Biggest drop in house prices over the last six months since REINZ records began

The housing market remained in grim territory in August with sales barely changed from July's lows and prices continuing to fall.  The Real Estate Institute of NZ recorded 4891 residential sales throughout the country in August, down 18.3% compared to August last year and down 20.2% compared to pre-pandemic levels in August 2019. There were, however, 91 more sales in August than in July, suggesting the sales slump may have bottomed out.

However prices continued to decline with the national median price hitting $800,000 in August, down $10,000 (-1.2%) compared to July, and down $50,000 (-5.9%) compared to August last year. The REINZ House Price Index declined by a further 1.3% in August and and is now down 5.8% compared to a year ago.The REINZ noted prices in August were "weaker than expected.""Since the peak in November 2021, we have seen median prices ease, REINZ Chief Executive Jen Baird said.

"In the past six months, the median price across New Zealand has decreased by 9.6%, while Wellington has seen a decrease of 21.6% - from $995,000 in February 2022 to $780,000 this month. "These are the greatest six month drops in prices each has experienced since REINZ records began in 1992," she said.Nationally, the median price has now dropped by $120,143 from its November 2021 peak and in Auckland the median is down by $200,000 compared to its November 2021 peak. The price falls in the Wellington region have been even more spectacular.Prices there briefly hit the $1 million mark in October last year and have since retreated back to $780,000 in August, a decline of $220,000, booting Wellington well out of the million dollar club.

In Waikato the median price has declined by $78,000 from its April 2022 peak, in the Bay of Plenty the median is down by $74,000 from its February 2022 peak and in Canterbury the median is down by $68,000 compared to its February 2022 peak.  Article continued...

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