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Source: ONE News -
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Turnover in the rural property market may be low, but prices are holding their ground.
REINZ data released on Monday shows that turnover for the three months to January 2009 was one of the lowest on record, with just 305 sold compared with the three months to January 2008 when 732 properties sold.
REINZ national councillor and rural spokesperson Peter McDonald says one of the factors having the greatest impact on turnover is the availability of cash, or the lack thereof.
He says that as a result, there is a notable trend away from auctions and tenders, where cash up front is required, in favour of sales negotiated around the table.
Despite the lack of movement in the market, prices have remained steady, with the three months to January recording the same median of $1,525,000 as for the quarter to December 2008.
While the January figure is down from the same period the year before when prices spiked to $1,790,000 off the back of good dairy payouts, it has increased from the three months to January 2007 which had a median of $1,250,000.
"One of the factors helping to keep farm prices up is the fact that on farm costs, such as fuel, fertiliser and feeds along with interest rates are down, so farmers' bottom lines are not too badly affected," Peter McDonald says.
The price of lifestyle blocks increased slightly, up from
$450,000 in the three months to December to $450,500 in January,
though turnover was down on December.
