March sales grow as number of houses for sale grows too

Back in February I reported to you that it looked like real estate prices in 2010 would be a lumpy ride. And the REINZ reported very low sales figures in February. Well, the market showed its volatility in March with a marked increase in sales numbers already this year, so you can see the sales figures jumping around a little. Supply now exceeds demand and buyers are moving in numbers and making purchases, as sales numbers show signs of a normal market again. Residential Sales Statistics for March 2010 show sales numbers climbing back and the national median rising slightly, though it’s patchy across the country.

The evidence suggests that may well be the case, but as I also said last month, we needed to get sales volumes back up over 6000 a month, so prices didn’t come under downward pressure. The last month’s results should give new sellers confidence they can achieve a sale, and provide those sellers who have been on the market for some time, the evidence to check their price expectations are realistic.  Once again let’s understand one month does not make a market and let’s see how sales volumes and the median prices hold up over the next 3 months. Monthly variances and a steady annual result are most likely.

January: 3,666

February: 5,029, and

March: 6,161 sales

The national median in March was $360,500 which is the highest March median in twenty years, but only up $500 on the median for December 2009. So values seem to have settled and in some areas the median price dropped back markedly in March.

Clearly the increase in listings for sale is balancing the market a little, though as mentioned on the left, there are now houses languishing on the market for several months as they priced ahead of the rising market in the few months through to December. This market is a strong contrast to what we experienced in October & November 2009, when demand was strong, listings were short and prices went up quite dramatically. The median days to sell eased from 46 in February to just 35 in March. The fresh listings to the market are being priced in current conditions which will give them a price advantage over those listed when the market was rising.

Clearly there is confidence in the market and buyers are out looking, but being prudent in their decisions. This reinforces the need to price and market carefully when looking to sell. There is ample market evidence to estimate a likely sales range; we need to  acknowledge it.

(Source of figures; REINZ Statistics March  2010, released 16th April 2010 ).