Real estate sector in 'recovery' mode – REINZ

House sales eased in June in keeping with seasonal trends, the Real Estate Institute says.

While sales were down by 14.5% compared to May they were still well ahead of June 2011 with 6135 sales, an increase of 906, or 17.3%.

The national median house price rose $3000 to a record high of $372,000.

This is up 3.3% compared to June last year, with Auckland maintaining the $500,000 record median set last month.

Compared to June 2011, Canterbury/Westland enjoyed the biggest sales jump, up 56%, followed by Northland, up 39.1%, and Hawke's Bay, up 25.6%.

Auckland’s sales increase over June 2011 was 15.7%. Only Taranaki recorded a fall in sales volume compared to June last year.

Central Otago Lakes recorded the highest lift in prices for June 2012 with an increase of 11.5%, followed by Northland on 10.0%, and Wellington with 6.9%

The REINZ Stratified House Price Index, which adjusts for some of the variations in mix that can impact on the median price, is 5.3% higher than June 2011 and is now also at a new record level.

The House Price Indices for Auckland and Christchurch are also at new record highs in June.

Keen buyer interest in Auckland and Christchurch made up about half of national activity and drove the market to new highs, Real Estate Institute chief executive Helen O’Sullivan says.

She cited a shortage of properties available to meet buyer demand that is most acute in Auckland, where new home building is still sluggish, and in Christchurch, where the earthquake recovery is slowly gathering speed.

The national median days to sell improved by one day in June compared to May, from 38 to 37, and improving by seven days on June 2011.

Canterbury/Westland had the shortest days to sell at 31, followed by Auckland with 32, while Central Otago Lakes recorded the longest number at 81 days, followed by Northland with 80 and Taranaki with 61.

Ms O’Sullivan says the market is not “booming” but “recovering”.

# When inflation is taken into account the market is about 12% below the market height of late 2007.