Review of the property sales market in the Motueka area for June 2011

June 16th
By Alan Atkins, Ray White Motueka

[Editor's note: Ray White Motueka is the Principal Sponsor of Motueka Online, and one item of assistance it provides is a regular, general update on the state of property sales in the area. The reports do not contain any promotion of Alan's company, but are provided purely for informational purposes]

The national housing market recorded a further lift in volumes during the month of May, up 779 on the number of sales reported for April and 560 more than last May, according to REINZ figures. The national median house price at $350,000 was equal to the same month of last year, but down by $10,000 from April 2011.

The Nelson/Marlborough region sales volumes rose 23.6% in May 2011 compared to April 2011, although only up 2.6% compared to May 2010. The region's average days to sell remained steady at 57 days in May 2011 compared to April 2011.

On the economic front, the Reserve Bank of New Zealand held the official cash rate steady at 2.5% at its June meeting. It appears that with consumer spending remaining subdued and the economic data suggesting that inflation will remain constrained that the OCR will stay on hold for the remainder of 2011. This will have the effect of keeping the mortgage interest rates that the current low level.

Locally we had a small increase in sales volumes from April to May and this was accompanied by a lift in the median price from $282,000 to $296,000. The sales activity for the month was still all under $500,000, but there is buyer interest for properties above this level; however they tend to be conditional buyers which are delaying the confirmation of contracts.

Nice to see that the wet weather may have come to an end, a few clear sunny days should see help maintain the good selling volumes we have seen over the last couple of months.

[Statistics quoted in this article are sourced in-house and from REINZ, while we endeavor to keep the figures as accurate as possible they cannot be guaranteed.]

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