House prices flat in May, buyers taking time to make decisions

The national median sale price slid 1.3 per cent year-on-year, from $780,000 to $770,000, according to REINZ, but there was wide variation by region. Photo / Manfred Gottschalk

House sales and listings were up in May but economists say the market is flat.

The latest Real Estate Institute (REINZ) data today showed more listings nationwide and stabilising median prices.

“With a continued flow of new options coming to the market adding to a large level of stock, this does provide a lot of choice for buyers and a sense that they can take their time to make decisions,” REINZ said.

The institute this morning said the national median sale price decreased by 1.3 per cent year-on-year, from $780,000 to $770,000.

And it decreased by 2.5 per cent month-on-month, from $790,000 to $770,000.

REINZ chief executive Jen Baird said May had higher sales counts, increased stock levels, more listings and properties selling more quickly than a year ago.

“These annual increases contrast with current challenges in securing finance, changes in the job market, and the wait on OCR and interest rate changes,” Baird said.

Westpac economists said May was still a quiet month for the housing market and sales were lower in seasonally adjusted terms.

“We estimate that the REINZ house price index fell by 0.3 per cent in seasonally adjusted terms in May.

“That followed a 0.2 per cent rise in April, and some overs and unders in the previous months,” the economists said.

“All of these movements have been quite modest, and effectively prices have been tracking sideways since September last year.”

Westpac said separate data from realestate.co.nz showed a fall in new listings in May, suggesting property owners were starting to get the message about the current slow patch in the market.

“Even so, sales are still falling behind new listings, with the stock of unsold homes on the market reaching its highest level since 2015.”

ANZ economists said May was a “soggy month” for the market but prices in the cities were fairly stable.

“Price declines in the main centres were relatively modest, with Auckland, Canterbury and Wellington all down just 0.1 per cent,” ANZ added.

“Manawatū-Whanganui was the only region to report a month-on-month rise, up 0.3 per cent.”

West is best

It may have been a soggy month but the country’s rainiest region was the standout price performer over the past 12 months.

The West Coast had the biggest annual price increase by region, up 14.1 per cent from $355,000 to $405,000.

Canterbury had the highest sales count since November 2021, and Gisborne and West Coast had their highest sales counts since December 2021.

But it was slow in the top of the South Island.

“Aside from the Covid lockdown-affected month of May 2020, the Tasman/Nelson/Marlborough region had its lowest May sales count since 2008,” REINZ said.