House Prices

House sales battered

Residential property sales across the country took a steep dive in June.

Wednesday, July 13th 2022

Sales dropped annually by 38.1% from 7,629 in June last year to 4,721 as listings increased 89.5% from 13,861 in June last year to 26,271.

The sales count across the country, excluding Auckland, declined 35% annually from 4,776 to 3,103. Only the West Coast, with +31% had a month-on- month increase.

Those with the greatest annual drop were:

  • Auckland, down 43.3% annually from 2,853 to 1,618 ;
  • Bay of Plenty, down 41.3% annually from 458 to 269;
  • Gisborne, down 39.5% annually from 43 to 26; and
  • Taranaki, down 39.4% annually from 198 to 120.

Despite the sales slump the median price for houses increased 4.2% annually last month, from $816,000 in June last year to $850,000.

They were only up $10,000 from May from $840,000 to $850,000.

The median residential property price for New Zealand excluding Auckland increased 9% annually from $680,000 in June last year to $741,000. There was a month-on-month increase of 1.1% from $733,000 in May.

The median price in Auckland increased 0.5% compared to June last year from $1,150,000 to $1,156,000. Auckland also had a month-on-month increase of 2.8% — up from $1,125,000 in May.

Canterbury was the region with the strongest annual percentage growth in June. The median price in the region increased 22.1% annually — from $565,000 to $690,000 for the June year. Waikato recorded an annual increase of 14.3% — from $735,000 to $840,000.

Four regions showed an annual drop in median price. Wellington was down 4.2% from $885,000 in June last year to $848,000. with one showing no movement and only South Wairarapa increasing.

Hawke’s Bay was down 1.4% from $700,000 to $690,000, the median price in Manawatu/Whanganui dropped 1.1% from $581,200 to $575,000, and Taranaki saw a marginal decline of 0.2% from $576,000 to $575,000 over the same period.

The House Price Index showed an annual increase of 0.7% from 3,843 in June last year to 3,870 – down 9.5% from its peak in November.

REINZ chief executive Jen Baird says there is volatility across the country as the market seeks equilibrium at a more moderate pace.

While Canterbury’s median price rose 22.1%, and Waikato was up 14.3%, four regions dipped into negative annual price movements. Wellington was down 4.2% compared to June last year.

“Housing affordability remains an issue for many buyers on the market. Paired with tighter lending restrictions, higher interest rates and concerns over inflation, there is hesitancy amongst buyers.

“As the market stabilises, and the high-growth through 2021 dissipates, downward pressure on prices may improve affordability. However, this is balanced with higher mortgage costs and wider economic headwinds that may continue to temper people’s appetite for entering the market — as a buyer or seller.”

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