House sales reach eight-year high

Housing prices dipped 3.5%, to $640,000, for March, while the overall Central Otago Lakes price...
Housing prices dipped 3.5%, to $640,000, for March, while the overall Central Otago Lakes price gained 20.7%, to $550,000. Photo by Guy Williams.
National house sales swelled 20% during March to 8803 across the country, the highest number for any month for almost the past eight years.

The number of homes which sold around the country for more than $1 million was up 71%, from 597 homes in March last year to 1023, representing 11.6% of the 8803 houses sold.

Auckland house prices continued their advance, up 13% to $720,000 compared with a year ago while Central Otago Lakes booked a strong rise, up 20.7% on a year ago, to $550,000.

The national median price rose 8% to $475,000, according to data released by the Real Estate Institute of New Zealand (REINZ) yesterday.

However, when Auckland's figures are stripped from the national median price, that rose just 1.4%, or $5000, to $350,000 on a year ago.

Westpac senior economist Dominick Stephens said following last year's ''soft patch'', the country's housing market was ''in comeback mode''.

Auckland's prices were ''booming'', while elsewhere house prices were rising ''at a more modest pace''.

Otago's median price reflected many areas in the rest of the country, being flat or in decline, down 2.2% on a year ago to $259,168, while the separate Central Otago Lakes price gained 20.7% to $550,000, which was attributable to Central homes, as opposed to Queenstown.

Compared with last year, the two sub-indices saw Central prices up almost 7% to $433,000, while Queenstown was down 3.5%, to $640,000.

REINZ chief executive Colleen Milne said rental rates in the Central Otago Lakes region were on the rise and were attracting investors, who were continuing to return to the market, but the number of listings was ''tight'', which was ''indicating that demand was noticeably stronger than supply''.

Central Otago Lakes sales rose 26.7%, from 116 to 147, with Queenstown up 62% to 68 sales and Central up 7%, to 79 sales.

REINZ regional director Liz Nidd, of Dunedin, said sales volumes around Otago rose against both February and March last year, the latter period up 6.6% from 259 homes to 276.

However, the overall Otago median price was down 2.2% to $259,168.

The sub-indices showed South Otago down 19.6% to $135,000, North Otago down 6.5% to $215,000 and Dunedin unchanged at $280,000.

''There are indications that more buyers are coming from outside the region, which is lifting demand,'' Mrs Nidd said.

She noted the number of listings had increased, and that first home buyers were ''continuing to become more active'' in the market.

simon.hartley@odt.co.nz

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