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Volatility is a market reality - REINZ

Contributor:
Fuseworks Media
Fuseworks Media

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 66 more lifestyle property sales (4.0%) for the three months ended April 2022 than for the three months ended March 2022. Overall, there were 1,710 lifestyle property sales in the three months ended April 2022, compared to 2,674 lifestyle property sales for the three months ended April 2021 (-36.1%), and 1,644 lifestyle property sales for the three months ended March 2022.

8,404 lifestyle properties were sold in the year to April 2022, -1,924 (-18.6%) fewer than were sold in the year to April 2021. The value of lifestyle properties sold was $10.31 billion for the year to April 2022.

The median price for all lifestyle properties sold in the three months to April 2022 was $1,087,500 and was $207,500 higher compared to the three months ended April 2021 (+23.6%). The median price for Bare land Lifestyle properties sold in the three months to April 2022 was $510,000 and was $60,000 higher compared to the three months ended April 2021 (+13.3%). The median price for Farmlet Lifestyle properties sold in the three months to April 2022 was $1,276,500 and was $236,500 higher compared to the three months ended April 2021 (+22.7%).

Brian Peacocke, Rural Spokesman at REINZ, says: "Sales data for the three-month period ending April 2022 indicates a lift in sales numbers from the equivalent period ending March 2022, but a dramatic drop of 36% from the three-month period ending April 2021, 12 months ago.

"Examining figures on a month-by-month basis, however, portrays a more up-to-date picture of the market with lifestyle sales for April 2022 being down 30% from March 2022 (480 vs 677).

"Availability of quality property remains an issue, but a constant theme filtering through indicates the financial sector is having a major influence on the market.

"Close scrutiny by financiers of an applicant's financial position including affordability, job security and resulting debt servicing is a significant factor, as is the diligent examination of both the soundness of the subject property and relevant registrations on the certificate of title for the associated land.

"Meeting that test remains the challenge," he concludes.

A brief summary of the regions around the country includes the following:

Upper North Island

Northland reasonably steady during February and March, but some slippage in April in both volume and price 

Auckland  a big drop in sales in April compared to March, back to the results for January, but a solid lift in the median price

Waikato similar volatility as in the other areas with a 42% drop in sales numbers; the median price eased marginally

Bay of Plenty/Rotorua similar to last month - steady on numbers and price

Gisborne/Hawke’s Bay very steady on both sales volumes and price

Lower North Island

Taranaki a 40% drop in sales from March; holding par on price

Manawatu/Whanganui a substantial 46% slump in sales; a comfortable 10% lift in the median price

Wairarapa/Wellington a marginal easing in sales; a welcome 38% lift in the median price Upper South Island

Nelson/Marlborough down 23% in sales; a slight lift in the median price

Canterbury a slight lift in sales volumes, particularly in the Wamakariri district; a small improvement in the median price

West Coast a big drop of 63% in sales; the median price dropped by 24%

Lower South Island

Otago sales backed off by 25% with fewer sales than normal in the

Queenstown/ Lakes district; a similar reduction in the median price

Southland a significant 46% slump in sales volumes with a resulting 43% drop in the median price

No regions recorded an increase in sales compared to April 2021, with West Coast (-18 sales) and Taranaki and Southland (-22 sales) observing the smallest decreases. Auckland (-224 sales) and Waikato (-162 sales) recorded the biggest decreases in sales in the three months to April 2022 compared to the three months to April 2021. Compared to the three months to March 2022, eight regions recorded an increase in sales.

13 regions saw the median price of lifestyle blocks increase between the three months ending April 2021 and the three months ending April 2022. The most notable examples were in Otago (+54.9%) and Southland (+41%) with the smallest increases being in Gisborne/Hawke’s Bay (+0.3%) and Manawatu-Whanganui (+9.4%).

The median number of days to sell for lifestyle properties was six days less in the three months to April 2022 than in the three months to April 2021, sitting at 43 days. Southland (34 days) recorded the shortest number of days to sell in April 2022. Otago (56 days) recorded the longest number of days to sell.

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