March 2011 - Lower Interest Rates Set To Help Visi

Hello and welcome to my March 2011 newsletter.

The national housing market staged a modest recovery in February in terms of both prices and volumes during the month.

“Overall, the data is a bit of a mixed bag” said REINZ CEO Helen O’Sullivan, “February’s transaction volumes were always going to be an improvement on January, but the improvement in the raw medians in most districts as well as in the stratified median prices is a positive sign.”

“The recovery in transaction volumes in Auckland and Manawatu/Wanganui is encouraging, with both areas recording higher numbers of transactions in February 2011 than in the same month of 2010. In fact, Auckland’s transaction volumes were marginally higher – by just one transaction – than in February 2009. On the less positive side, the overall transaction numbers are still 4.3% below the February 2010 level, and median days to sell increased nationally and in most areas.”

Reports from members indicate that although rents are rising in key urban areas and there is a continuing shortage of housing stock, particularly in Auckland, buyers are still being cautious. This is evident in the increased days to sell, which measures the time between the property being listed and an unconditional sale being completed. Equally, vendors are not under pressure to sell and landlords are successfully increasing rents, albeit by small increments.