Price dip not a concern, says real estate director

ROSA STUDHOLME
Last updated 05:00 19/11/2012
house real estate sale
PROPERTY MARKET: A price dip in Timaru real estate market is not a concern.

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The median house price in Timaru fell significantly last month, dropping $42,000 on the previous month.

The Timaru property report for October released last week showed the median house price at $223,000, down from $265,000 in September 2012.

Timaru real estate director Carl Slade said the drop in the median price did not necessarily reflect a drop in market values.

"In September we saw a larger than normal level of sales in the higher price brackets whereas October saw stronger sales in the lower to mid-levels.

"Because of the relatively small size of our market, our median tends to fluctuate substantially . . . [and] the six-month moving average trend line is therefore a better indication of where our prices actually sit."

There were 57 recorded residential house sales in the Timaru market for October 2012, a strong increase in volume from the 48 recorded in September and the 45 recorded in October 2011, he said.

"For the last consecutive 12 months we have recorded 656 residential house sales compared to 533 sales For the same period last year."

The volume of sales was steadily increasing back to more sustainable levels, he said.

"To put these figures into perspective, the average number of sales per month for the previous 17 years was 60."

There are 244 houses being advertised for sale in Timaru, according to realestate.co.nz, similar to the 246 recorded last month.

Mr Slade said there was strong buyer demand for well-presented properties in the $200,000 to $300,000 price bracket.

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- © Fairfax NZ News

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