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Average Sale Price
Prices continue to soften gently after they peaked late last year. Both the Median and the Average Sale Prices show the same trend.

Days to Sell
The time to sell has lengthened out to an average of 52 days in May compared with the historical average for the area of around 30 days.
A subdued buying market brought on by bad weather and negative predictions for property based on Govt changes to the tax regime meant less sales through in the last three months. There are a good swathe of buyers actively looking currently BUT they are very price sensitive and any overpriced homes are left to languish.

Turnover (number of homes sold)
May saw a further drop in market activity as winter hit home.

Summary

The feeling at the coalface currently is mixed. There is good activity at the mid $300k end of the market with young buyers wanting to beat interest rate rises and buy at good prices. As an example from last week, a tidy, fairly priced home hit the market at $335k+ and sold with 4 offers at $346,500, well over the advertised level in a matter of days.

There are big gaps showing especially in the low $400k’s and in the cheaper 3 + study or 4 bedroom home market.

Sales of new homes in the $500-$600 bracket in areas like Churton Park and Hunters Hill (Grenada Village) are still going well also.

On the other hand, unrealistically priced, outdated or ill presented homes are sitting with little or no action on them for months.

Interestingly there is no great build up of stock on the market (evidence actually shows the stock levels on the market dwindling)as home sellers hold off selling either because they can’t find anything to buy, or they are waiting till spring.

For more market information on the greater Wellington region visit

unconditional.co.nz/blog/wellington-property-market-pulse-factsheet-june-2010/

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