Don’t expect a housing market turn

This comes from a steep drop in house sales from already-depressed levels, down by 12% in June in seasonally adjusted terms, REINZ figures show. Sales are now at their lowest in more than a decade.

Westpac acting chief economist Michael Gordon says falling sales are usually a harbinger of further price declines, although that relationship took a while to assert itself in 2021.

Wellington, one of the most overheated regions during the run-up in prices, is now down 14% from its peak. Auckland has also been hit hard, down 10% from its peak.

In contrast, Canterbury, which had become relatively undervalued in previous years, and Otago, benefiting from the return of tourists to the Queenstown region, are down by less than 2%.