The number of residential property sales last month was the lowest for a July month in a decade, Real Estate Institute of New Zealand (REINZ) figures show.Nationwide sales slipped from 4575 in June to 4411 last month, the lowest July total in 10 years but
The number of residential property sales last month was the lowest for a July month in a decade, Real Estate Institute of New Zealand (REINZ) figures show.
Nationwide sales slipped from 4575 in June to 4411 last month, the lowest July total in 10 years but higher than the record low of only 3666 sales last January.
The national median price for July was $349,000, down from $352,500 in June but 2.6 percent up on the $340,000 in July 2008 and 2009.
As measured by the REINZ monthly housing price index, nationwide prices fell by 1.2 percent in July from June. In the three months to July, the index shows housing prices down by 1.1 percent.
Compared to 12 months earlier, the REINZ index -- basically an average of sale prices for common groups -- was up 1.8 percent.
Deutsche Bank chief economist Darren Gibbs said that after allowing for seasonal and trading day factors the number of house sales was virtually unchanged in July from a month earlier, and so remained at historically very low levels.
House prices now appeared to be heading lower, Mr Gibbs said.
Goldman Sachs economist Philip Borkin said the housing market was at best stuck in neutral and would remain that way for the foreseeable future.
While there were sound reasons to expect reasonable falls in house prices given the stretched fundamentals, there was a lack of triggers to drive such an outcome given that the labour market was improving, even if only modestly.
Recent falls in fixed mortgage rates were unlikely to provide a kick-start to activity in the near term. Rather they would have more of a stabilising influence, Mr Borkin said.
ASB economist Jane Turner expected house prices to fall around 3 percent during the next year.
REINZ spokesman Peter Thompson said the pattern was similar to last month with sales volumes down but prices remaining stable, contradicting predictions of a falling market.
"Good sales are still being made and properties priced right are attracting a lot of attention and are selling," Mr Thompson said.
The national median number of days to sell was 45 for July, the same as in June but more than the 37 days of July 2009 and better than the 58 days in July 2008.
