Categorized | International

Sales Increase but Prices Fall in New Zealand Property Market

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The residential real estate market in New Zealand experienced a strong twenty percent increase in sales during the year 2011. Despite the increase in sales, however, prices dropped more than three percent on average.

The sales volume was the strongest it has been in more than five years for many regions in the country, particularly in Auckland, Taranaki, and Otago. Only two regions in the country experienced a decline in sales volume over the past year.

Prices did increase in the past month for many of the regions, though during the year as a whole, prices experienced a slight decline.

December marked one of the strongest months that New Zealand has had in years. In fact, some areas experienced sales increases of more than forty percent for the month of December.

As the number of sales continues to rise at an unprecedented pace, it is likely that prices will once again start to increase. Demand is starting to outpace supply, which will thus positively impact price growth across the country.

During the month of December, regions such as Auckland and Christchurch experienced price increases of five percent or more. In Auckland, the average home price jumped to more than four hundred and eighty thousand dollars. The price of the average home in Christchurch is now up to roughly three hundred and fifty thousand dollars.

Analysts believe that the New Zealand residential real estate market will continue to improve, and that the overall increase in sales will lead prices to continue their growth past their previous peak experienced in 2007.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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