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Photo: 123rf.com
The housing market has warmed up to winter with an uncharacteristic increase in sales.
The Real Estate Institute (REINZ) data for the month of July data indicates there has been a wave of house buyer activity in New Zealand not typically seen in late winter.
Institute chief executive Jen Baird said the volume of sales rose 14.5 percent year-on-year and nearly 20 percent month-on-month.
"Although we have not yet reached the spring selling season, we are observing early signs of growth in the market not typically associated with this time of year," she said.
"This can be seen through the seasonally adjusted data, which indicates an increase of 5.4 percent in national sales compared to last year, which reflects a market performing above anticipated levels."
However, the institute's house price index - which measures the changing value of residential property nationwide - fell 0.3 percent on the month earlier.
The national median house price fell 2.2 percent from $770,000 to $753,000 compared to the year earlier, with price drops in seven regions.
"There has been downward pressure on prices in most parts of the country this year and sales volumes have been lower than average as the cost of living, concerns around job security and interest rates challenge many people in New Zealand," Baird said.
"However, it seems this sentiment is beginning to change. The slight decline in interest rates in July, and a belief that there are more to come, appears to have encouraged buyer activity, as reflected in the increase in sales."
