The unstable state of the global economic recovery continues to wreak havoc on the world trading markets. While the United States economy staggers from one dilemma to another, the lack of willingness of the Greek government to make tough decisions within its domestic economy threatens to severely damage the European Union.

 

Closer to home, Australia is experiencing a time of uncertainty, both economically and in particular, politically. Business confidence is down to its lowest level since April 2009. It seems to be an absolute mess over there, but continuing numbers of New Zealanders are choosing to migrate across the ditch for the promise of better opportunities.

 

Meanwhile, here in New Zealand we seem to be making positive progress, even if it is slow, in emerging from the recession. Threats of a double-recession continue to be bandied about but, at this stage, we seem to be reasonably well placed for an eventual recovery.  Confidence within the retail businesses of our provincial towns does not bear this out, if talk on the street is anything to go by.

 

On a national basis, unconditional residential sales were up 905 sales (+21.1%) compared to August last year and 264 sales higher than July 2011—a slightly stronger lift than the seasonal pattern expected at this time of the year. Prices were relatively steady across the country with Northland recording the strongest lift, as a region.

 

The tight supply of listings across the country is the key feature of the market currently. Historically, spring brings about an increase in listings, but with the impact of the Rugby World Cup and the General Election soon after makes it difficult to predict how the market will respond this year.

 

An interesting statistic that came out of the breakdown of the value of properties sold in August 2011 was that 60.3% of all properties sold were for under $400,000. That was 3130 of the 5192 total.

 

In North Rodney 23 of the 33 (69.7%) of the recorded sales were for under $400,000.00.  The North Rodney sales for August, unfortunately did not follow the national trend. While the residential sales volume was up by 10 on the 23 recorded in August 2010 (+43.5%) it was slightly down on the July figure of 36.  2011 was that 60.3% of all properties sold were for under $400,000. That was 3130 of the 5192 total.  In North Rodney 23 of the 33 (69.7%) of the recorded sales were for under $400,000.

 

The North Rodney sales for August, unfortunately did not follow the national trend. While the residential sales volume was up by 10 on the 23 recorded in August 2010 (+43.5%) it was slightly down on the July figure of 36.

 

Rural/lifestyle sales remain at the same level over both July and August, with only 7 being concluded. This period of 2010 was also consistent although the sales level was a little higher at 10 each month. An interesting aspect of the August result was that sales for bare land exceeded developed properties. Perhaps this signals a new interest in lifestyle buyers.

 

Another noticeable point was that three of the sales were for prices considerably lower than the previous sale price.  Of the total forty sales (residential and   rural) that went unconditional over August, thirty-seven had Capital Values assigned to them in 2007. The table on the reverse side shows that thirty of those thirty-seven (81.1%) sold for prices lower than their CV. The most significant being a property that sold for only 50 percent of the assessed CV.

 

Snells Beach, where the majority of sales were made last month, did not have one sale above CV. With sales ranging from 1.4% to 26% below the 2007 CV, the average sales price in the Bay was 15.3% below the CV. Snells Beach also featured in the latest New Zealand Herald Property Report as one of the main “sliders”, that is one of the suburbs in the Auckland Region recording the biggest house price ‘drops’ in the three months to 30 June 2011.

 

Oneroa (Waiheke Island) and Point England suffered the same dubious honour.

 

Omaha, where sales have bucked the area trends over the last two to three years, did not register any sales for developed properties over August, with only three vacant sites selling in the Bay.