House Prices Near Record. Sales Slow. Average Up $5000.

Naturally house sales will slow when there isn’t enough stock around.

It’s totally logical. More stock = lower prices, less stock=  higher prices.

Oddly enough rental prices have not kept up with house prices.  This will steadily reverse as frustrated first home buyers become increasingly locked out of the market.
Watch this space.

Sales growth slows, property prices up $5000
Sept 16, 2013

Property prices fell across NZ last month, though the number of sales was up.

National property prices were up $5,000 in August, taking the national median price to $390,000 – with the 1.3 per cent monthly rise taking prices to near the the record median set in March.

But recent growth in national sales volumes appears to be slowing.

Statistics released this morning by the Real Estate Institute of NZ show the national stratified housing price index, which takes into account the amount of high, or low-priced homes sold, was up 2.1 per cent to a new index high.

The Auckland index was up 6.5 per cent from the month before.

REINZ chief executive Helen O’Sullivan said agents across New Zealand were reporting strong activity from first-home buyers keen to secure properties ahead of changes to the Reserve Bank’s loan rules.

“However the reports suggest that this is occurring more in the regions, rather than in Auckland and Christchurch where we are seeing greatest price pressure.”

The number of houses sold in August fell 3.4 percent to 6,548, for an annual gain of 8.5 percent in the same month a year earlier, according to the Institute. That’s slowed from a peak annual pace of 33 percent in April.

Read the rest here:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11125270

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