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Property sales in New Zealand surged by over 40% last month, latest data shows
Residential property sales in New Zealand increased by 42.5% in February compared to the previous month while prices were up 0.9% month on month. The data from the Real Estate Institute of New Zealand also shows that sales are up 12.6% on February 2014 and the month saw the highest February sales level since 2007. The national median price was $430,000 for February, an increase of $15,000 or 3.6% compared to February 2014 and an increase of $4,000 from January. The surge in sales volumes in February compared to January was stronger than is normal, but this partly reflects a catch up after there were fewer sales than expected in January, according to REINZ chief executive Colleen Milne. But it is Auckland that is leading the growth with a rise of 14% in median prices from $592,000 to $675,000. In effect there has been no increase in the median price for New Zealand, excluding Auckland, between February last year and February just gone. ‘This underlines again the view that there are two distinct real estate markets in New Zealand, Auckland and the rest of the country. While politicians and policy makers focus on solutions to the Auckland region’s housing supply problems, they will also be right to reflect on the need to ensure that any national application of new policies doesn’t have an adverse effect on the rest of the country,’ said Milne. All regions recorded an increase in sales volume compared to January, with Waikato/Bay of Plenty recording the largest increase, of 61.8%, followed by Canterbury/Westland with 58.6% and Hawkes Bay with 54.3%. In comparison with February 2014, nine regions recorded increases in sales volume, with Waikato/Bay of Plenty recording the largest, of 40.6%, followed by Otago with 21.8% and Northland with 17.1%. Overall seven regions recording an increase in prices and but on a seasonally adjusted basis the national median house price eased 0.5% compared with January and rose 3.6% compared to February 2014. Auckland recorded the largest percentage increase in median price compared to February 2014, at 14%, followed by Central Otago Lakes at 12% and Otago at 6.8%. Compared to January, Otago recorded the largest percentage increase in median price, at 7%, followed by Manawatu at 5.5% and Nelson/Marlborough at 3.4%. The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can affect the median price, is 6.1% higher than in February 2014, at 4,069.7. The Auckland Index rose 15.4% compared to February 2014, the Christchurch Index 6.1% and the Wellington Index was flat. Homes took a median of 41 days to sell in February, one day less than for January and the same as for February 2014. Seven regions saw an improvement in the number of days to sell compared to January 2015, with Taranaki recording an improvement of 19 days, Otago 11, and Auckland and Northland two. Otago recorded the shortest median days to sell in February, at 31,… Continue reading
More people in UK back new homes being built in their area, new survey shows
Support for new house building in the UK has almost doubled in the past four years and there is more support for aspiring home owners, new figures show. The data from the British Social Attitude survey reveals that 56% of those questioned support new home being built in their area, some 27 points higher than in 2010. Similarly, the numbers opposed to local house building have more than halved during the same period, from 46% in 2010 to just over one in five now. Housing Minister Brandon Lewis welcomed the figures and said that house building and efforts to help aspiring home owners are central to the government’s long term economic plan. He pointed out that over the past year, housing starts have increased by 10%, while the numbers of first time buyers are at their highest for seven years. ‘Since 2010 the government has scrapped top down targets that pitted neighbours against developers, and replaced them with locally led development through local and neighbourhood plans,’ said Lewis. Councils have also received over £3.4 billion in New Homes Bonus payments to reward communities for building new homes and in the year to October, planning permission has been granted on 240,000 new homes across the country,’ he added. The figures show that those strongly supporting new house building in their area has tripled, from 5% in 2010 to 16% in 2014, while strong opposition has fallen by nearly a third over the same period. The figures also show strong support for efforts to help aspiring home owners, with 38% of those surveyed citing financial support for first time buyers as the best thing the government can do to make homes more affordable. Lewis also pointed out that to date, the Help to Buy scheme has helped over 88,000 households to buy with a fraction of the deposit they would normally require and the new Starter Homes initiative will also enable young first time buyers to purchase a newly built home with a 20% discount. The survey also shows that another 27% backed moves to allocate funding to councils and housing associations to build more homes and since 2010, nearly 217,000 affordable homes have been delivered while council house building starts are at a 23 year high. Continue reading
Property prices in England and Wales up 0.5% month on month, latest index shows
Residential property prices in England and Wales are £34,000 above their pre-crisis high of February 2008, according to the latest house price index to be published. With a monthly rise of 0.5% the average prices stands at £273,528 with the annual rate of growth at 6.8% but sales have fallen, down 9% compared to a year ago, the data from Your Move and Reeds Rains shows. When London and the South East are excluded from the calculation then the average annual change is 4.6% with London still boosting overall averages, the data also shows. Adrian Gill, director of Reeds Rains and Your Move estate agents, pointed out that while average house prices are currently 6.8% or £17,340 higher than they were last year, this is the smallest annual increase witnessed for 14 months. He also said that while home sales are down 9% year on year, there is still plenty of demand and February still marks a 4% improvement on January activity levels, and in recent weeks agreed sales have climbed above 2014 levels. He also explained that market conditions have calmed in London and the South East. Their combined lead on the rest of the UK hit a summer peak in July 2014 when these areas increased the wider England and Wales annual change to 5.4% higher than it would have been otherwise. But in February this growth gap has fallen to less than half at 2.2%. ‘London has already had the first taste of added pressure placed on prime property in the form of revised Stamp Duty, and the £1.5 million to £5 million sector of the market has also been hit by cold feet in the run up to the general election with the threat of a potential mansion tax,’ said Gill. ‘This let up of high end activity has brought down the average London house price, but beneath the surface, the lower rungs of the ladder are thriving. For instance, the borough of Newham, where the typical property value currently stands at £273,727, saw an enviable 2.1% monthly price rise, more than double the overall 1% average London price jump,’ he explained. He also pointed out that in terms of annual growth, more affordable areas like Barking and Dagenham with growth of 16.5%, Bexley up 15.6% and Waltham Forest up 16.8%, are doing well, coming in ahead of the year on year improvements seen in high end areas like Kensington and Chelsea, where prices have fallen 7.4% in the past 12 months. ‘In the south of the country overall we’re seeing a very orderly market, with buyers and sellers on more of an even keel. Rates of annual growth have slowed across the board in England and Wales, but it is regions with the lowest average property prices which are dragging their feet,’ Gill added. The North saw the smallest annual uplift in January, with home values just 1.9% higher year on year, while in Yorkshire and The… Continue reading
