Tight lending in the rural sector is being blamed for a fall in national dairy-farm sales, to just seven in January - traditionally one of the better selling months.
For the three months to January, the total number for all types of farms sold nationally was 208, compared to 305 for the same period a year ago, and more than 70% down on the 732 sold to January 2008, according to Real Estate Institute of New Zealand figures released yesterday.
Comparatively, 33 dairy farms sold in the three-month period, compared to 40 the year before and 156 the year before that, REINZ president Peter McDonald said in a statement.
He said it was "alarming" only seven dairy farms sold in January, normally the prime time for selling dairy farms.
While there was plenty of interest in farms, lenders appeared to be lacking in confidence, he said.
Otago reflected the downturn in overall farm sales, 12 being sold for the three months, compared to 15 the year before and 32 the previous year.
Nationally, the median price for the three months was $1 million, more than 33% down on the $1.52 million a year before, while Otago's median price was $730,000, reflecting a 31% decline from the previous year's $1.07 million median price.
