Residential property market proved particularly resilient in May

The residential property market proved particularly resilient in May with the number of sales up and the national median selling price reached $305,500, compared with $305,000 last month according to the Real Estate Institute of New Zealand (Inc).The latest residential market report for May shows the number of sales nationwide up for the month to 9,642 from the 7,576 sales in April and higher than the number of May 2005 sales of 9,249.

Monday, June 19th 2006, 12:00AM

by The Landlord

The number of properties sold during May 2006 is higher this month than sales in the month of May over the past decade with the exception of May 2003 when 11,336 properties sold.

REINZ National President Howard Morley said, “The sales statistics show that the market has consolidated; prices remain strong with a good number of properties continuing to sell, which shows a resilient residential property market.”

May saw the national median selling price buoyed by the Auckland market where it reached $400,000 up from $387,250 in the previous month.

Five regions saw the median selling price increase over the previous month; Northland, Auckland, Waikato/Bay of Plenty, Otago, and Southland. Hawkes Bay, Manawatu/Wanganui, Taranaki, Wellington, Nelson and Central Otago Lakes all saw their media selling price drop, with the median remaining static in Canterbury/Westland.

While median selling prices remained strong and the number of properties sold increased, so to did the national median number of days to sell, increasing from 34 days in April 2006 to 38 days in May.

Morley said, “Houses took a little longer to sell in most regions this month with the national median days to sell moving out four days. However, even at 38 days to sell we are sitting below the average for the past 10 years which, for the month of May was just over 40.

“Looking back to May 2001, the national median for days to sell a property was 55, which demonstrates that while the market is not as buoyant as it was through 2004 and 2005; it remains in good heart.”

The Auckland region median was up from $387,250 in April to $400,000, some 8.10% higher than the May 2005 median of $370,000. Auckland region sales were up for the month, from 2,450 in April 2006 to 2,981 in May.

The Auckland metropolitan median went from $390,000 in April this year to $405,000 in May with the number of sales also up for the same period from 2,186 in April to 2,663.

Wellington region saw an increase in the number of sales, up markedly from 973 in April to 1,212 in May, but the median selling price dip from $335,000 last month to $315,000 in May. Despite this, the Wellington median selling price is now 10.52% higher than in May 2005 when it was $285,000.

In Canterbury Westland region the median remained on $275,000 but the number of properties that changed hands was up from 1,076 in April to 1,522 in May 2006. The region’s median has also gone up 11.11% in the year from May 2005 when it was $247,500.

In terms of annual growth Manawatu/Wanganui is ahead with a 17.03% increase for the year to May 2005, following by Waikato/Bay of Plenty with 15.51%, and Otago third with its 15%.

Sales of properties worth between $400,000 and $599,999 increased from 1,455 in April to 1,895 in May, and were also up on the May 2005 figure of 1,519.

Properties selling for more than $1 million were up from 179 in April to 200 in May, and higher than the 169 sales recorded in May 2005.

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