Residential property sales slumped in May, with sales numbers well down on a year ago and prices easing slightly, according to the latest data from the Real Estate Institute of NZ.
The REINZ provisionally recorded 6523 residential sales across the country in May, which down 12.6% compared to May last year.
In Auckland, the country's largest property market, 1920 sales were recorded, down 12.1% compared to May last year and in the rest of the country excluding Auckland, sales were down 12.8% compared to May last year.
On a seasonally adjusted basis, sales were down 7.0% compared to April.
Prices were also slightly softer.
The REINZ House Price Index, widely regarded as the most accurate indicator of overall price movements, declined by 0.3% nationally in May compared to April and -1.7% over the three months to May.
It was also down by 0.6% compared to May last year.
The table below shows the House Price Index movements in all regions.
The national median selling price was $775,000 in May, -0.6% compared to April but up 1.3% compared to May last year.
The two interactive graphs at the bottom of this page track the monthly movements in the REINZ's median prices and sales volumes in all regions.
"The national House Price Index for May remained slightly negative on both an annual and three month basis, pointing to a softer underlying price trend," the REINZ said in its May report.
"The Reserve Bank's decision on 27 May to hold the OCR at 2.25% confirmed the end of the rate-cutting cycle that had supported market activity through 2025," the report said.
"In Wellington, buyer sentiment during May was also affected by the pre-Budget announcement on 19 May of significant public sector job reductions, a Wellington-specific confidence factor that contributed to the region's continued weakness," it said.
"Cost of living pressures, including elevated fuel costs, and uncertainty ahead of the national election in November continue to weigh on market sentiment.
"Salespeople across the country reported that household budget pressures remained a key consideration for buyers, contributing to a more cautious, selective approach to purchasing decisions," the report said.
Median price - REINZ
Select chart tabs
Volumes sold - REINZ
Select chart tabs
3 Comments
North Island = bad, South Island = Pretty Good (except the upper SI). It would seem that the severe weather experienced in the NI and upper SI in the last few years is driving people south.
I suspect there are a number of factors, including:
- ChCh has had a lot of money spent on it
- Ageing population no longer need to be near big city for work
- More affordable housing down South
- Housing boom has ended in the North, less reason to stay
- Some people sick of immigration which is mainly the North
And I don't see it getting better in the coming months. Agents still taking listings at 2021 CV +... Not arguing about affordability but reality is not many can access finance at those prices.
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