House sales hot in the cold weather

Even the depths of winter didn’t dampen activity much in the housing market in July.

The Real Estate Institute reports the median house price rose to $185,000 from $184,000 in June, although still down from April’s record $189,000. And 7,795 houses changed hands, a record for the month of July.

That was up from the 7,486 homes sold in June and compares with 6,122 sold in July last year.

"At this time of the year we would usually anticipate an easing in the total number of sales and median price," says institute president Rex Hadley. "However, when last month is compared to the month of July in the previous two years (2001 and 2002) the median price has increased by a net $15,000."

Increased net migration and more expatriate New Zealanders returning home now than in recent years are providing much of the stimulus behind current activity, as has a relatively stable mortgage market, Hadley says.

Last week, the Reserve Bank left its OCR unchanged at 5.75% after raising it from 4.75% since the beginning of the year.

The figures show activity rose in July in all regions except Hawke’s Bay, Manawatu/Wanganui, Wellington and Otago. Compared with July last year, activity was up in all regions except Manawatu/Wanganui.

Compared with June, the median price rose in six of the 11 regions, most notably in Wellington where it rose from $198,000 to $205,000. Compared with July last year, the median price was up in all regions except Northland, Manawatu/Wanganui and Southland.

In the key Auckland market, the median house price fell from $261,800 in June to $259,000 in July but was up from $239,000 in July last year. The number of houses sold in Auckland rose from 2,657 in June to 2,867 in July and was well up on the 2004 homes sold in July last year.

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