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New Zealand Housing Market Sales Volumes Fall For Third Consecutive Month in March, Cotality Says

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Sales volumes continued to decline across New Zealand's housing market for the third consecutive month in March, down 2.4% year-over-year, Cotality said in a Thursday report.

Sales volumes declined by 7.6% in January and 3.1% in February, according to Cotality's NZ Monthly Housing Chart Pack.

The three subdued months in a row indicate a weaker first quarter than expected, Cotality NZ Chief Property Economist Kelvin Davidson said. "It's not a sharp downturn, but it does show that confidence is still muted."

National median property values rose 0.2% in March and 0.3% during the March quarter. Values across Auckland were down 0.2% over the three months ended March 31 and 3.4% lower year-over-year. Christchurch recorded a gain of 1.1% over the quarter and 2.4% year-over-year.

Soft rental conditions saw rents fall 0.4% year-over-year, though gross yields hit a high of 3.9%.

First home buyers dominated the market at 27% of March quarter sales, well above their long-term average of 22%.

Global uncertainty, along with higher inflation and interest rate expectations, continues to weigh on confidence, Davidson added.

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