What is the activity in the NZ property market?
The June report of the Real Estate Institute of New Zealand (REINZ) showed an increase in property sales numbers compared to the same period last year. In total, 5,629 properties were sold across New Zealand in June this year, up 14.6% year-on-year. On the other hand, property sales went down 6.1% month over month.
New listings on the national level decreased by 21.2% year-on-year and by 15.5% month-on-month. Listings in New Zealand excluding Auckland also decreased year-on-year by 19.8%.
“Salespeople across the country are reporting increased first home buyer activity at open homes, with the easing of LVR restrictions that came into effect on 1 June bringing more people out looking. Although activity has increased, caution remains as interest rates, a pending election and further strain caused by the cost-of-living tempers putting pen on paper,” said Jen Baird (pictured above), chief executive at REINZ.
The June median price on the national level was down 8.2% year-on-year to $780,000. The annual median prices in the West Coast and Tasman regions were up 8.1% and 7.4%, respectively.
"A lack of listings and the challenge of navigating the current economic climate are putting pressure on the market," Baird said. "Commentators say there are harder times ahead, but sales are still happening, people are still making choices about where and how they live, and these choices necessitate a property transaction."
The REINZ House Price Index (HPI) for New Zealand saw an annual decrease of 9% on the national level, while for New Zealand excluding Auckland, the HPI was down 8%.
