House sales plummeted to their lowest level ever in January, excluding the 2020 Covid-19 lockdown period when market activity came to a virtual standstill.
The latest figures from the Real Estate Institute of New Zealand (REINZ) show just 2759 residential properties were sold nationally in January. That's down 27% compared to January last year.
This is believed to be the lowest sales figures for any month of the year apart from April 2020.
Even in the years immediately following the Global Financial Crisis, 2009-2011, when the housing market was in a sustained downturn, January's sales remained well above 3000.
Prices are also falling, with the national median price down 13.3% compared to January last year, while the REINZ's House Price Index was down 13.9% over the same period.
Looking ahead, the figures suggest a grim outlook for the market for the next little while at least.
The REINZ recorded 27,732 residential properties on the market at the end of January, up a huge 39.4% compared to a year earlier.
That massive increase in inventory was in spite of the number of new January listings declining by 16% compared to January last year.
Essentially there are more properties available for sale but not much is selling.
That is reflected in the average amount of time it is taking to sell properties, which stretched out to 53 days in January, up by 16 days compared to January last year, which is a huge increase.
However REINZ Chief Executive Jen Baird was hopeful that things would improve in February and March.
"Reports of more activity in the market are growing," Baird said.
"Agents in many areas are reporting more attendance at open homes, more interest online and even more multi-offer situations.
"Inventory has increased 39.4% year-on-year, now sitting at 27,732 properties which provides plenty of choice for buyers.
"Add to that prices that have eased over the last 12 months and some less bad economic news coming out recently, it seems there are more buyers active in the market.
"February and March data will tell us if they choose to act," she said.
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