The New Zealand residential property market median selling price eased slightly during August, due largely to increased demand for less expensive properties coupled with a slower level of activity in upper end properties, according to the National President of the Real Estate Institute of New Zealand (Inc), Mr Howard Morley.

However sales volumes improved as the market moved into its customary spring upturn in activity, the Institute reported.

The national median selling price fell slightly from $249,000 in July 2004 to $247,000 in the latest month, compared with the June median of $243,000.

According to Mr Morley, “while the market appears to have retreated, it has to be considered that July saw a strong increase in the median especially because of a big jump in Auckland median prices. This month we have seen a bit of levelling off, but the trend is still pretty much intact.”

Recent interest rate increases arising from the Reserve Bank’s tightening of the Official Cash Rate may have had some effect, “but with an increasing number of people moving to fixed rates, especially earlier this year when rates began their increase, the potential for OCR increases to affect the confidence of the house-buying public is increasingly limited.”

Of the 11 regions, seven reported increases (five last month) two recorded falls (five in July) and two were unchanged (one in July).

The impact of the Auckland market on the national market was again apparent with Auckland being one of the two regions to record a decrease with its median, declining from $340,000 to $336,500 in August, after a strong showing in July where it rose from the June figure of $323,710.

Sales volumes nationally were up from 7,802 in July to 8,191, still well down on the August 2003 sales of 10,193. Auckland accounted for most of the increase with sales up from 2,609 in July to 2,888 in August.

Around the country, Northland saw an increase in its median from $183,500 in July to $195,000 in August while Waikato/Bay of Plenty/Gisborne also experienced an increase from $200,000 to $210,000 in August.

Hawkes Bay was up from $190,000 to $211,500, but on reduced volumes, and Manawatu/Wanganui was unchanged at $140,000, as was Wellington at $265,000.  Taranaki was the other region to show a decline with its median down from $176,500 to $161,050.

Nelson/Marlborough rallied after falls earlier this year with a median price increase from $262,000 to $270,000 and Canterbury/Westland was up from $216,000 to $218,750.  Otago was up slightly from $180,000 to $183,000 while Southland recorded a good gain from $118,000 to $126,750.

Days to sell lengthened nationally from 30 to 31.

On a year-by-year basis the New Zealand median is up 14.88 per cent with Canterbury/Westland and Otago showing the strongest gains at 34.61 per cent and 38.11 per cent respectively.  Auckland is now showing the smallest annual gain at 6.82 per cent.

Around the major centres Auckland City saw its median fall from $385,000 to $365,000 and Metropolitan Auckland was also down from $343,500 to $339,000, although volatility in apartment sales has affected the medians for some time, Mr Morley noted.

Hamilton City was up from $216,000 to $223,000 and Tauranga was up from $266,500 to $283,500. Central Wellington was down from $332,000 to $318,510. Christchurch City was up from $235,000 to $240,000 and Dunedin City was also up slightly from $185,000 to $186,500.