Looming election cools house sales - REINZ

Photo / Dean Purcell.

Next Saturday's election has been blamed for putting a dampener on real estate sales.

The Real Estate Institute has released its monthly data for August showing dwelling sales dropped 7 per cent from last month and 16.3 per cent annually but prices are still rising.

The national median price was $420,000 in August an increase of $30,000 compared to August 2013, and an increase of $4,000 from July.

Helen O'Sullivan, REINZ chief executive, blamed the election, also cited by Barfoot & Thompson and Harcourts for less activity.

"The real estate market appears to be idling as buyers and perhaps even more so, sellers, await the outcome of the September 20 election," O'Sullivan said. " The upcoming election is not the only factor however, as this is the tenth consecutive month of sales volumes being below the prior year's levels.

"While LVR restrictions are still cited as being a significant factor, lack of listings continues to be an issue in most parts of the country, with low stock levels restricting buyer choice. All eyes are on listing numbers which would normally be increasing at this time of year, but which may be impacted by the timing of the general election.

"Prices are relatively steady with the median price rising by 1 per cent from July, and year on year price increase now at 7.7 per cent. Auckland and Canterbury remain the dominant contributors to the increase in the national median price, with regions outside of these two areas representing just 14 per cent of the increase. Price-wise the residential housing market remains a tale of two cities and the rest of the country, although the volume decline is now apparent in all areas."

Auckland's median was $614,050 last month compared to $610,000 in July, well up on the $563,000 last August.