week reported that things seemed to be turning around after a drop-off earlier in the year but REINZ provides more up-to-date data, because it is based on deals that go unconditional. QV’s data comes from settled sales so can be a few months behind.

The national median price was $432,250 for the month of April, an increase of $41,750 compared to April 2013, but a fall of $7750 from March.

Chief executive Helen O’Sullivan said all regions had been affected by the decrease in turnover. Southland recorded the largest fall of 28.7%, followed by Auckland with 27.2%.  Compared to April 2013 all regions recorded a fall in sales volume with Manawatu/Wanganui recording the largest fall of 29.4%, followed by Otago with a fall of 24.3% and Taranaki with a fall of 24.0%.

“The fall in April compared to March 2014 and April 2013 deepens the underlying trend for easing sales volumes.  April is generally a softer month for real estate sales coming off the back of a generally strong March and with the added complications of school holidays and Easter.  However, these factors cannot explain the entire drop between April this year and April last year – the volume of sales has retreated to 2012 levels, and is the seventh lowest April volume recorded by REINZ," O'Sullivan said.

She said the number of sales for less than $400,000 continued to fall faster than the market overall, down 31.6%. There had been an increase in activity in the over-$1 million part of the market.

“Commentary from real estate agents around the country indicates that first-home buyers are an even scarcer commodity than they were in October and November last year.”

Seventy per cent of the increase in the national median price compared to April last year occurred in Auckland, with Canterbury/Westland contributing 15% of the increase and Waikato/Bay of Plenty contributing 13%. Together these three regions accounted for 88% of the increase in the median price between April 2013 and April 2014.

Northland recorded the largest increase in median price compared to April 2013, with a 16.8% increase, followed by Canterbury/Westland with an 11.9% increase and Waikato/Bay of Plenty with a 10.5% increase.  Compared to March, Northland also recorded the largest increase in median price, up 12.5%, followed by Southland with 8% and Taranaki with 6.9%.

Dwellings took one day fewer to sell in April compared to March at 34 days.  Compared to April 2013, the median number of days to sell was steady at 34 days.