Northland property: House sales down by 40 per cent compared to last year

First home buyers relying on bank approval find it difficult to enter the market. Photo / Michael Cunningham

It is a buyers' market but the cost of living is dampening their appetite to buy residential properties in Northland.

OneRoof editor Owen Vaughan said while sellers last year only needed to put up for sale signs outside the house and they'd have a line of people waiting to buy it, all that has now changed.

Vaughan's comments followed the release of REINZ's latest property report that shows Northland's median price remained unchanged from June 2021, sitting at $700,000.

OneRoof editor Owen Vaughan says the housing market is declining compared to the highest ever prices of last year. Photo / Fiona Goodall

The report said owner-occupiers were the most active in the market and investors continued to enquire but not commit.

"First home buyers relying on bank approval find it difficult to enter the market.

"Vendors' price expectations remain difficult to manage; overlooking buyer feedback, some are seeing their properties remain on the market longer.

"Attendance at open homes of well-presented, well-priced properties has been sound, but stock that has been on the market a while is not attracting as much attention."

Kerikeri was now seeing fewer out-of-town buyers; instead, more locals are buying and selling homes, the report said.

Vaughan agreed the market was declining.

"The market has changed and it is no longer a mad rush of 'buyer will pay anything' kind of market.

"Buyers have become picky; vendors now have to adjust the house prices."

The housing market remained strong for the buyers who had the cash and for the sellers with unique property, Vaughan said.

"For example in Northland, Mangawhai Heads or other coastal areas, there are properties that just stand out from the crowd and they are the type of properties buyers will want."

Vaughan suggested first home buyers really needed to think about what they were saving for and what their gain would be.

"If I was a first home buyer, I'd be in a position to look at what I had on my wish list last year and knew I could never get. I'd go through that again.

"There are fewer buyers now compared to six months ago."

Vaughan said fewer properties were selling despite plenty of listings available on the market.

"People are just waiting to see what happens.

"You look around you and people are feeling the high cost of living."

Key points from REINZ property report June 2022 for Northland

• Compared to June 2021, sales are down nearly 40 per cent, and the days to sell have increased by 15 days.

• Compared to May 2022, the median price is down by 3.3 per cent, sales count declines by 21 per cent, and days to sell have increased by 6 days.

• The current days to sell of 53 days is less than the 10-year average for June which is 56 days. There were 30 weeks of inventory in June 2022 which is 15 weeks more than the same time last year.