House sale numbers take a tumble
Auckland total for February at 10-year low and also down around the country
The number of properties sold in Auckland throughout the usually busy month of February has dropped to its lowest point in a decade. Real Estate Institute data shows there were 1358 sales last month — down 41.6 per cent on the volume peak of 2324 in the same month of 2013.
In 2009, 1513 properties were sold in February with the same month in 2010 having recorded the lowest number of sales before this year at 1497.
But the impact has not stopped at Auckland, spreading throughout the country with just 5954 properties sold in total, compared with 6578 in February last year.
Reinz chief executive Bindi Norwell said the Auckland decrease was a surprise but looking at the wider picture it makes sense with prices around the country on the rise.
“February is usually one of the busiest months of the year when it comes to sales volumes, so we were surprised to see that the number of properties sold in Auckland this February fell by 17.9 per cent when compared to the same time last year,” she said.
“The Auckland market has been flat for nearly two years now, so unless people need to move because, for example, they’re upsizing or downsizing their property, then people are just taking their time and not feeling pressured into making housing decisions.”
A number of factors could weigh into the lower level of sale volumes, Norwell said, including a raft of legislative changes impacting the market.
“What we’re hearing from salespeople around the country is that vendors and investors are taking a ‘wait and see’ approach to the housing market — much like you would normally see around election time,” she said.
“This is particularly true in relation to the recently announced capital gains tax proposals from the tax working group.”
Despite the number of sales stalling, average house prices throughout Auckland remain steady with many regions recording an increase.
Due to a slight fall in the number of $1 million-plus properties sold between February 2018 and February 2019, Auckland’s median price fell just 0.6 per cent to $850,000.
Gisborne, Manawatu¯/Whanganui, Southland, Wellington and Hawke’s Bay all hit record median prices in February.
Gisborne was up 25.8 per cent on the same month last year at $390,000, Manawatu¯ /Wanganui was up 23.4 per cent to $352,000, Southland up 20.8 per cent at $290,000, Wellington up 16.2 per cent to $640,000 and Hawke’s Bay up 6.4 per cent at $472,500.
Fifteen out of 16 regions Reinz identified saw an annual increase, with the five regions above highlighting the strength of the market, Norwell said.
“With house prices continuing to rise at such a pace, this puts even more of a dampener on any notions of New Zealand following in Australia’s footsteps in the short to medium term.”