September 12th, 2010
Expect REINZ (Real Estate Institute of NZ) to officially release New Zealand home sales figures for the month of August 2010 any day now.
There was a definite dip in asking price achievement this past month, and an associated extension to the “days taken to sell” numbers. It’s often the case that these two go hand in hand anyway, so if ones “off key” then it’s highly probable that the other will be too.
Not always the case, but generally the longer the property is on the market the greater the difference between asking price and the sold price finally achieved.
The above chart from the latest NZ Property Report illustrated the story of our inventory levels better than words.
As of this morning, the number of Nelson Real Estate properties for sale on www.realestate.co.nz shows at 352, a figure that has remained pretty static for a month now.
Therefore, we haven’t seen any evidence of any seasonal increase in inventory.
In a nutshell that’s what I spoke about earlier this month whilst reviewing the NZ Property Report from a Nelson perspective, where I talked about this inventory situation in Nelson that was also highlighted in the report.
Notably, again no 1 bedroom properties were transacted in August, however at the other end of the scale there were 3 x 5 bedroom and 1 x 8 bedroom properties sold.
The Section Situation
As is want to happen with section prices, the end result on paper as an unconditional sale is typically many months down the track from the original sale intention, 224, title releases, etc. In a way that partly explains why for the first time in a long time, section sale prices achieved below asking prices.
A healthy 12 sections sold in July, however that’s not telling the whole story.
For example, after 2 years on the market, one sold for nearly 25% less than asking price indicating some pricing pressure evident locally. Another sold at asking price after 1059 days on the market. In fact 4 sections had been on the market for over 230 days. One suspects that their owners have taken the cash rather than wait to hold out for a longer period.
On unknown on the section/building front will be any effect on current locally based tradesman, and whether they may find better opportunities down south. Any correspondingly shortage then on the local labour market, could translate into changes in timeframes for the constructions of new homes locally, just completely unknown really.
14th Sept 2010 UPDATE: Here’s what REINZ said today in there monthly press release re our region.
In Nelson City the median price increased from $312,000 in July to $330,000 last month (August 2009: $305,000) and sales volume rose from 59 the previous month to 63 in August, though still less than the 73 in the same month last year.
The median price of a Nelson Council Zone house rose from $332,000 in July to $336,500 last month, but is down on the August 2009 median of $346,250. The number of sales eased to 104 from 113 in July (August 2009:142).
Echoing whats happening on the streets, REINZ spokesman Bryan Thomson said “The days to sell statistics in particular suggest underlying market demand in a number of locations is being frustrated by potential sellers holding off from listing their properties for sale.”