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New Zealand Housing Market Prices Slightly Lower in August as Activity Slows, Inventory Builds, REINZ Says

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The national median sale price in New Zealand's housing market fell 1.3% year over year in August to NZ$750,000 as the sales count declined 13% to 5,430, according to a Real Estate Institute of New Zealand (REINZ) property report published Tuesday.

The sales figure for the month marks the sixth-lowest August in 35 years of REINZ records. Inventory levels, meanwhile, jumped 9.7% to 32,908 units, with Auckland and Wellington now having seen 31 straight months of year-on-year inventory growth.

Properties took a median of 51 days to sell in August, three days longer than in the same month a year earlier and the fourth-highest August reading on record.

The number of new listings at a national level fell 5.1% to 8,326. Auckland saw 3,278 new listings come to market in August, only slightly lower compared with a year ago.

Fixed mortgage rates increased in August as major banks repriced in the first two weeks of the month, reflecting movements in wholesale swap markets through July, REINZ said. Household costs and upcoming general elections also impacted sentiment during the month, with some buyers adopting a 'wait-and-see' approach.

The REINZ House Price Index declined 0.9% year over year in August, supporting the relative steadiness of the national median price.

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