House sales drop to 10-year low

The number of homes sold in New Zealand has plummeted to a 10-year low for July, with the housing market 'stuck in neutral' at best.

The Real Estate Institute of New Zealand's Housing Price Index fell 1.2 per cent in July when compared with the month prior, but rose 1.8 per cent from July last year.

Nationwide sales slipped from 4575 transactions in June to 4411 last month, the lowest July total in 10 years.

Goldman Sachs JB Were economist Philip Borkin said the property market was "stuck in netural at best".

"We expect this theme to continue for the foreseeable future, which also portends a sluggish residential investment and consumer spending backdrop," he said.

Auckland was the only major centre to record an increase in prices from June, up $5000 to $450,000.

Prices were down from $405,000 to $385,000 in Wellington and in Christchurch city the median residential property price fell from $340,000 to $328,250 during the same period.

Prices also fell in the Central Otago Lakes region, Canterbury/Westland, Waikato Bay of Plenty, Hawkes Bay and Nelson/Marlborough, but were up in Otago, Taranaki, Manawatu/Wanganui and Southland.

To read the full NZ Herald article, click here

Posted: 10 Aug 2010

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