THE TAKEAWAY: New Zealand Home Sales Volume Fell and the National Medium Price Eased in April> Activity Levels in the NZ Housing Market Pulled Back Somewhat but still Trend Higher> NZD Pares Loss
Activity levels in the New Zealand’s real estate market have slightly eased in April after the strong March as the number of home sales fell and the national medium price declined from March’s record high.
Home sales volumes slumped 22.6 percent to 5.676 in April from 7,330 in March but climbed 13.8 percent to 5,676 in April from 4,987 twelve months earlier, the Real Estate Institute of New Zealand (REINZ) reported today. Similarly, the April median home price fell 1.4 percent to NZ$365,000 from a record high of $370,000 in the previous month. The Housing Price Index, which uses all sales by REINZ members rather than only a median price, declined 0.3 percent, in contrast to 1.9 percent gain in the prior month. “While the national median price has pulled back from the record set last month the trend is still moving up, although not at a great pace”, said Halen O’Sullivan, chief executive.
The medium number of days to sell a property, a gauge of underlying demand, was 37 days compared with 35 in March. Meanwhile, the medium days to sell a house over the past five year have averaged 41 days. Canterbury and Westland registered the shortest day to sell a property while Central Otago recorded the longest number of days.
The total value of residential sales slipped to $2.57 billion last month from $2.62 billion in March. The housing market witnessed some improvement for Hawkes Bay but saw no change outside the markets of Auckland and Christchurch.
NZDUSD 1-minute Chart: May 9, 2012
Chart created using Strategy Trader – Prepared by Trang Nguyen
The New Zealand dollar pares loss versus most of its major trading partners in the minutes following the REINZ Housing report. The kiwi, a nickname of New Zealand currency, hiked about 15 pips against the greenback from 0.7849 to 0.7864, as seen on the 1-minute NZDUSD chart above. At the time this report was written, one New Zealand dollar trades at $0.7855.
--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com
To contact Trang, email email@example.com