The property market in New Zealand continued to recover in April with prices rising for a third consecutive month. Figures from the Real Estate Institute of New Zealandââ¬â¢s (REINZ) house price index showed values rose by 1.1 per cent between March and April, following a 0.5 per cent rise in March and a 2.3 per cent increase in February.
House prices in New Zealand starting to recover
The national median house sale price, which varies from the index, was NZ$360,000 (ã175,200), NZ$4,000 (around ã2,000) higher than the same month a year ago.
REINZ Chief Executive Helen O’Sullivan said: ââ¬ÅThe April results reflect a steady market across New Zealand with signs of a lift in prices in the South Island, and Auckland prices still solid with limited supply.
“The results reflect some cautious optimism with no great outbreak of smiles, but certainly fewer frowns.”
Sales of properties were up by 3 per cent in March and the average number of days to sell a property was 43, compared to 40 days in April 2010.
New Zealand property market ââ¬Ëfinding its feetââ¬â¢
Goldman Sachs economist Philip Borkin believes that the figures are pointing to a gradual recovery in the property market with recent gains being consolidated. Mr Borkin said: “The stabilisation does open the door for households to begin slowing the pace of deleveraging, potentially resulting in modestly improved household consumption growth.ââ¬Â
The Reserve Bank of New Zealand (RBNZ) also believes that the housing market in the country looks steady. RBNZ Governor Alan Bollard said in the central bank’s latest six-monthly financial stability report: “There’s signs the housing market has bottomed out and is just starting to show a bit of growth, but we’re not seeing the preconditions of a rise in house prices or a rise in debt exposure.ââ¬Â
