Rotorua Property Investors' Association

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More record prices recorded

The number of houses sold in May was 7.5% up on the same time last year but sellers are still not being tempted into the market in numbers great enough to ease the supply shortages, the latest Real Estate Institute figures show.

There were 7714 houses sold last month, the highest number in any May since 2007.

The national median price increased $1500 from April but is still $8000 below the record set in March.

Chief executive Helen O’Sullivan said Christchurch and Auckland prices were still skewing the national picture. Auckland had the biggest median increase compared to the same time a year ago and Canterbury reported the third-largest increase.

The two regions accounted for 82% of the $23,000 increase in the national median between May 2012 and May 2013.

She said other centres’ gains had been modest.

“There are too few houses coming to market in the Auckland region, creating an imbalance between supply and demand and driving up house prices at both the regional and national level. The number of residential properties available for sale is falling back to levels last seen when house prices fell in 2008 – 2009.”

Since 2011, the annual increase in house sales in Auckland has been about 20% but new listings have only increased about 3%.

O’Sullivan said the current shortage was expected to continue at least until spring.

Auckland posted a new record median of $565,000, as did Canterbury/Westland with $360,000 and Nelson/Marlborough with $353,625.

About 20% of sales nationally were by auction, but almost 40% of Auckland sales were done under the hammer.

The REINZ housing price index increased 0.7% in May, to another record high.



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