The housing market ended the summer selling season on a soft note, with prices falling in most places and March sales volumes at their second lowest level in 13 years.
According to the Real Estate Institute of New Zealand, 6521 residential properties were sold in March.
That was the second lowest number for the month of March since 2011, behind March 2023, and was down by 36% compared to the peak of 10,151 sales in March 2021.
Prices were also weaker, with the REINZ's House Price Index (HPI) declining 1.2% nationally in March, with most of the main cities and districts posting declines.
The HPI was down 1.9% overall in the Auckland market, with the biggest decline of 3.1% occurring in Rodney on the region's northernmost reach, while Franklin in the south was the only Auckland district to post a gain for the month, at 1.8%.
Around the rest of the country the only major centres to post gains for March were Tauranga 0.1%, Hastings 0.2%, Napier 0.3%, Porirua 1.2%, Nelson 1.0% and Invercargill 0.8%, with the HPI for all other centres declining in March.
Additionally the HPI was lower in most North Island centres in March than it was at the end of last year, suggesting the decline in prices is becoming well established (see the table below for the regional figures).
The REINZ's HPI is considered the most reliable indicator of price movements in the market because it adjusts for differences in the mix of properties sold each month, while average and medians can be skewed by a shift in the balance of cheaper or more expensive properties sold.
The fact that prices slipped in most places during March is particularly significant because March is usually the busiest month of the year for residential property sales and signals the end of the busy summer selling season.
It is not unusual for prices to slip a bit as the market heads into the winter. But the early fall in prices this year could signal the start of a long cold winter for the residential property market.
A particular concern is the high level of stock available for sale as the market heads towards winter.
According to the REINZ, total inventory levels at the end of March were at their highest level since 2015.
The comment stream on this article is now closed.
REINZ House Price Index - March 2024
Volumes sold - REINZ
Select chart tabs
•You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.