REINZ

PHOTO: Jen Baird, Chief Executive at REINZ

Typically a slow month, August market activity was further affected by concerns around rising interest rates and inflation. However, there are early signs of a spring lift as vendors balance price expectations with reality and traffic through open homes increases, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ), home of the most complete, accurate and up-to-date real estate data in New Zealand.

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Across New Zealand, median prices for residential property (excluding sections) decreased 5.9% annually, from $850,000 in August 2021 to $800,000 in August 2022. Month-on-month, this represents a 1.2% decrease from $810,000 in July. The seasonally adjusted figures show a 2.1% decrease in the median price as we moved from July to August, suggesting weaker performance than expected.

The median residential property price for New Zealand excluding Auckland remained unchanged compared to last year at $700,000. There was a month-on-month decrease of 2.8% from $720,000.

Four regions had an annual decrease in the median price in August 2022. Auckland’s median price decreased 8.3% compared to August last year, down from $1,200,000 to $1,100,000. Six of Auckland’s seven territorial authorities (TAs) had a negative annual median price movement in August. Down 13.4%, Waitakere had the greatest decrease, followed by Auckland City where the median price was down 12.3%.

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In Wellington, the median price was down 9.3% annually, from $860,000 to $780,000 in August 2022. Seven of the region’s eight TAs had negative annual median price movements. Carterton saw the median price decrease 25.5%, while Wellington City was down 21.8%. The Manawatu/Whanganui region was down 6.6% from $610,000 to $570,000, and Northland saw a decrease in the median price of 1.2% from $650,000 to $642,000. All other regions saw annual increases in median price. West Coast recorded the greatest percentage increase in the median price — up 25.0% from $280,000 to $350,000. The median price in Marlborough increased 14.5% from $585,000 to $670,000, and Gisborne saw the median price increase 13.2% from $500,000 to $566,000.

Four TAs achieved record medians. More information on activity by region and TA record median prices can be found in the regional commentaries section of this report. Jen Baird, Chief Executive at REINZ, comments: “In August, we saw the national median property price decrease, down 5.9% compared to August last year. Four of the 16 regions reported annual decreases in the median price. With two of those four regions major markets — Auckland and Wellington — affecting the annual movement in the national median price.

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“Since the peak in November 2021, we have seen median prices ease. In the past six months, the median price across New Zealand has decreased by 9.6%, while Wellington has seen a decrease of 21.6% — from $995,000 in February 2022 to $780,000 this month. These are the greatest six-month drops each has experienced since REINZ records began in 1992.

READ THE FULL REPORT HERE:  REINZ Monthly Property Report – August 2022

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