National house sale prices were frozen mid-winter but sales volumes fell as pressure on the sector stayed up.
Prices were unchanged at $780,00 from May to June, Real Estate Institute data out today showed, and Auckland’s median only rose 0.8 per cent to $1 million.
But June sales volumes dropped nationally 4.1 per cent to 5629 sales.
National sales prices were down 8.2 per cent from $850,000 last June to $780,000 last month.
For New Zealand excluding Auckland, median prices were down 8.1 per cent to $680,000. Auckland’s median price has fallen 12.5 per cent annually.
Jen Baird, REINZ chief executive, said of Auckland: “Many vendors are preferring to wait in the hope of achieving their price expectations, although some are meeting the market and adjusting their price. Listings were 23.7 per cent lower year-on-year. Buyers are continuing to look, with attendance at open homes and auctions increasing slightly in central and south Auckland.”
Nationally, new listings decreased by 21.2 per cent, from 7893 last June to 6218 last month. Eight of fifteen regions have had listings decreases of more than 20 per cent annually.
It now takes an average of 49 days nationally to sell a house, no change from May this year but up four days from last June.
When that seasonal trend is taken into account, June exceeded expectations compared to the sales count in May, REINZ said.
The REINZ House Price Index showed an annual decrease of 9 per cent in the value of residential property nationwide.
Historical data tells us we typically expect a decrease in sales between May to June, Baird said.
Nationally, 9.8 per cent or 549 of properties were sold at auction last month, compared to 11.7 per cent or 575 last June.
At the end of June, there were was 24,676 properties for sale nationally, down 6.1 per cent from 26,271 this time last year.
Baird said first home buyers were active right now, especially after a change last month.
“Salespeople across the country are reporting increased first home buyer activity at open homes, with the easing of LVR restrictions that came into effect on June 1 bringing more people out looking. Although activity has increased, caution remains as interest rates, a pending election and further strain caused by the cost of living tempers putting pen on paper,” she said.
The Bay of Plenty’s median fell 6.7 per cent annually to $840,000. Manawatū/Whanganui’s median price decreased by 6.6 per cent annually to $540,000.
Earlier this month, Auckland’s largest realtor said this cycle is one of the hardest the city has endured but prices and sales volumes ticked up marginally last month.
Peter Thompson, Barfoot & Thompson’s managing director, said June property sales were more in line with traditional pre-Covid patterns.
“The current housing market cycle is probably one of the hardest Aucklanders have been through in recent years and while it is still tough, there continue to be positive signs we are now entering into a period of more stability,” he said.
The agency recorded 711 sales in June this year, down on May’s 723 but ahead of April’s 473.
June’s average sales price was $1,097,896 which was 2.5 per cent up on May’s $1.07m. The median price, at $995,000, rose by 4.2 per cent compared to May.
“We are seeing an increase in multi-offer bids on properties and our auction rooms have been busy throughout the month. Although the increased activity is not driving up prices, it does indicate confidence is returning, which is great news for both vendors and buyers,” Thompson said.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
Nearly 90% of new mortgage lending in October was floating or fixed for a year or less.