House prices declined in March even though sales numbers were up strongly, according to the latest figures from the Real Estate Institute of New Zealand (REINZ).
The REINZ House Price Index (HPI), which adjusts for differences in the mix of properties sold each month and is widely regarded as the most accurate indicator of house price movements, declined 0.6% nationally in March from February. It was down 0.7% compared to March last year.
Around the country the biggest monthly declines in the HPI were in the Wellington Region down 1.8%, followed by Bay of Plenty and Tasman/Nelson/Marlborough/West Coast, both down 1.2%. Auckland was down 0.5%.
The HPI was unchanged for the month in Otago, while increases were recorded in Manawatu/Whanganui 0.9%, Southland 0.7%, and Gisborne/Hawke's Bay also 0.7%. See the table below for the full regional figures.
Although the HPI declined in most regions in March, the national median selling price, which does not adjust for changes in the mix of properties sold, was $790,000 in March, up 2.6% compared to February, but down 1.4% compared to March last year.
While selling prices could perhaps be best described as subdued, sales volumes were more lively. The REINZ recorded 7640 residential sales in March, up 12.8% compared to March last year, and the highest number in any month of the year since November 2021. March and November are usually the busiest months for residential property sales.
However, properties were taking longer to sell at a median 41 days in March, up by three days compared to March last year.
The lack of price growth in a period when mortgage interest rates have been falling can likely be explained by the high number of properties for sale, with just over 12,000 residential listings hitting the market in March, up 5% compared to March last year.
"March saw a year-on-year increase in sales, but median prices continue to lag behind," REINZ Acting Chief Executive Rowan Dixon said.
"New Zealand's property market remains the same - high listings result in decreased buyers urgency.," he said.
"If a buyer misses out on a property, they can easily find a similar one for sale," Dixon said.
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Volumes sold - REINZ
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Median price - REINZ
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