House Sales Falter

Kapiti misses out on housing ‘spring Flush’

By Local Govt. correspondent Jeremy Smith

Kapiti missed the traditional ”spring flush” of residential house sales in October.

Compared with the previous month, median prices were down and the number of actual sales was significantly less.

Some numbers also softened compared with the same month last year.

All up, 70 properties sold in Kapiti during October, compared with 89 in September, a sharp drop of more than a fifth.

Median price down

And the median price was 487,000 down from $552,000 in September.

The Real Estate Institute also gives figures going back 12 months. These show the October 2016 median price in Kapiti was $466.00, or $21,000 lower than this year. But the number of sales in 2016 was 91, well ahead of  October 2017, with 70.

Houses in higher-priced Wellington

In the overall Wellington area, Wellington city showed a sharp drop in median prices between September and October but the volume was up. Porirua showed an even bigger drop in the median price- it was not much lower than Kapiti at $475.000 – but the number of sales went up in the month.

To the north in Horowhenua, official figures show that house median prices went up 13.5% in the month to reach $272,000 with volumes up 25%.

The Reserve Bank is expected to ease its Loan to Value ratios (LVR) soon making it easier for people to get into the housing market.

If REINZ CEO  Bindi Norwell’s comments are typical, easing LVRs would be the ultimate present for real estate agents and home seekers to welcome 2018.

I think the article needs context. For house sales to rise, there needs to be a corresponding rise in properties offered for sale.