Disappointing year end to tough housing market

According to REINZ, unconditional sales hit their lowest level for a December month since 1995. And the 4,336 sales picked up by REINZ at the end of last year fell short of the figure recorded back in 2008 by one.

Regardless of any future revisions to December sales data, the level of activity is indicative of a weak housing market, say Kiwibank economists, Jarrod Kerr, chief economist, Jeremy Couchman and Mary Jo Vergara.

House prices posted further losses. The REINZ House Price Index (HPI), down 1.3% seasonally adjusted, recorded the 13th consecutive monthly fall. Over the December quarter as a whole, the HPI was 12.7% down on a year ago in line with Kiwibank’s latest forecast. And the median house price across th4e country managed to fall back below $800k. However, to put current house price falls in context prices are back to levels seen in early 2021.

Adding to the downward pressure in prices is the growing supply of listed property, despite fewer new listings each month says Kerr. Total listed property is trending higher according to realesate.co.nz. Listings of 26,000 plus were registered with the site in