REINZ figures show a 12% annual drop in September house sales, while stock levels rose 11%

It was a slow September for the housing market, with sales down almost 12% year-on-year and prices down 1.5%, according to the latest Real Estate Institute of New Zealand (REINZ) data.

The REINZ recorded 5752 residential sales in September, down 11.6% compared to September last year.

In Auckland, the country's largest housing market, sales were down a whopping 19.0%, while in the rest of the country excluding Auckland, sales were down 8.2%. So not a great start to the spring selling season.

Making things worse, while sales numbers were down, the number of properties for sale rose, with REINZ recording just over 34,000 residential properties available for sale in September. That was up 10.7% compared to September last year.

Lower sales against a backdrop of rising stock levels is not a good combination for any market, so it is perhaps no surprise that selling prices were lower.

The REINZ's House Price Index (HPI), widely considered one of the most reliable indicators of house price movements because it adjusts for changes in the mix of properties sold each month, was down 1.5% in September.

The biggest regional annual drop in the HPI was in Wellington at -4.5%, followed by Northland -3.4%, Auckland -3.2%, Taranaki -3.0%, Manawatu-Whanganui -2.4%, Waikato -2.2%, Gisborne/Hawke's Bay -1.6% and Bay of Plenty -0.9%.

Annual gains were recorded in Southland 7.5%, Otago 2.8%, Canterbury 3.1% and Tasman/Nelson/Marlborough/West Coast 0.1%.

The national median selling price was $755,000 in September, down 2.3% compared to September last year.

"Activity is continuing but decisions are not being rushed," REINZ Chief Executive Lizzy Ryley said.

"Buyers are moving forward when the property, price and timing suit their circumstances, while many vendors recognise that achieving a sale may require patience," she said.