Not a single home changed possession in New Zealand in August with 47 fewer properties sold in each day, although prices recorded an increase, according to the Real Estate Institute of New Zealand (REINZ).
The trend has only occurred thrice in the last seven years, as sales nationwide dropped by 20 percent or 1,472 fewer properties for the month compared to the year-ago period.
Across the country, property values rose 8.2 percent to $530,000 year over year. The median price also grew by 10.9percentt, except for Auckland where median prices fell by 1.2 percent versus the same month last year.
Homebuyers in Nelson should take note that median prices in the area have reached $518,000. The market has joined Auckland, Bay of Plenty, Wellington and Tasman with homes worth more than $500,000.
If you are unsure whether a listing is priced in any of these markets correctly, a real estate agent or property lawyer in Wellington such as raineycollins.co.nz can help you determine that.
REINZ CEO Bindi Norwell said that the number of home sales for August should not be an indicator for a market slowdown. On the contrary, the increase in prices signalled that property owners still wait for the right time to sell their homes.
Further, the price movement across the country in terms of overall values and median prices shows that the regional economy remains strong, according to Norwell. Despite the year-over-year drop in Auckland’s median home price, it has remained “relatively stable.”
Homebuyers should be more creative in finding ways on how to acquire properties in New Zealand, as property owners decide to cling to their assets for a bit longer. In the meantime, renting a property may seem like a good idea, as median prices are quite expensive.