Housing market slows slightly in September
Housing sales slowed slightly in September but are still robust, according to the latest Real Estate Institute figures.
Monday, October 21st 2002, 12:00AM
by Jenny Ruth
Housing sales slowed slightly in September but are still robust, according to the latest Real Estate Institute figures.
There were 7943 houses worth $1.86 billion sold in September compared with 8036 in August. Nevertheless, compared with September last year, September sales were up 41.7% from just 5604.
The median house price in September came in at $185,000, the same as in both July and August and down from April’s record $189,000.
But it was still $12,000, or 6.9%, higher than the median price in September last year of $173,000.
Institute president Graeme Woodley expects sales to remain strong for the rest of the year, noting that Spring through to Christmas is always the market’s peak period.
"Lending institutions are starting to decrease long-term fixed-rate mortgages on offer. Lower rates mean better returns for investors and altogether good news for residential and first home buyers," Woodley says.
Demand is strong from both owner occupiers and investors, he says. "Continuing strong migration flows and the opportunities residential housing provide in building personal investment portfolios all play a contributory role in the current demand for housing."
He notes the "realistic expectations" about housing prices from both buyers and sellers in most regions.
The latest figures show the median price rose in eight of the 11 regions in September compared with August, most markedly in Northland, where it rose from $155,000 in August to $169,000 in September, and in Auckland where it rose from $264,000 in August to $273,000 in September.
Compared with September last year, the median price rose in all 11 regions, as did activity.
Compared with August, the number of September sales rose in seven of the regions but fell in Auckland, Hawkes Bay, Manawatu/Wanganui and Wellington.
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