The real estate market in New Zealand, particularly in Auckland, experienced stable house prices but a decline in sales in June. Sellers in Auckland are holding off on selling in the hope of achieving higher prices, while some have adjusted their asking prices to adapt to the market. Property listings decreased both nationally and in Auckland, but prospective buyers are still actively searching for properties. The average time to sell a house remained unchanged nationally but increased compared to the previous year. Overall, the value of residential properties in the country experienced an annual decline. Auction sales decreased compared to the previous year, and the total number of properties available for sale decreased as well.
According to the latest data from the Real Estate Institute, house prices in Auckland remained steady at $780,000 from May to June. The median price in Auckland saw a slight increase of 0.8 per cent, reaching $1 million. However, despite stable prices, the number of sales in June dropped by 4.1 per cent nationwide, totalling 5629 sales. Comparing with the previous year, national sales prices saw a notable decrease of 8.2 per cent, falling from $850,000 in June last year to $780,000 last month. For properties outside Auckland, the median prices also experienced a decline of 8.1 per cent, reaching $680,000. In contrast, Auckland’s median price plummeted by 12.5 per cent on an annual basis.
According to Jen Baird, the Chief Executive of REINZ, in Auckland, a considerable number of property sellers are choosing to hold off on selling in the hope of achieving their desired prices. However, some sellers have decided to adapt to the market conditions and have adjusted their asking prices accordingly. Compared to the previous year, the number of property listings in Auckland dropped by 23.7 per cent. Despite this, prospective buyers are still actively searching for properties, as evidenced by increased attendance at open homes and auctions in the central and south areas of Auckland.
On a national level, new property listings saw a significant decline of 21.2 per cent, falling from 7893 listings in June last year to 6218 listings last month. Moreover, eight out of fifteen regions experienced decreases in property listings of more than 20 per cent when compared to the previous year. Currently, the average time it takes to sell a house across the nation is 49 days, which remains unchanged from May this year. However, compared to the same period last June, the average selling time has increased by four days.
According to REINZ, considering the seasonal pattern, the number of sales in June performed better than expected when compared to the sales count in May. Additionally, based on the REINZ House Price Index, there was an annual decline of 9 per cent in the overall value of residential properties across the country. Historical data indicates a usual decline in sales between May and June. On a national scale, last month, 9.8 per cent or 549 properties were sold through auctions, compared to 11.7 per cent or 575 properties sold in the same period last June. By the end of June, the total number of properties available for sale nationwide was 24,676, which represents a 6.1 per cent decrease from 26,271 properties available at the same time last year.
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