There was a significant drop in both median house prices and the number of homes sold in January.
According to the latest data from the Real Estate Institute of NZ, the national median selling price dropped to $880,000 in January, down by $20,000 compared to December's $900,000 median.
It was the second month in a row that the national median has retreated from its November peak of $920,143.
The price fall was especially severe in the Auckland Region where the median selling price declined by $80,000, from $1.28 million in December to $1.20 million in January.
In the rest of the country (excluding Auckland) the median price declined by $10,000 to $750,000 in January.
However, four regions went against the trend, with median prices in Northland, Bay of Plenty, Taranaki and Otago all higher in January than they were in December.
All other regions posted median price declines over the same period.
The biggest declines appear to have occurred in the lower North Island, with the Wellington Region's median price dropping from $985,000 in December to $911,000 in January, while the median price in Manawatu/Whanganui dropped from $650,000 in December to $600,000 in January (the chart below shows the median price trends in all regions).
The decline in prices was accompanied by an even more substantial drop in sales volumes, with the REINZ recording 3655 residential sales throughout the country in January, down by 28.6% compared to January last year.
The REINZ said that was the lowest level of sales for any month of the year since January 2011 (excluding April 2020 when the market virtually closed down because of Level 4 pandemic restrictions).
In Auckland the number of sales in January was down 32.2% compared to January last year (the second chart below shows the sales volumes trends in all regions).
"Allowing for the usual seasonal trends, this January is weaker than a typical first month of the year," the REINZ said.
"Feedback from agents across the country suggests a decrease in the number of first home buyers and investors in the market, noting quieter auction rooms and open homes," REINZ chief executive Jen Baird said.
"Looking forward, we would expect sales volumes to increase as we head into February and March, however this does depend on reasonable levels of new listings," she said.
The comment stream on this story is now closed.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.