Prolonged collapse of house prices and sales

REINZ’s latest data show 4,892 sales were made nationally last month compared to 7,486 in the same month last year. Adjusting for seasonality, last month’s sales were down 9.5%. The month performed poorer than expected as there is usually an notable increase in sales during spring.

In Auckland sales were down 8.2% compared to the previous month. For the rest of the country sales fell 2.4% compared to September.

Hesitancy and uncertainty are pervading the market where there was certainty and confidence last year, says Jen Baird, REINZ chief executive.

At the end of last month, the total number of properties on the market was 26,577 – an annual increase of 74%, from 15,217 in October last year.