The number of residential property sales slumped in June but prices were up slightly overall, according to the Real Estate Institute of NZ.
Just 4721 residential properties were sold throughout the country, down 17.3% compared to the 5707 that were sold in May, and down 38.1% compared to the 7629 properties sold in June last year.
Compared to pre-pandemic levels in June 2019, last month's sales were 23.7% lower.
However, while the market may have been quiet, prices were up slightly, although there were significant regional differences.
The national median selling price increased slightly to $850,000 in June from $840,000 in May, although it remained below its November 2021 peak of $920,143.
Around the country, June's median selling price was down compared to May in eight regions and up in five. The biggest decline occurred on the West Coast where the median price declined by $100,000 from May to June, see the table below for the monthly movements in the regional median prices.
Significantly, June's median price was lower than it was in June last year in four regions - Wellington -4.2%, Hawke's Bay -1.4%, Manawatu/Whanganui -1.1% and Taranaki -0.2%, meaning selling prices in those regions are now in decline on an annual basis.
It is also taking almost two weeks longer to sell a home than it was at this time last year, with the median days to sell up by 13 days to 44, compared to 31 days to sell in June last year.
"We're seeing volatility across the country as the market seeks equilibrium at a more moderate pace," REINZ Chief Executive Jen Baird said.
"Housing affordability remains an issue for many buyers.
"Paired with tighter lending restrictions, higher interest rates and concerns over inflation, were are seeing hesitancy amongst buyers.
"As the market stabilises, and the high growth we saw through 2021 dissipates, downward pressure on prices may improve affordability.
"However, this is balanced with higher mortgage costs and wider economic headwinds that may continue to temper people's appetite for entering the market - as a buyer or seller," Baird said.
The comment stream on this story is now closed.
| REINZ Median Selling Prices | |||
| Region | May 2022 | June 2022 | Change |
| Northland | $724,000 | $700,000 | -$24,000 |
| Auckland | $1,125,000 | $1,156,000 | $31,000 |
| Waikato | $805,000 | $840,000 | $35,000 |
| Bay of Plenty | $910,000 | $900,000 | -$10,000 |
| Gisborne | $665,000 | $620,000 | -$45,000 |
| Hawke's Bay | $735,000 | $690,000 | -$45,000 |
| Taranaki | $630,000 | $575,000 | -$55,000 |
| Manawatu/Whanganui | $603,000 | $575,000 | -$28,000 |
| Wellington | $900,000 | $848,000 | -$52,000 |
| Nelson/Marlborough/Tasman | $770,000 | $800,000 | $30,000 |
| West Coast | $395,000 | $295,000 | -$100,000 |
| Canterbury | $687,000 | $690,000 | $3,000 |
| Otago | $700,000 | $750,000 | $50,000 |
| Southland | $449,000 | $446,500 | -$2,500 |
| All of Aotearoa | $816,000 | $850,000 | $34,000 |
Median price - REINZ
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Volumes sold - REINZ
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137 Comments
The Wellington HPI figures are bleak, -12.2% for one year. Auckland also now in negative territory by -1.7%
Yeah, interesting that REINZ HPI is not mentioned in this article, or maybe there will be another separate article to talk about HPI? Anyway, here is the REINZ HPI report for June:
REINZ Monthly HPI Report - June 2022.pdf
Yes very odd that there is no mention of the HPI in the article
We provide a separate HPI article on the day following the release of the main REINZ figures. We've been doing that for a couple of years now.
Ok, thanks for the explanation, Greg.
Out of curiosity, why do you report medians prior to HPI when the general consensus seems to be that HPI carries more stock?
Cynically, one would have to assume that staggering the articles over two days is good for engagement metrics. Interest will get two articles with 100+ comments by splitting the reporting, rather than one article with the same amount of engagement that contains all of the data.
Is there any specific reason or restriction for not reporting on the HPI in the first instance?
The HPI is statistic that truly matters when prices are on the move up, down, or sideways. The REINZ does itself a bit of deservice by releasing both median and HPI figures as they are often in conflict which can result in poor communication of the underlying trends. Given the RBNZ and public money was involved in pulling the HPI together I think its only fair that journalists can report on the HPI as soon as it is released
I agree that median prices can misrepresent price changes but from reading the HPI .pdf (thank you for posting), I don’t understand how that is constructed.. “underlying values”.. means what? can anyone explain please?
Wellington city HPI down -18.1% on June 2021!
Wellington city prices are almost back to their pre-covid levels. Given the current trajectory of price falls it won't be long before all of the gains in the post covid era have evaporated.
The question is Wellington an anomaly, or a preview of whats to come across much of the country?
one can hope!
look at this piece of crap for $1.7M in New Windsor Akld
https://realestate.co.nz/42166792/residential/sale/24-awhitney-street-n…
1,388m2 of land (approx) and oodles of floor area 241m2 (approx)
I used to live around the corner from this place, our was 1220sqm and we sold it for 580K in 2003.
The overall state of Wellington city, since 2017, is abysmal. Property prices reflect this. People have left and business have closed. Will take a good while to come back.
It’s horrible, the infrastructure is falling apart, parts of the city are derelict and look like a rundown version of a 1990s city. And there’s far too many bureaucrats. And a horrid climate, of course.
I am still quite fond of my hometown, though, haha.
Was in Dunedin recently and thought the same. Filled with organge/red brick builds from the 1950's and 1960's that are falling apart but nobody appears to want to spend any money on maintenance....perhaps just rent collection and capital gains.
Definitely got issues in Wellington, but the “business have closed” comment is merely reflecting a few retail closures in CBD that relied on heavy foot traffic - meanwhile the number of jobs in Wellington is at an all time high and there are record number of job vacancies as wellington employers are desperate for people (huge amount of poaching/head hunting going on - really driving up salaries in what was already the highest earning location in the country)
My belief is that Wellington will always be significantly less desirable (and therefore cheaper) than Auckland because immigrants with cash have no interest in living there. Wellington will also be in for some more pain when Luxon no doubt takes the knife to swelling government departments
I've been in Welly few times for job, doesn't look that bad :D .
Anyways.
1) You seem to assume that Nats will win the election
2) And they will reduce govt
while the first one might happen (I doubt it but I appreciate that is possible) the second one is something that I can bet body parts will NOT happen.
I never witnessed a central government getting smaller on purpose.
You need huns invasions for that.
Crash
Soft landing according to TTP lol
Aucklanders who moved there last year suddenly realising it's sh&^
A relative of mine sold a house in Auckland last month. Sold in less than a week.
Slow clap for Zach....
Any comment on the price achieved, if you know it?
Another steady 2% decline on the HPIs this month. Death by a thousand cuts, no sign of a bottom. Wellington and Tauranga leading the downward charge this month.
https://www.reinz.co.nz/Media/Default/Monthly%20Press%20Release%20Asset…
My view. Ignore years 20 and 21, extend a trend line starting from circa 2019 and draw that accross to 2022. That's were it will sink to, as a minimum.
Those that bought and sold in the past two years are a relitively minor portion of overall houseowners. If we drop 30% more from here most house owners will feel more affected than they actually are. But what's 400k off 1.6mil if I bought it for 350k in the 90s? I'm still making piles of money if I decide to sell.
Assuming rate rises continue as advertised. And no major policy intervention.
Those that bought and sold in the past two years are a relitively minor portion of overall houseowners.
The problem with this theory is that is only considers "homeowners". A huge portion of properties sold go to investors. Lets say 10,000 investment properties were purchased in this period. Not a huge problem right? But then consider how many investors have just been leveraging up equity in their existing portfolio to buy more whenever prices increase. Lets say they have on average 4 other investment properties which they leveraged up to buy 1 property in the peak. Now all of them are leveraged up based on 2021 prices. So now we have 50,000 properties all very susceptible to any price falls.
This is a massive oversimplification (not all investors use high leverage, and average number of properties might be higher/lower). But in general this idea that only "a few homeowners" bought at the peak, misses a huge area of risk.
..as opposed to a huge area of risk, Id call it a huge area of opportunity......for fhb's to finally own a home at a not a stupid as price..
All investment has risks...
What could happen is a portfolio goes from 60% to 70%+ LVR. Investors could receive a letter from their bank asking them to sell a property to shore up their position. Whether that has any teeth or not is another story. But I wouldn't want push them to far, the bank might decide you're too "risky" and the interest rates need to reflect that. Switching banks as an investor with over 70% LVR would be difficult to do as well....
I would expect some of them to be asked to start paying principal first (like.... now!)
Also, being mostly interest only, they better double the rent (if any, good luck!!), or start digging in savings (if any, good luck!!)
Even the total number of investment properties bought sold in the last year are a small portion of total.
RBNZ C31 June 2021 to May 2022:
- FHB -> 27,782 Borrowers @ $15,832m (Columns A2 & E2)
- Investor -> 28,984 Borrowers @ $14,881m (Columns A4 & E4)
And even if people are starting to get into - ve territory, most will sell at loss, absorb reduced cashflow into personal finances etc.
My point is that the recent rise was so artificial, removal of it will not be as earth shattering as some suggest.
"A relative of mine was one of the data points for June".
The exception fallacy is strong in that one
Just reporting the facts!
Fact not facts
Great! One anecdote from someone's relative obviously proves that the market is on fire. (Yep, sarcasm.)
I had a relative sell in Akld a couple of weeks ago and it went in under a week too.
It was a deceased estate though and they were keen to move it.
Yes, houses are selling, especially if the vendor is reasonable with the price. Not giveaway prices though. The RE market's death as reported by Interest.co's commentariat is rather exaggerated.
Which part is exaggerated, the statistics?
I think the part where people extrapolate a downturn to the point where they think RE is worthless. That part. Still plenty of people making money out there and I would wager, buyers who will make money too.
My daughter sold her home in a regional capital in five days and it was an unconditional offer. So what ? She had location on her side. There are huge numbers of houses there that have not sold in months. All types and values. There will always be anomalies. Generally though it is slow , far less sales, agents leaving the sinking ship and it’s only just starting.
Starting to sound like a trend. Three commenters now reporting this. It's significant.
We do have data to back up our stance. And you only have to open your eyes as you drive around where you live. The beginning of the end has only started and as more fear creeps in more and more vendors will sign thinking the next offer is likely to be lower than the one just presented.
Three to your one
My observations for auckland central eastern suburbs - remuera, parnell, meadowbank - high end still strong, mid to low end is dead in the water.
Squares with the median still ok and the HPI still plummeting
Perhaps that is the differentiation of of "owners house" vs. "speculators leverage".
Come on. Headline should be: REINZ HPI falls 1.9% nationally in the month to June. Medians are no good for this purpose.
The quality data from the REINZ HPI are below (June month-on-month % growth):
NZ: -1.9%
NZ ex Auck = -2%
Auck: -1.8%
Wellington region = -3.7% (Wellington city -5.7%!!!)
Christchurch city = +0.6%
---
Wellington city is down 18.1% year on year. (Annually: NZ +0.7%, NZ ex Auck +2.3%, Auck -1.7%)
Data are available here on page 6.
Come on. Headline should be: REINZ HPI falls 1.9% nationally in the month to June. Medians are no good for this purpose.
People with a basic understanding of statistics should understand that looking at medians and means in isolation is often meaningless.
Yes. Maybe this website should reconsider its approach.
or at least caveat the article on median prices with an acknowledgment of a further article to come on HPI which may show quite a different picture.
Maybe this website should reconsider its approach.
Not what I am saying. Interest dot co works with what it has and does a great objective job with the facts.
No, it’s what I am saying.
And I think they could do a better job. To subscribe I want more than the obvious stats, I want some intelligent and nuanced analysis, and we don’t see enough of it in the articles.
Most of the decent analysis is in the comments.
Where are you getting better financial coverage in NZ? I'm not finding it anywhere...
*Edit - Nevermind, I see that moaning about the media is your thing. Cool
It seems odd to me we still headline Median figures when the HPI data is made available on the same day? Is this something REINZ stipulates or something?
HPI data is showing the same clear trend and nationally is down another 1.9%. Wellington city is getting absolutely hammered. Down 18.1% YoY .... 12% down in just 3 months. Yikes
I have a feeling there is a restriction. Tends to be an article on the HPI results the following day here.
Could be worse though, read the stuff article and you get a very distorted view of what's happening. Once the price rises late last year fall out of the annual data anyone just reading the headlines is going to be in for a shock.
https://i.stuff.co.nz/business/property/129256802/median-house-prices-i…
Now that I think about it, you are right. Its baffling that REINZ are allowed to specify how the data is communicated.
It allows for the ‘better’ news of the median value trends to lead the HPI…
quite cynical, really
Is the median data systematically better? I guess it could increase marginally faster than HPI if the overall quality of housing stock increases over time but I haven't analysed the data.
Maybe if it's noisier it allows more cherry-picking of good data but I'm not yet convinced it's a conspiracy.
Not really, they are all part of the machine that has a single focus on growing the market at all costs.
Well not all cost. Just those that take on new mortgages...
Restriction on how media reporting its already released data? That's really odd...
Depends on what narrative one wants to push. Here's my narrative:
Ireland fell 6% and Dublin fell 9% in the first year of their housing market crash and went on to fall 70%.
That 18.1% YoY fall for Wellington City still has price rises baked into it up until November.
Wellington city looks to have been pretty flat across much of 2021. Not the same outsized price rises as we saw in other regions.
Peaked in November at $1.15m median, now under $900k median. Better to use HPI, but either way Wellington is down over 20% from peak.
Are we still calling this a correction?
Yes, percentage change from previous peak is the metric that, to my mind reflects falls in asset values best.
It reflects your biais best, Kate. Why not change from previous low for example, (like 30 years ago lol)? That would be the opposite biais to yours
Here's some euphemisms from the REINZ reports you could consider instead:
It's not a correction, just "negative annual movement"
This is just "the high-growth we saw through 2021 dissipat[ing]"
The market is just "seek[ing] equilibrium at a more moderate pace"
Indeed, stuff did the same, didn't mention anything about HPI... I kind of understand now why we had FOMO a while back. Media's selective reports can make quite a psychological impact to its readers.
God I detest Stuff. A woke, virtue signalling veneer over a mediocre and status quo biased core.
Must be a Tauranga thing. I have refused to look at stuff coming up 3 years now. Don't miss it. Harold is over 2 years as well. MSM - more shit media.
According to certain dorks on this forum, bringing up the "woke" means that you are on "the downward spiral".
Well, at least I have friends on the spiral. 👍
Yes, and according to Andrew Little, people that use the word crisis have used it so much it is now hyperbole, ie the problem you are attributing the crisis to does not exist, and it is you that is now the problem.
And following Littles' train of thought, if you use the word crisis too often that it annoys and starts to offend people, to the point they may want to or do attack you, then you are using hate speech.
yes in my mind, its a bit inappropriate for media outlets to be spruiking the property markets. A lot of people look to the likes of Stuff and NZHerald for fair and balanced News.
Over the last few years the fair and balanced has left the building and the news is based on who pays the bills.
I never got a reply from the Herald on their unbalanced reporting despite two follow up emails.
Our MSM turned tabloid the day people realised how to turn online news into click bait revenue streams.
Weather. Has anyone died. Sport scores.
Nothing else of material use.
Better off sitting in the toilet watching funny cat videos.
That's the nature of the revenue model now.
Sitting on the loo watching funny cat videos.
There's probably some fancy marketing lingo for this customer segment...
" no comment" . I had that quite a bit when asking hierarchy for explanations into their competency.
Like I said at the time HM it was a waste of time however doing that probably made you feel better.
"A lot of people look to the likes of Stuff and NZHerald for fair and balanced News."
Ha ha do they - The Herald /ZB nexus is NZ's version of Fox
I prefer straight news - not ex National MPs attempts to rewrite history.
I hate to interrupt your two minutes hate, but the text below is quoted verbatim from the Stuff article you're busy ranting about.
"Reinz House Price Index data, which is considered a more accurate reflection of house prices, shows national prices are up 0.7% year-on-year but down 5.4% in the last three months."
Did any of you read the article before you spouted off? No? Carry on.
Wow, calm down. Are you working for Stuff or something? Lol, which part of my comment showed that my hate and ranting towards Stuff? Yes, I missed that sentence mentioned about house price index. Thanks for pointing that out. But the fact that they barely mentioned about house price index in REINZ report is pretty bias to me. And MSM's selective report and being bias does exist, I am simply pointing out the fact, which most people would agree here. How is this being considered as hate and ranting?
I read the article and it does acknowledge the HPI but obviously they've downplayed it. "Reinz House Price Index data, which is considered a more accurate reflection of house prices, shows national prices are up 0.7% year-on-year but down 5.4% in the last three months."
Data not taking into account of type of property selling or areas where very low numbers of sales distort the statistics. West Coast looks alarmist but there must be a reason why. how many sales?, what kind of properties.
We need a better system for measuring house price changes, perhaps a weighted average based on the proportion of properties of each type in the housing stock, in other words, an expensive one off sale wouldn't distort numbers, when sales volumes are low. Alternatively, how do prices compare with the RVs of the actual houses sold.
The West coast has had a few floods recently, perhaps the houses sold were insurance write offs, as is where is, and then the 100k drop makes a lot of sense. RVs are irrelevant in that case.
Christchurch holding up remarkably well, considering the as is where is market still alive and well.
"We're seeing volatility across the country as the market seeks equilibrium at a more moderate pace,"
Can someone help with translation? What does this mean?
What does this mean?
Nothing.
You could probably come up with a tweaked version of the Postmodernism Generator that would produce these noisebites.
Have you ever struggled to reach a word count for an essay and ended up writing inane sentences to pad your numbers? This is pretty much that.
Yes. Then after graduation spent about a decade trying to unravel the habit 🎓
"Prices are all over the place. Hopefully it settles or I'm going to have to sell the Audi."
Once we see an uptick in sales we shall see the brain drain increasing most would like like to sell before the spring rush of new listings so I am picking July to see many buckle and take a lower price.
I have meet many people who are planning to leave second half this year to Australia some young and some even retired who are sick of the way this country is heading.
I don't think Australia is heading in any different direction. We need to face the fact money wise we can never compete with Australia. They are one huge open cast mine while we grow a bit of grass.
Money-wise? Probably not. Seeing our parks, beaches and mountains flooded and oversubscribed and all the lifestyle advantages of NZ that you accepted were worth the trade-off of just earning less, as your living costs explode and your commutes get longer and longer? Yea, that one's on us.
Having watched it up close during the GFC, Agents and agencies will be stabbing and strangling their suppliers. I feel sorry for their suppliers.
Another 50bp today and more to come as we are still a long way from correcting the cheap finance driven greed out there.
Good that Greg focuses on the significant differences in the data set: actual houses sold. Not just focusing on the price. This is important when placing price movements in any context.
Volumes will be higher when prices return to what buyers can afford.
... or when buyer will make enough money via superinflated salaries while house prices stay more or less the same.
in real terms probably another 15/20% (I hope more than that, but I don't dare to predict it) from here (one or both of the possibilities might occur)
Volumes will be higher when prices return to what buyers can afford.
Seems like a reasonable assumption. I would also suggest that lower sales volume yoy suggests that the market is less bouyant for any number of reasons. I would also look at the absolute difference in sales vol.
If you have a look at RBNZ lending data it’s clear the distribution of buyers skewed towards very high earners. NZ will run out of those at some point and reside to the fact that house prices still have a lot of fat in them.
I doubt volumes are down simple because people are waiting to buy. What’s more likely is that they cannot afford to buy. As the previous comment, volumes will come back as affordability increases. Still a way to go.
Looking forward to the HPI report tomorrow Greg.
All good,10:00am news on Newstalk ZB has just reported prices are up in AKL and other places and first home buyers are coming back to the market.
All is well! Interested to see how this plays out over the next few months when we start hitting negative YoY figures.
Yep, heard that on the news. I just about fell off my chair at what they said. To paraphrase, I think it went like this, "Property prices continue to rise with the national median house price up 4% to $850,000 in the year to June."
Now that may be factually correct, but it's really about as newsworthy as saying, "Over the past 20 years, the national median house price has increased 800%."
They completely missed the point that the market has been in decline in recent months - and that IS newsworthy. I guess they are just like the Herald and other media doing their best to spruik the property market and appease advertisers in the real estate industry.
It would also be like a Weather reporter quoting the 7 day wind speed average directly before a hurricane.
Does anyone know how I could find the HPI report for June 2020 and June 2021? Our son lives in Wellington City and has been shut out of the market since the pandemic started. We foolishly advised him to follow the expert advice and hold off in early 2020 until things steadied out and the prices dropped. Bad advice as it turned out.
Maybe not so bad advice. The way that Wellington prices are crashing they might be getting close to 2020 prices by end of 2022…
Wellington City HPI:
- Jun 2020 = 2724
- Jun 2021 = 3737 (+37% on 2020)
- Jun 2022 = 3049 (+12% on 2020)
I do wonder whether it is coincidence that since house prices have started falling, REINZ have changed the time scale of the charts so that you can't see the enormity of the bubble that could explode (i.e. see what the downside risk could be).
As soon as prices start falling, they've changed the timescale to only the last few years as opposed to the last 30 as they previously showed as prices were exploding...the vertical price appreciation of the last few years looks far more acceptable (rational) that way.
Might just be coincidence.....but perhaps not...who knows.
Anyone on here work at REINZ and want to comment (although one would imagine not....)
Thanks for the advice. From the past 5 June reports. By my rough calcs. 2017 to 2021 increase circa 82%. Heck. Reduced by 18% so far. Wonder how far it will fall. Probably sit on the sidelines and wait.
To be fair - Wellington really lagged the national housing market for most of the early 2010s, so the increases in 2016-2019 period was probably justified as just playing catch up. But indeed would be great to see prices retreat back to 2019 or earlier levels.
OK. Hadn’t realised about Wellington lagging behind. Like you say hope it resets back to 2019 or earlier levels. Fingers crossed. Would help our son out big time.
There you go again, listening to the same people who gave bad advice and said not to buy in 2020, you should learn.
Fool me once, shame on you, fool me twice, shame on me
You did your son a favour
Have to agree - likely prices will be much lower than 2020 soon
Hutt Valley Market Update 11th July
My apologies for no update last week – I unfortunately fell victim to a virus – yes that virus.
Starting to see prices fall quite quickly now in the valley. Homes is indicating that most hutt valley suburbs have negative growth YOY.
A couple of weeks ago I mentioned I was watching 3 properties that sold 12 months ago.
There are also 3 houses I’m closely watching on the market that sold between March and June 2021. I’m interested to see if the owners get what they paid for the properties back or have to take a haircut – one paid a whopping 300K at the time over the March valuation and I suspect they will be pushed to sell it for what they paid for it. Another property is listed for just 40K above what it was bought for – enough to cover the original price plus the agents selling costs.
The house that sold 300K over its March 21 Valuation is listed at a price $115K less than what it sold for 12 months ago- that is some haircut to take.
Current Market Listings
567 houses on the market- Down 17 on two weeks ago –whilst lower than in April and May when listed number of houses peaked at 652 houses in early April, there are still 2.5 times the number this time last year when 250 houses were for sale
Based on the REINZ data which showed that 96 sold in Feb and 104 sold in March and 98 in April and 96 in May giving an average sale of 25 houses per week– 567 houses means there is 22.5 weeks stock on the market.
House Price Reductions
322 houses have a listed price
67% of the houses listed with a price have reduced their price since listing
The average markdown has increased to 97K. (slightly up from 96K two weeks ago)
Of those that have listed prices (pool 322) -57 have reduced their prices by 100K
13 have reduced their prices by over 200K, 6 have reduced their prices by 300K and 2 now has reduced their price by 400K with the biggest reduction been 425K (a total 25% reduction)
The data continues to show the majority of houses listed are under 900K. The Median house price for all 567 listings is now 800K. (Down 30K from a couple of weeks ago and the lowest Median in the last year)
The latest QV valuations (valuations by QV which are updated every month and give an approximation of a houses value) have dropped $150K since Jan for the Hutt.
Meanwhile Homes based on last weeks update is inline with QV and indicating there has been an approximate $160K drop on house prices in the Hutt valley– since the peak which they are indicating was early Nov 21. According to homes prices are now approximately 1.5% less than July.
Houses sold vs houses removed
My records show 223 houses listed with a Price have sold YTD (up 10 from last week).
I have records of a further 191 houses (up 12 from last week) that have been removed from the market unsold YTD.
28 of those houses removed from the market have been listed on the rental market
Length of time on the Market
- 413 houses have been on the market for over 30 days - 73% (last week it was 432)
- 295 houses have been on the market for over 60 days - 52% (last week it was 306)
- 208 houses have been on the market for over 90 days – 37% (last week was 189)
- 118 houses have been on the market for over 120 days (last week was 120) - 21%
- 79 of the houses have been on the market for over 150 days - 14%
The number of houses on the market over 60 days is now over 50%. This has risen from 32% of houses in mid March (one in three), 1 in 3 houses have now been on the market more than 3 months , 1 in 5 have been on the market over 4 months and 1 in 7 have been on the market over 5 months.
The time to sell continues to get longer and longer.
Rental Market
As already noted the rental market has 221 properties for rent (up 14 on two weeks ago ) but up 105 on this time last year, – when just 116 houses were for rent.
Average rental price reduction is $53 a week
As noted last week I have also been noting how many properties are listed for rent over $650 a week.
At the moment the percentage of properties listed at $650 is 38% - two weeks ago it was 45%. This is the lowest number of properties over $650 since Sept 2021 and well below the 53% of houses listed over $650 on the 23rd March.
Outstanding as always, thank you!
David needs to give you a weekly column!
Did you see this article featuring Normandale?
https://www.stuff.co.nz/business/property/300635982/meremere-v-normanda…
And as Wellington CVs were updated by QV in September 2021, I'm now seeing listings below that valuation.
.
As anyone whose bought, say, a Persian rug from the markets of Cairo would know, when the vendor asks for "$100 dollars! It's a bargain at that. I sold one just like it yesterday, for more." your job is to offer $10. They know you will start at offering 20% lower than asked, and you know, that they have added that first 20% on to accommodate that.
That 25% down, you note, is just the start of removing the 'expected' bargaining starting point.
From now on, the real, unvarnished prices will emerge.
Re agents will love that median increase figure in Auckland - Be Quick before you miss out...
So the news on the radio just an hour ago is house prices are UP 1% with no other information to go with it Woo Hoo.
Yeh... so I don't get the point in that.
Trying to reinstate FOMO? Even if that was possible people will not be able to afford the mortgages required now...
Trying to calm/prevent the panic sell? why? (sinister thinking: so the well informed will sell first?)
I don't get the point in misleading people.
Also... pretending all is good there will be even more credit tightening possible if people believe they are not hit.
Yeh, I know RBNZ doesn't give a #### about public opinion... but nevertheless...
So the real question is this.
Why Wellington? What makes Wellington such a poor performer, relative to *most* other regions?
Is it simply the first to fall, or was it relatively too inflated and therefore has the largest scope to fall?
My view is still this... the 'best performing' regions from the 2017 - 2021 boom probably have the biggest room to fall and will. What's worse, is most of these were the bigger centres and in a work-from-anywhere you want kind of world, the *work* can go anywhere, so it's levelling out the playing field somewhat to the attractive provinces.
Wellington has a fairly reliable commuter rail service that runs all the way to Masterton. There's plenty of land in Wairarapa and a lot of building going on. As you say, work from home is becoming more prevalent too.
I work from home 3 days a week and during school holidays. 2 days a week commute to live in a property that's half the price of what you can buy Wellington.
Yeah, covid helped/forced a cultural advancement that we would have otherwise had in 15-20 years.
So many companies today claim to be remote first, and that is very good.
Next step will be to abandon at all the idea of being paid for 8h hours / 5d week and just go with a "be usefull!" philosophy.
Is not a big leap, is just about abandoning hypocrisies.
innocent question... how long for commuting?
Several reasons that I can think of... Wellingtonians are conservative, whereas Aucklanders are happy to weld themselves to a mega mortgage to keep up with the Joneses. Further, who wants to move to Wellington? Wealthy immigrants settle in Auckland (mega wealthy Queenstown). Also I can't see what appeal Wellington holds over our other large cities or regions? Civil servants will also be keeping their wallets shut, feeling nervous that Luxon will cull the huge government headcount growth we've seen over the last few years
Wellington houses have the best "Indoor-Indoor" flow in the country......
You just stated the same stuff I did weeks ago. People think everything is going back to the same as pre COVID but it's not.
How many buyers overseas who purchased in last 12 years are now getting wind the housing market is falling and will probably sell and take profits before crash get into full swing. Watch the numbers coming onto market grow even more.
That's a good point...
I personally saw few abandoned/empty multiM houses getting cleaned/restored/renovated in the past months...
Some cosmetics just for the sake of appreances? :D
Not sure how TTP is going to try and spin this one....
"Just a Flesh Wound" and "'Tis But a Scratch" have been tried in the past....
That all said and done, as Sharron at ANZ says it has been remarkably orderly so far, and as long as the labour markets hold up will probably remain so. She see's the risk to their -12% peak to trough call to the downside.
Got to say there are still a lot of houses selling in this market, sure not many by Auction but volume is only down 17% on last year.
Median selling price up, is a bit of a surprise given the tough environment
Don't try and change the narrative we are in the middle of a crash didn't ya know.
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