by Jenny Ruth
Nevertheless, institute president Rex Hadley struck a cautious note.
"The results from August are very pleasing, but it’s just getting back to normal, bearing in mind that 2000 was the worst period in 10 years," Hadley told Good Returns.
But the impact on the New Zealand economy of last week’s terrorist attacks has yet to be seen. "I do not believe there is a commentator in the world that can reliably predict the long term effect of the New York tragedy," he says.
Nevertheless, Hadley expects New Zealand’s Reserve Bank to follow the lead of the US Federal Reserve in cutting interest rates. The Fed cut its benchmark rate from 3.5% to 3% overnight, New Zealand time.
"I think there’s room to move considerably. I would be disappointed if it was anything less that half a percentage point. There’s an argument that it should be higher. Why are we a percentage point higher than Australia?" Hadley says.
New Zealand’s central bank’s benchmark rate is currently 5.75% while Australia’s is 4.75%.
The institute figures show the national median house price rose to $176,000 in August from $170,00 in both July and in August last year.
They show that the number of houses sold nationally rose to 6,976 in August from 6,122 in July and from 5,489 in August last year. Hadley says 7,000 houses sold in a month is normal.
The total value of sales rose to $1.45 billion from $1.25 billion in July and $1.08 billion in August last year.
On a regional basis, five of the 11 regions saw the August median price rise from July, five regions experienced declines and one was unchanged. Compared with August last year, the median price rose in all but two regions, Hawkes Bay and Otago.
Compared with July, activity rose in eight of the regions and fell in three. Compared with August last year, activity rose in all 11 regions.
| REGION | AUG 96 | AUG 97 | AUG 98 | AUG 99 | AUG 01 | JULY 01 | AUG 01 |
| Northland | 112,000 | 135,000 | 155,000 | 140,500 | 137,500 | 160,000 | 147,500 |
| Auckland | 220,000 | 233,000 | 225,000 | 230,000 | 137,500 | 239,000 | 240,000 |
| Waikato/BOP/Gisborne | 135,000 | 150,000 | 148,000 | 155,000 | 155,500 | 162,000 | 161,000 |
| Hawkes Bay | 122,000 | 119,500 | 115,000 | 115,250 | 135,000 | 135,000 | 123,861 |
| Manawatu/Wanganui | 106,500 | 95,000 | 95,750 | 101,500 | 95,000 | 105,000 | 103,000 |
| Taranaki | 105,000 | 95,500 | 92,550 | 93,500 | 93,000 | 96,750 | 95,000 |
| Wellington | 134,250 | 152,000 | 160,000 | 170,000 | 188,500 | 190,000 | 200,000 |
| Nelson/Marlborough | 130,000 | 143,500 | 131,000 | 141,500 | 136,875 | 145,000 | 147,750 |
| Canterbury/Westland | 130,000 | 144,000 | 140,000 | 145,000 | 143,000 | 136,000 | 136,000 |
| Otago | 97,775 | 87,000 | 92,000 | 104,500 | 99,500 | 94,500 | 101,000 |
| Southland | 85,000 | 83,000 | 75,000 | 77,750 | 73,000 | 84,000 | 95,000 |
| NZ Total | $147,000 | $165,000 | $164,000 | $169,000 | $170,000 | $170,000 | 176,000 |
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