The housing market stalled in October, according to property website Realestate.co.nz.
"New Zealand's property market went into a holding pattern weeks ago, as kiwis responded to a climate of uncertainty," Realestate.co.nz said in its October market report. The highlights:
- New residential listings received by the website had their seasonal lift in October but were down 4.5% compared to October last year, suggesting potential vendors were putting selling plans on hold.
- Total residential stock for sale on the site was up 11.4% compared to October last year. That puts the total amount of residential stock for sale on Realestate.co.nz at its highest level since 2014, suggesting buyer caution.
- Auction activity is down compared to previous years, with 22.1% of new listings in October marked for sale by auction, down 26.2% in October last year.
Realestate.co.nz CEO Sarah Wood said auctions can be a sign of vendor confidence.
"Auctions tend to be more popular when buyer demand is strong and their fixed timelines require sellers to commit to a sale date," she said.
"What's interesting this year is that auctions have fallen to their lowest October share in seven years," she said.
The average asking price of properties advertised on the website was $840,380 in October, down 2.7% compared to October last year.
Auckland's average asking price was $984,527 in October, down 5.2% compared to October last year.
That was the second month in a row that the average asking price has been below $1 million.
The biggest annual declines in asking prices were in two areas that were previously rising stars of the property market - Gisborne, where October's average asking price was $691,149, down 11.0% compared to October last year, and Hawke's Bay, where the average asking price was $715,918, down 10.1% compared to October last year.
Wood said the drop in new listings suggested sellers who weren't under pressure to move were waiting until after the election.
"With the election just around the corner, it's not surprising to see some sellers holding off," she said.
"Buying or selling a home is a big decision, and people naturally want to feel they're making it at the best possible time.
"Whether waiting until after the election actually makes a difference is another question, but it's a pattern of behaviour we often see in times of uncertainty," Wood said.
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