Latest REINZ data confirms plummeting sales

Despite the expectation of a ‘kick’ from the traditionally more buoyant Spring selling period, sales were down from 6394 in August to 5894 in September.

REINZ president Murray Cleland says the slide in sales had probably helped support prices. He says escalating building costs and the fall in building consent numbers also helped underwrite the residential property market.

“People are constantly making comparisons between the cost of buying land and building a new home and existing properties and I think we have reached that cross-over point now where that comparison might start to favour existing properties.

“It’s the old story, land subdivision costs and timeframes imposed by local authorities plus building consent costs for new construction have risen at such a pace that the price of existing houses is now not looking at all excessive.