The housing market slump deepened in July with sales volumes hitting their lowest point for the month in 12 years and median prices now lower than they were a year ago.
The latest figures from the Real Estate Institute of NZ show that 4678 residential properties were sold in July, a drop of 36.7% compared to the the 7391 sold in July last year.
That meant last month's sales numbers were the lowest they have been for the month of July since 2010.
Not surprisingly in such a quiet market prices are also sliding, with the national median selling price dropping by $40,000 in the month to $810,000 from $850,000 in June.
The national median is now 1.8% lower than it was in July last year, the first time it has fallen on an annual basis since July 2011 and that means all of the capital gains that occurred in the last 12 months have now been wiped out.
The national median price has now declined by $110,143 since it peaked at $920,143 in November last year.
As usual the movement in the market is being led by Auckland, where sales volumes dropped to 1419 in July, down 16% compared to June and down 49% compared to July last year.
Auckland's median selling price dropped by another $50,000 last month to $1,100,000, and is now down by $200,000 from its November peak and down by $65,000 compared to July last year.
The REINZ House Price Index, which adjusts for differences in the mix of properties sold, was down 2.9% compared to July last year and has now fallen 10.8% since it peaked in November last year.
Other regions to show significant price falls last month compared to June were Waikato -$50,950, Bay of Plenty -$40,000, Wellington Region -$40,900, Otago -$105,000 and Southland -$25,000.
Not surprisingly, properties are also staying on the market for longer, with the median days to sell hitting 47 in July, up from 31 in July last year.
"Real estate markets are cyclical, after a period of strong upward movement it is slowing," REINZ Chief Executive Jen Baird said.
"However, prices tend to decrease more slowly than they increase and after a period of stability, the market tends to regain momentum and median prices start their climb.
"We are in the easing part of the market cycle," she said.
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The interactive charts below show the trends in the monthly median selling prices and sales volumes in all regions.
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