House prices drop 10.9%, sales volumes down 29 per cent

Auckland’s median was at $995,000, down 15 per cent annually. Photo / Manfred Gottschalk

New Zealand house prices fell 10.9 per cent annually in the year to April, sales volumes were down 29 per cent and the number of unsold properties is rising.

The Real Estate Institute said today the national median house price at the end of April was $780,000 and 28,643 residential properties were now for sale throughout the country.

In April, 4262 properties were sold, down 29 per cent on the 5984 sold in March and down 15.3 per cent annually.

Jen Baird, REINZ chief executive, blamed a combination of factors for the low sales numbers and falling median prices.

“New Zealanders are waiting for the peak of inflation, a settling in interest rates and some clarity around the outcome of this year’s election.

“This is what is keeping activity low. However, for those looking to buy, lower prices and good stock levels mean there are opportunities as we head into the cooler months,” she said.

School holidays in April also had an effect, she said.

The REINZ House Price Index, which measures the changing values, dropped 12 per cent nationally and 10.7 per cent when Auckland was excluded.

Auckland’s median was at $995,000, down 15 per cent annually. There were fewer first home buyers in the market this month and local salespeople believe this may be due to Australia’s immigration changes for Kiwis, Baird said.

It takes three extra days to sell an Auckland place now compared to a year ago.

Sales volumes dropped 23 per cetn in the city annually. The median fell 0.5 per cent from March to April. Auckland City’s median is $1.1m, Franklin $820,000.