New Zealand’s June house price results were a complete wipeout.
For example, REINZ’s House Price Index, which is a preferred measure of the Reserve Bank, posted a sharp 5.4% fall over the June quarter, with all major urban districts declining in value. In a similar vein, the Trade Me property index registered a record a 1.9% fall in the month of June amid “skyrocketing supply”.
Yesterday, property website realestate.co.nz reported more losses, with asking prices tumbling and the number of new listings remaining above pre-pandemic levels:
At the end of July realestate.co.nz had 26,358 residential properties available for sale, more than double (+108%) the number it had available at the end of July last year.
The meant the number of properties available for sale was at its highest level for the time of year since 2015…
Inevitably there has been downward pressure on asking prices, with the national average asking price of properties listed for sale on realestate.co.nz declining from its January 2022 peak of $994,885 to $907,411 in July, down by $87,474 (-8.8%).
The Auckland the average asking price has declined from its January 2022 peak of $1,279,330 to $1,127,236 in July, a decline of $152,094 (-11.9%).
Average asking prices in all regions have fallen from the peaks set late last year or early this year…
“The market has started to shift,” realestate.co.nz spokesperson Vanessa Williams said… “Buyers now have the edge”…
Meanwhile, auctioneer Barfoot & Thompson had one of its worst July’s ever for sales, selling just 611 properties in the month, down 49% from July last year. The average and median selling prices of properties sold also continued to fall:
Barfoot’s average selling price was $1,122,575 in July, which was down $156,072 compared to its December 2021 peak of $1,278,647.
The median selling price was $1,110,000 in July, down $130,000 from its November 2021 peak of $1,240,000.
The Reserve Bank last month said that it would continue raising interest rates to fight inflation, which hit a 32-year high 7.3% over the June quarter. Therefore, New Zealand house prices will continue to plunge.
After experiencing one of the world’s biggest house price booms over the pandemic, New Zealand housing now faces one of the biggest busts. The writing is on the wall.
