Lots of real estate agents but fewer sales

House buyers and sellers are sitting on their hands, new data shows.

Real Estate Institute figures reveal the number of residential properties sold in Auckland in February was down 17.9 per cent compared with the year before.

The 1358 sold in the city in the month was the lowest number for any non-january month since October 2010.

With 6387 salespeople holding active licences in Auckland, there were more than four agents for every sale. Economist Cameron Bagrie, of Bagrie Economics, said the turnover drop showed a disconnect between what sellers wanted and what buyers were prepared to pay.

Northland also had an activity slump, with the 169 sales across 531 salespeople in February down 27.2 per cent on a year earlier.

Nelson’s turnover fell 20 per cent to 96 sales for the 392 salespeople in the Nelson and Marlborough region.

Excluding Auckland, sales in the rest of the country were down 6.6 per cent year-on-year.

Real Estate Institute chief executive Bindi Norwell said it was becoming tougher to be a real estate agent, and not just because of dropping sales numbers.

She said new rules, such as anti-money laundering requirements, were adding to their workload.

The number of registered salespeople was holding steady year-on-year.

Norwell said February was normally busy but sales numbers dropped in 13 out of 16 regions.

‘‘The lower level of sales volumes compared with the same time last year can be attributed to a number of things – the raft of legislative changes impacting the housing market at the moment, the increasing difficulty in accessing finance and vendors’ pricing expectations.

‘‘What we’re hearing from around the country is that vendors and investors are taking a ‘wait and see’ approach – much like you would normally see around election time. This is particularly true in relation to the recently announced capital gains tax proposals from the Tax Working Group.’’

Brad Olsen, economist at Infometrics, said affordability and Government policy were spooking the housing market.

‘‘Investors are shying away ... with concerns about ... a potential capital gains tax, the ringfencing of rental losses, and tougher standards for rental property.

‘‘Auckland prices remain unaffordable for many potential buyers.’’

Median house prices nationwide increased by 5.7 per cent in February to $560,000, up from $530,000 in February 2018.

Median prices excluding Auckland hit a record $490,000, up 8.9 per cent from $450,000 in February last year.

Median house prices in Auckland returned to the $850,000 mark – down 0.6 per cent on last year’s figure of $855,000.