Business. Scoop » The Housing Market Stand-Off
Article – RNZNew Zealand’s property market is stuck in a stand-off, as buyers take their time over their purchases while vendors are unwilling to move on price, the Real Estate Institute says. Susan. . .
Article – RNZNew Zealand’s property market is stuck in a stand-off, as buyers take their time over their purchases while vendors are unwilling to move on price, the Real Estate Institute says. Susan EdmundsMoney CorrespondentNew Zealand’s property market is stuck in a stand-off, as buyers take their time over their purchases while vendors are unwilling to move on price, the Real Estate Institute says. Its latest data shows prices were steady in July. The national median price of $760,000 was down 0. 7 percent compared to July 2025. The house price index, which smoothes out fluctuations caused by the type of properties selling, was down 0. 4 percent. Excluding Auckland, the index was up 0. 2 percent. But the number of properties sold was down 10 percent to 6090. Auckland’s turnover was down 8. 9 percent. There were 7698 new listings and the “days to sell” measure, which represents the length of time itThe institute said it was the fifth-slowest July on record. Infometrics principal economist Brad Olsen said the drop in sales numbers was significant. “I don’t want to overblow things there. It’s not like the housing market is cratering, but I don’t really know if it’s holding its own all that much either. “House sales activity has been slipping back now for five months. And at the same time, you’ve got house prices that are either moving sideways at their absolute best, if not, you know, still basically easing lower, month on month. “Some of those views that housing markets are a bit more balanced or similar is actually quite optimistic for where the housing market sits. ”He said stock numbers had increased in part because sellers were expecting higher prices than they would get in the current market. “They’ve got to get serious. Do they want to sell their house, in which case they probably need to lower the price; or are they happy to sit there spending a bunch of money on a house that’s going to be a whole lot harder to sell because buyers are out there going, ‘Well, I could buy your house, it’s a bit more expensive, or I could find any of the heaps of other houses that I can probably get a bargain on. '”The picture was mixed around the country, though. Otago’s house price index hit an all-time high and Canterbury had the fourth-busiest July since the institute’s records began. Chief executive Lizzy Ryley said the official cash rate increase, cost of living pressure, global uncertainty and the approaching election were all factors. New Zealand’s prices are still down 17 percent from the peak, while Auckland’s are down 25 percent and Wellington’s just over 29 percent. Compared to last year, Auckland’s prices are down 1. 7 percent and Wellington’s 4. 4 percent but Canterbury’s are up 4 percent and Otago’s almost 5 percent. Real Estate Institute chief corporate affairs officer Trey Sarten said the drop in activity was noticeable. “It’s interesting because it’s a bit of an infinite loop because the buyers having more time and choice leads to longer time on market, so the inventory starts to build up and the vendors are not blinking on price, and so there is a bit of a stand-off of who’s going to blink first. “I think generally there is uncertainty across the board, and so whether it’s with New Zealand as a country or globally with events around the world happening, whether that’s political or natural events, there is uncertainty that is preventing people from making a decision, so buyers are continuing to be cautious and sellers are holding out for that right offer to come along. ”He said the steadiness in the market was likely to continue while uncertainty was high. “But it’s certainly not one national story as regions continue to operate on different speeds. ”Content Sourced fromscoop. co. nzOriginal url