Housing sector at a glance: April – June 2009
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Government housing assistance rose in June 2009 with nearly 48,000 more people receiving an accommodation supplement and 666 more households receiving an income-related rent than in June 2008. There was an increase in Housing New Zealand Corporation high priority waiting lists (Priority ‘A’ and ‘B’), with 4,200 applicants in June 2009; 5.4 percent more than in June 2008, Average waiting times increased for both priority ‘A’ applicants (up from 24 days in June 2008 to 32 days in June 2009), and priority ‘B’ (from 73 days in June 2008 to 82 days in June 2009).
House prices have been flat for two months nationally, but Auckland is showing signs of growth
- The housing market is showing steady prices, but higher sales volumes and turnover in houses sold.
- REINZ report the median sale price for the whole of New Zealand was unchanged at $340,000 in July 2009 compared to July 2008. This followed a similar 0.0 percent change in the year to June, a 2.2 percent drop in the year to May and 1.4 percent drop in the year to April 2009.
- The median sale price for Auckland grew by 4.5 percent in the year to July 2009; the highest annual growth in the region since December 2007.
Volume of house sales up compared with same time last year, and houses are taking less time to sell
- REINZ report that there were 6,014 house sales during the month of July 2009. This is an increase of 34.0 percent on July 2008, and lends credence to the idea of a levelling of house prices.
- The upward trend in sales volume has now been continuing for 5 months.
- The median number of days taken to sell a property in July 2009 was 37 days, much shorter than the 58 days it took in July 2008. The days to sell figures compared with the same month in the previous year have been decreasing since April 2009.
Government housing assistance rose, numbers of applicants for government housing grew, and the time to house people on the lists increased for the year
- Government assists low-income families into affordable housing mainly through the Accommodation Supplement (AS) and Income-Related Rents (IRR). At the end of June 2009, there were 293,388 AS recipients and 60,739 IRR tenants; compared with the figures for June 2008 of 245,510 and 60,073 respectively.
- Total government housing assistance in the June 2009 quarter was $392 million, 13.8 percent more than the $344 million provided in the June 2008 quarter. This is the largest annual increase since September 2005.
- The number of people on the Housing New Zealand Corporation Priority A (“severe and persistent housing needs that must be addressed immediately”) and B (“significant and persisting housing need”) waiting lists for housing increased by 5.4 percent between June 2008 and June 2009. Of these, the A waiting list increased by 1.2 percent between March and June 2009, and by 5.2 percent since June 2008. The B list decreased by 2.3 percent between March and June 2009, but increased by 5.4 percent compared with June 2008.
- The data shows a slow increasing demand for Housing New Zealand Corporation properties year-on-year, slightly beyond what can be met in the short term. The average waiting time for people on the A priority waiting list reduced by 15.8 percent from 38 days to 32 days between March and June 2009; although this was an increase of 33.3 percent compared with June 2008. At the same time, the waiting time for B priority applicants decreased by 5.7 percent, from 87 days in March to 82 days in June 2009, a 12.3 percent increase since June 2008.
- Tenancy bond data shows average weekly rents for new private rental tenancies are flattening off. Private rents did not change in the year to July 2009. In July 2009, the average weekly rent was $228 for one-bedroom flats (including apartments), $291 for two-bedroom flats, $267 for two-bedroom houses, $322 for three-bedroom houses and $414 for four-bedroom houses.