Autumn Provides Few Falls For Real Estate Market

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News Release 11 May 2011 Autumn Provides Few Falls For Real Estate Market The national housing market recorded a lift in volumes during the month of April, with the seasonally adjusted number of

1 News Release 11 May 2011 Autumn Provides Few Falls For Real Estate Market The national housing market recorded a lift in volumes during the month of April, with the seasonally adjusted number of sales up 3.0% compared to March, according to REINZ figures, the most up todate data on the New Zealand real estate market. Across New Zealand 4,987 unconditional sales were reported for the month of April as the market came off the traditional March peak. The national median house price eased by $5,000 to $360,000 from March 2011, but was up $4,000 compared to April The April results reflect a steady market across New Zealand with signs of a lift in prices in the South Island, and Auckland prices still solid with limited supply, said REINZ Chief Executive Helen O Sullivan, Volumes across the country were stronger than we expected on a seasonally adjusted basis, with only Manawatu / Whanganui and Wellington showing negative volume movements. The results reflect some cautious optimism with no great outbreak of smiles but certainly fewer frowns. The Auckland region recorded a new all time high median house price in April of $479,500. Prices in the South Island also showed some strength in April 2011 compared with the previous month, with Otago recording a 9.3% increase, Central Otago Lakes 8.2% and Canterbury/Westland 6.9%. On a seasonally adjusted basis Central Otago Lakes and Otago recorded the strongest lifts in volumes in April compared to March 2011, although the 72% lift in Canterbury/Westland s volumes reflected both the extraordinarily low March and an easing of previous difficulties in obtaining insurance in this market. O Sullivan said, Auckland continues to lead the overall market in terms of price, with prices rising 2% compared to March and up 2% compared to April The Auckland region s days to sell also dropped in April, down to 34 days, with the region continuing to lead the national statistics in terms of days to sell, reflecting the continued tightening conditions in the Auckland market. The national median days to sell (measuring the number of days from listing date to unconditional date) eased from 41 days in March 2011 to 43 days in April 2011, compared with 40 days in April Auckland recorded the shortest days to sell at 34 days, reflecting the shortage of listings in this market, with Hawkes Bay next shortest at 41 days. Across the country all regions other than Wellington, Southland and Nelson/Marlborough recorded a decrease in days to sell. Northland remained the region with the longest number of days to sell at 73 days; however, this is a 21 day improvement over the March 2011 measure of 94 days.

2 Volumes in Christchurch City have staged something of a recovery in April, with 315 sales in the city in April 2011 compared with 193 in March 2011 and 511 in April While still a long way from previous activity levels, this indicates that the market is finding its way to a new normal. The median price in Christchurch City increased by almost 5% compared to March 2011 and increased 1.5% compared to April The timing of the recovery in transaction numbers is similar to that experienced after the September 8 earthquake and prices continue to firm in the city. As might be expected given the damage footprint, the recovery is not evenly spread, with some areas continuing to report extremely low numbers of transactions. Further Data Across New Zealand the total value of residential sales, including sections rose to $2.21 billion in April 2011, compared to $2.62 billion in March 2011 and $2.17 billion in April The breakdown of the value of properties sold in April 2011 is: $1 million plus % $600,000 to$999, % $400,000 to $599,999 1, % Under $400,000 2, % All Properties Sold 4, % The REINZ Housing Price Index rose 1.1% in April compared with March 2011, with the stratified median house price at just under $365,600. The REINZ Housing Price Index recorded increases in Auckland, Wellington and Other South Island, but also recorded falls in Christchurch and Other North Island. Compared to April 2010, the Housing Price Index fell 0.4%, and the Index is now 4.0% below the peak recorded in November The Section Price Index fell 8.1% in April 2011 and is now 23.1% below its peak recorded in July (see table and chart below).

3 REINZ Housing Price Index Chart REINZ Stratified Median Housing Price Index Statistics Index Level 1 Month 3 Months 12 Months 5 Years (CAGR)* From Peak New Zealand % 4.0% 0.4% 2.3% 4.0% Auckland % 7.5% 5.5% 3.2% 2.1% Wellington % 5.1% 0.2% 3.4% 3.4% Christchurch % 0.2% 4.2% 0.9% 9.1% Other North Is % 0.2% 4.0% 0.7% 10.3% Other South Is % 3.7% 0.6% 2.0% 6.1% Sections % 13.1% 8.2% 1.2% 23.1% * CAGR is Compound Annual Growth Rate ENDS

4 For further information, please contact: For national matters REINZ Spokesperson: Helen O Sullivan Tel: or mobile Real Estate Institute of New Zealand Or For local district enquiries Spokespeople: Northland Marilyn Gamman Auckland Helen O Sullivan Waikato/BOP/Gisborne Philip Searle Hawkes Bay Elanor MacDonald Taranaki Garry Malcolm Manawatu/Wanganui Tim Mordaunt Wellington Euon Murrell Nelson/Marlborough Paul Hedwig Canterbury/Westland and for Christchurch specific matters: Tony McPherson Otago/Southland Liz Nidd Central Otago Lakes Adrian Snow For more real estate information and market trends data, visit For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit REINZ's official property directory website. Editor s Note: The monthly REINZ residential sales reports remain the most contemporary and up to date statistics on house prices and sales in New Zealand. They are based on actual sales reported by real estate agents. These sales are taken as of the date that a transaction becomes unconditional and includes sales as of 5:00pm on the last business day of the month. The REINZ Monthly Housing Price Index is calculated using a technique known as stratification, which provides an averaging of sales prices for common groups of houses. This approach is considered a more robust analysis of actual house price trends and was developed in conjunction with the Reserve Bank. The REINZ Monthly Housing Price Index is based on a value of 1000 in January 1992, the first month for which electronic information is available. Changes in the index represent movements in housing prices, where the mix of sales between the groups is held constant and are more likely to reflect genuine property price movements. Other surveys of the residential property market are based on information from Territorial Authorities regarding settlement and the receipt of documents by the Authority from a solicitor. As such, this information involves a lag of four to six weeks before the sale is recorded by the Territorial Authority.

5 Regional Commentaries April 2011 Northland The median house price for Northland fell almost 12% in April to $292,000 and is now at its lowest point since June 2010, although the median price held steady in Whangarei City. This regional trend is against the national trend of generally increasing prices in April Volumes also eased noticeably, with April 2011 being the lowest April result for almost 20 years. Against this weakening trend of lower prices and volumes the days to sell continued to improve with the median days to sell in April reaching 73 days, 21 days shorter than the 94 days recorded in March and the recorded 111 days in February There appears to be some nascent interest in coastal properties and agents report that some older stock is now being sold as vendors meet the market. Auckland Region The Auckland region median house price reached an all time high of $479,500 in April underlining the supply/demand dynamics that have been evident in the Auckland market for some months. Across the region prices rose 2.0% with strength being shown in Auckland City and Manukau City, while North Shore prices have eased after a strong run in February and March. Sales volumes eased back in April 2011 compared to March 2011, although in seasonally adjusted terms April s volumes were down only 0.3% compared to March 2011 and up 11.4% compared to April Volumes have continued to be strong in North Shore City and Waitakere City. For the three months ended April 2011 the Auckland Housing Price Index has increased by 7.5% and Auckland is now only 2.1% below its July 2007 peak. The Auckland region s days to sell at 34 days was the shortest for all regions recorded in April 2011 and is a 1 day improvement over the 35 days recorded in March 2011, and the 35 days recorded in April 2010.

6 Waikato/Bay of Plenty/Gisborne The median prices rose 2.6% across the Waikato/Bay of Plenty region during April compared to March 2011 but fell 0.7% compared to April Prices were up noticeably in Waikato Country, Hamilton City and Rotorua, but fell in Tauranga and Mount Maunganui/Papamoa after a strong rise in March. Volumes fell just over 11% across the region but were up 3.5% on a seasonally adjusted basis compared to March 2011 and up 1.3% on a seasonally adjusted basis compared to April The median days to sell improved by 4 days to 60 days in April 2011 compared to 64 days in March 2011 and 79 days in February 2011, although the days to sell were 8 days longer than April 2010 (52 days). Hawkes Bay In line with most regions the median house price increased in April 2011, recording a 4.4% rise across the Hawkes Bay region compared to March 2011, although prices are down 1.5% compared to April Napier s price rise of almost 10% in April 2011 compares to a similar sized fall in March Volumes were noticeably weaker across the region, with almost 40% fewer sales in April compared to March 2011 and 28% fewer than April The median days to sell for the region was 41 days, the second shortest for New Zealand in April This is 11 days shorter than 52 days to sell recorded in March 2011 and 1 days shorter than the 42 days to sell recorded in April 2010.

7 Manawatu/Wanganui The Manawatu/Wanganui region recorded a moderately positive result for April 2011, with prices rising almost 1% compared to March 2011 and the fall in volumes lower than the national result. The median price rose noticeably in Wanganui on higher volumes. Prices also rose by more than $6,000 in Palmerston North City and volumes remained steady compared to March The April result for the region indicates that the seasonal lift may have occurred later this year compared to previous years after a weak March 2011 result was recorded. The median days to sell remained steady at 49 days in April 2011 compared to March 2011, although this was 4 days longer compared to April 2010 (45 days). Taranaki The median house price for the Taranaki region increased by $9,000 or 3.3% compared to March 2011, and was down only $500 compared to April Prices in New Plymouth City were up strongly compared to March 2011, although the number of sales was down by almost 43%. The fall in prices in Taranaki Country comes after a strong rise in March 2011; care needs to be taken due to the small size of the dataset for this suburb. Volumes fell 14.5% in April 2011 and equal the same number of sales as in February 2011, although volumes are down 9% compared to April The median days to sell in Taranaki fell to 45 days in April 2011, compared to 49 days in March 2011 and 59 days in April2010.

8 Wellington The median house price for the Wellington region fell by almost 7% in April 2011 compared to March 2011, and only down 1% compared to April The Wellington region recorded the second largest fall in prices in April Within the region prices were up noticeably in Upper Hutt and Central Wellington and weaker in Eastern Wellington and the Hutt Valley. Volumes across the region were weaker than the national result with Central Wellington and Hutt Valley showing better volume performance than the regional and national results. The Wellington region s median days to sell increased by 5 days to 42 days compared to 37 days in March 2011, and 3 days longer than the 39 days recorded in March Nelson/Marlborough The median house price for the Nelson/Marlborough region increased by $10,000 or 3% compared to March 2011, and fell by only $500 compared the April Prices increased noticeably in Marlborough/Kaikoura on flat volumes compared to March Prices in Richmond were also up noticeably in April 2011 compared to March 2011, although the low volume of sales indicates the result should be treated with caution. Nelson/Marlborough s days to sell increased by 1 day to 57 days in April 2011 compared to March 2011, and increased by 14 days compared to April 2010.

9 Canterbury/Westland Volumes increased in Christchurch City by 63% compared to March 2011, but were almost 40% below April 2010, due to the continuing effects of the February 22 earthquake. The fall in volumes in April compared to April 2010 is significantly lower than the 68% fall in volumes recorded between March 2011 and March 2010.Volumes were up noticeably in South Canterbury, although noticeably weaker in Timaru. Median prices rose 4.7% in Christchurch City in April 2011 compared to March 2011 and up 1.5% compared to April Prices were also up strongly in Mid Canterbury. Across the region the median price increased by almost 7% compared to March 2011, and was flat compared to April The median days to sell improved by 1 day to 49 days in April 2011 compared to March However, days to sell eased by 13 days compared to April Central Otago Lakes The median house price rose 8.2% between March 2011 and April 2011, the second strongest rise across New Zealand. Compared to April 2010 Central Otago Lakes recorded the strongest lift in prices with an 11.5% increase or almost $50,000. Volumes in April 2011 were up strongly compared to March 2011, and up 6% compared to April The median days to sell for the Central Otago Lakes region fell 13 days to 47 days in March 2011 and fell 9 days compared to April 2010.

10 Otago The median house price for the Otago region recorded the strong rise across New Zealand for April 2011 with a 9.3% increase; however, this comes after a weak March 2011 result. The comparison with April 2010 provides a fairer view on the overall trend in house prices for the region. Volumes fell in line with the national trend compared to March 2011 but rose the most of any region compared to April The median days to sell improved by 3 days to 47 days in April 2011 compared March 2011, but were 9 days longer compared to April Southland Median house prices increased by 4.0% in April 2011 compared to March 2011 and by 4.5% compared to April Southland recorded the second strongest increase in house prices on an annual basis in April 2011, with only Central Otago Lakes recording a greater increase. The change in volumes was better than the national result compared to March 2011, but was weaker when compared to April Southland s days to sell lengthened by a full 14 days in April 2011 to 50 days, compared to 36 days in March 2011 and 37 days in April Southland had the worst change in days to sell across New Zealand in April 2011.

Auckland Median Price. Auckland Region Sales Volumes Past 5 Years. REINZ Auckland Region Analysis for March Past 5 Years.

Auckland Median Price. Auckland Region Sales Volumes Past 5 Years. REINZ Auckland Region Analysis for March Past 5 Years. 39202 39202 REINZ Auckland Region Analysis for March 2012 Commentary Sales volume in the Auckland region increased by more than 37% compared with February 2012, with North Shore City and Auckland City