27 Jul Signs of life in property market
An indicator of the housing market improved to its best reading in two years, as the economy struggled to escape a recession that began at the start of 2008.
The Mike Pero Mortgages-Infometrics property cycle indicator climbed to a positive 4.01 in June, from 0.31 in May, the first time it has been at that level since mid-2007.
The indicator includes three main factors — changes in the number of houses sold, changes in price, and the time taken for houses to sell.
June’s median house price of $340,000 was unchanged from a year earlier, the best result in 15 months and halting the slide in house values, Mike Pero Mortgages chief executive Shaun Riley said today.
“The average time for a house to sell reduced by 12 days, again a significant improvement and the biggest year-on-year change since 2003.
“The third indicator measure, the number of houses sold, was up by 40 percent year-on-year,” Mr Riley said.
Auckland in particular was leading the market, with a regional indicator of positive 4.87, the strongest in the country.
Canterbury was also showing strength with a regional indicator of positive 3.6, the best result in the South Island.