National REINZ median price fell $40,000 in June, now down $110,000 from November high

The housing market slump deepened in July, with sales volumes hitting their lowest point for the month in 12 years and median prices now lower than they were a year ago.

Latest figures from the Real Estate Institute of NZ show 4,678 residential properties were sold in July, a 36.7 per cent drop from 7,391 sold in July last year.

It meant last month’s sales figures were the lowest they have been for the month of July since 2010.

It’s no surprise that in such a quiet market, prices are also falling, with the national median selling price dropping $40,000 in the month to $810,000 from $850,000 in June.

The national median is now 1.8% lower than it was in July last year, the first time it has fallen on an annual basis since July 2011, meaning all capital gains made over the past 12 months have now been wiped out.

The national median price is now down $110,143 since peaking at $920,143 in November last year.

As usual, the movement in the market is led by Auckland, where sales volumes fell to 1,419 in July, down 16% from June and 49% from July last year.

Auckland’s median sale price fell another $50,000 last month to $1,100,000, and is now down $200,000 from its November peak and $65,000 from July from last year.

The REINZ house price index, which takes into account differences in the composition of properties sold, fell 2.9% from July last year and has now fallen 10.8% since it was peaked in November last year.

Other areas that saw significant price declines last month compared to June were Waikato – $50,950, Bay of Plenty – $40,000, Wellington area – $40,900, Otago – $105,000 and Southland – $25,000.

Unsurprisingly, properties are also staying on the market longer, with the median number of days to sell reaching 47 in July, up from 31 in July last year.

“Real estate markets are cyclical, after a period of strong upward movement they are slowing down,” said REINZ chief executive Jen Baird.

“However, prices tend to fall more slowly than they rise and after a period of stability the market tends to regain momentum and midpoint prices begin their ascent.

“We are in the easing phase of the market cycle,” she said.

The interactive graphs below show trends in monthly median selling prices and sales volumes across all regions.

Select chart tabs

Select chart tabs

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