You are using an older browser version. Please use a supported version for the best MSN experience.

Property sales slump in September

NZ Newswire logoNZ Newswire 11/10/2017 Tina Morrison

High angle view of detached homes in Auckland, New Zealand (file) © getty / georgeclerk High angle view of detached homes in Auckland, New Zealand (file) The number of property sales across New Zealand dropped 26 per cent last month, with all 16 regions recording a decline, according to the Real Estate Institute.

A total of 5428 properties were sold across the country in September, down from 7352 sales in September last year and marking the lowest level for the month in six years, REINZ said.

The median number of days it took to sell a property increased to 34 from 31 in September 2016 while the number of auctions, which is generally an indicator of a heated housing market, slid 55 per cent.

The steam is coming out of the country's heated property market after moves by the central bank to clamp down on the level of high loan-to-value ratio mortgages amid concern rising prices were a risk to the nation's financial stability.

The latest figures may also have been impacted by wet weather and uncertainty around the general election, with some parties campaigning on reducing the record immigration levels which have stoked housing demand.

"The soggy start to spring combined with the 'election effect' has had a significant impact on the number of sales across the country - this is the lowest number of sales in eight months, and the lowest number of sales in the month of September for six years," said REINZ chief executive Bindi Norwell.

"As the weather warms up we expect the market to pick up again.

"It's not all doom and gloom as there are pockets of the country experiencing increases month-on-month and median prices are increasing in the majority of regions across the country."

* The REINZ house price index edged up 0.7 per cent in September from August to a record 2699

* All regions except Auckland, Taranaki and Canterbury reached a new high during September

* The number of properties available for sale fell 2.6 per cent to 21,727 from year-earlier levels

* Auckland properties for sale jumped 14 per cent to 7429

* Outside Auckland the house sale inventory fell 9.5 per cent to 14,298

* Median house price lifted 1.2 per cent to $525,000 compared with the year earlier.

* Auckland's median price remained flat at $845,000

* Excluding Auckland, the median price lifted 5.7 per cent.

image beaconimage beaconimage beacon