More sales but prices stagnant in provinces

Almost 25 per cent more properties sold in May this year compared to the same time a year ago, data from realestate.co.nz shows.

Wednesday, June 20th 2012, 12:00AM

by Susan Edmunds

The website has released its Property Pulse factsheet which shows more than 7000 sales nationwide in May 2012. The number of new listings in May also increased 17% on May 2011.

But chief executive Alistair Helm said it was not a sign of a boom. “Listings remain in short supply and given the slowdown seen seasonally across the winter months, this shortage will only become more acute. This could lead to pressure of demand as we head into spring.”

The national mean house price increased 6% to $381,950, according to the realestate.co.nz statistics.

The level of new listings coming onto the market in May at 11,544 was up significantly from April, and up 17% as compared to a year ago.

But while an increase in sales was consistent across the country, it was matched by an increase in prices in only the bigger centres. “It has certainly been a very active May, one of the strongest for quite a while. These sales increases are quite consistently seen around the regions.”

Helm said: “When it comes to selling prices, the picture is different, with steady growth across most of Auckland and certainly in regions like Christchurch, Nelson. But the vast majority of regions are not showing much long-term movement, with some, like Gisborne, on the way down.”

The former Auckland City had a 29% increase in sales, to 948 in May 2012. Its median sale price increased 10% to $577,000. North Shore was similar with a 25% increase in sales and an 8% lift in the median house price. Christchurch had a 58% increase in sales and a 5% lift in prices.

But while Northland had an increase in sales of 13%, prices slipped 2%. Waikato had 15% more sales but prices dropped 1%. Bay of Plenty sales were up 9% although prices declined 1%. Hawke’s Bay sales were up 21% and prices increased 1%. Otago sales increased 18% but the sales price dropped 3%.

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