Price still strong

The latest Real Estate Institute figures show there were 9,448 homes worth $2.23 billion sold in October, up from 7,943 in September and up 41.7% on the 6,666 homes sold in October last year. That was still below the record 9,742 homes sold in March.

The median house price rose from $185,000 in September to $188,000 in October which compares with $179,000 in October last year. That's a 5% annual rise. That's still below the record median price of $189,000 achieved in April this year.

"Sales are traditionally particularly buoyant at the start of the Spring season," says Howard Morley, the institute's national vice president. "This year, with the milder winter and reasonably strong current levels of business confidence, sales started to pick up again in August, a month or so earlier than usual," he says.

He says there is a shortage of houses for sale in most regions which partly reflects demand for houses from migrants and returning expatriates.

Relatively attractive fixed-rate mortgages are also making property an attractive investment, Morley says.

Activity rose in all 11 regions compared with a year ago and was also up on September in all regions except Northland. Prices rose in six regions and fell in the other five compared with September and compared with October last year, prices were up in seven regions, down in three and unchanged in Manawatu/Wanganui.