Home' Advocate Communications : Fiordland Advocate 2 June 2011 Contents Fiordland Advocate
Page 14 | 2 June, 2011
Southland recorded the second
strongest increase in house prices
on an annual basis of anywhere
in the country -- the April figures
revealing that only Central Otago
Lakes region recorded a greater
increase. Median house prices in
Southland rose by 4% to $193,250
in April, compared to March -- up
4.5% on April last year. April prices
have only betered this median
once in the past 10 years. That was
$215,000 in 2008. The median price
of sectons sold in April this year
The median price is the midpoint
in the sales range, i.e. half of the
propertes sold for more and half
sold for less than this price.
There were a total of 126
unconditonal sales in April, the
change in volumes beter than the
natonal result compared to March
but weaker when compared to April
last year. The total value of those
residental sales was $27,945,000.
However, it does appear to be
taking longer for houses to sell in
Southland. The median number
of "days to sell" (measuring the
number of days from listng date to
unconditonal date) reached 50 in
April compared to 36 days in March
and 37 days in April last year. This
increase was the worst change of
anywhere in the country and is
the longest it's been for the April
figures in 10 years.
On the national front
Across New Zealand the total
value of residental sales, including
sectons, rose to $2.21 billion in
April, compared to $2.62 billion in
March and $2.17 billion last April.
Natonally house sales were up
3% compared to March. Across
New Zealand 4987 unconditonal
sales were reported for the month
of April with the median house
price easing by $5000 to $360,000.
However, this figure is up $4000
when compared to April last year.
Real Estate Insttute of New Zealand
chief executve Helen O'Sullivan
said volumes across the country
were stronger than expected on a
seasonally adjusted basis.
"The results reflect some cautous
optmism with no great outbreak of
smiles but certainly fewer frowns,"
The Auckland region recorded a
new all-tme high median house
price in April of $479,500. It also
recorded a drop in the number of
days taken to sell -- 34, the shortest
of anywhere in the country,
reflectng a shortage of listngs in
this market. The natonal median
was 43 days in April, up from 40
days at the same tme last year.
Can we afford it?
Southland remains the most
aﬀordable region in the country to
buy a home.
Massey University's Home
Aﬀordability Report for the quarter
ended February 2001 shows the
all-district natonal aﬀordability
index improved by 5.2%, largely
caused by a decrease in the median
house price, a decrease in the
average weekly mortgage interest
rate and an increase in the average
Seven of the 12 regions showed
improvements in aﬀordability
during the quarter but Southland
was not one of them. Although
it retains its place as the most
aﬀordable region with an index of
65.6% of the natonal average, the
report says Southland aﬀordability
deteriorated by 1 percent.
According to the latest Roost
Home Loan Aﬀordability Report,
in Southland it takes 30.3% of
one median income to pay the
mortgage on a median priced
house purchased in April. Compare
that to the 66.9% required in
Auckland. Above 40% is considered
The report says the median weekly
take-home pay for a typical buyer
in Southland was $740.70 in April,
up 7.5% on April 2010 and weekly
disposable income was up by
just over $70 on April last year.
Five years ago the median weekly
take-home pay was $587.19. It
also notes that last year's income
tax cuts have improved home loan
aﬀordability by more than 2%.
Other factors favouring aﬀordability
are lower interest rates.
But the measure shows that the
typical (assumed to be in the 30-34
age group) buyer's income is too
low by itself to aﬀord the mortgage
payments on a median priced
home, even with a 20% deposit.
However, it notes they may find a
lower quartle house is aﬀordable
and that a family with more than
one income may stll find the
median house price aﬀordable.
Based on a standard household
profile, it now takes 20% of the
median take-home pay to service
a mortgage of a median home
purchased in April.
"Median-priced housing is
aﬀordable for families in Southland,
when both adults work," the report
Sources: Massey University Home Affordability Report
Roost Home Loan Affordability in Southland
REINZ Property Market Report
What's happening on the local property scene?
SOUTHLAND AT A GLANCE (APRIL 2011)
93 houses sold in Invercargill with a median sale price of $185,000
18 houses sold in Gore with a median sale price of $203,500
5 houses sold in Riverton with a median sale price of $238,000
5 houses sold in Winton with a median sale price of $225,000
5 houses sold in Te Anau with a median sale price of $300,000
Things are looking up in the Southland housing market, according to the latest Real Estate Insttute of New Zealand (REINZ) property market report.
Links Archive Fiordland Advocate 26 May 2011 Fiordland Advocate 9 June 2011 Navigation Previous Page Next Page