REINZ Statistics June 2022

REINZ June data: Annual median price increases nationally, but market activity tempered

The New Zealand median price increased 4.2% annually in June, from $816,000 in June 2021 to $850,000 in June 2022. However, dampened demand sees sales activity down and days to sell are up, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ), home of the most complete, accurate and up-to-date real estate data in New Zealand. 

The median residential property price for New Zealand excluding Auckland increased 9.0% annually from $680,000 in June 2021 to $741,000 in June 2022. There was a month-on-month increase of 1.1% from $733,000.

Following negative annual movement in May, the median price in Auckland increased 0.5% compared to June last year from $1,150,000 to $1,156,000 in June 2022. Auckland also recorded a month-on-month increase of 2.8% — up from $1,125,000 in May. Though Auckland City and Waitakere City recorded negative annual median price movements, the smaller territorial authorities (TAs) of Rodney, Papakura and Franklin had double digit increases in median price.

Jen Baird, Chief Executive at REINZ, comments: “The median price across New Zealand increased 4.2% annually, to $850,000 in June 2022. Month-on-month, there was a 1.2% increase in median price. As we moved from May into June, the seasonally adjusted figures show an increase of 1.5%, indicating performance was marginally better than expected.

“We’re seeing volatility across the country as the market seeks equilibrium at a more moderate pace. While Canterbury saw its median price increase 22.1%, and Waikato was up 14.3%, four regions dipped into negative annual price movements. Wellington was down 4.2% compared to June last year.

“Housing affordability remains an issue for many buyers on the market. Paired with tighter lending restrictions, higher interest rates and concerns over inflation, we are seeing hesitancy amongst buyers.

“As the market stabilises, and the high-growth we saw through 2021 dissipates, downward pressure on prices may improve affordability. However, this is balanced with higher mortgage costs and wider economic headwinds that may continue to temper people’s appetite for entering the market — as a buyer or seller.

“Further changes to the Credit Contracts and Consumer Finance Act (CCCFA) regulations have been implemented, which may alleviate some pressure on borrowers. However, it’s yet to be seen whether the recent changes go far enough to remedy the handbrake on activity they initiated when introduced in December 2021,” Baird observes.

Sales increase month-on-month

Across New Zealand, the number of residential property sales decreased annually by 38.1% in June 2022, from 7,629 in June 2021 to 4,721.

The sales count for New Zealand excluding Auckland decreased 35.0% annually from 4,776 to 3,103.

All regions saw an annual decrease in the number of sales, only West Coast (+31.0%) had a month-on-month increase.

Those with the greatest annual percentage decrease were:

• Auckland, which decreased 43.3% annually from 2,853 to 1,618
• Bay of Plenty, which decreased 41.3% annually from 458 to 269
• Gisborne, which decreased 39.5% annually from 43 to 26
• Taranaki, which decreased 39.4% annually from 198 to 120.

Housing market value increases 0.7% nationally

The REINZ House Price Index (HPI) for New Zealand, which measures the changing value of residential property nationwide, showed an annual increase of 0.7% from 3,843 in June 2021 to 3,870 — down 9.5% from its peak in November 2021. 

For New Zealand excluding Auckland, the HPI increased 2.3% annually — from 3,899 in June 2021 to 3,988 in June 2022. Auckland saw an annual decrease on the house price index of 1.7% — from 3,772 to 3,708.

Median days to sell increases

Across New Zealand, the median number of days to sell (DTS) a property in June was 44 — up 13 compared to June 2021. For New Zealand excluding Auckland, it increased 15 days to 45.

Stock stays on market — listings edge up

Nationally, the total number of properties available for sale increased 89.5% annually, from 13,861 in June 2021 to 26,271. For New Zealand excluding Auckland, inventory increased 107.8%, from 7,612 to 15,820.

Excluding the West Coast (+19.6%), all regions saw inventory levels increase annually by 40% or more. Seven regions saw inventory more than double compared to the same period last year. 

Sales by auction remain tempered

Across New Zealand, 565 properties sold by auction in June representing 12.0% of overall sales compared to 26.3% in June 2021. In May, 10.9% of properties were sold by auction.

For New Zealand excluding Auckland, 9.1% (282) of properties were sold by auction in June 2022 compared to 17.5% in June 2021.

“Auctions attract serious buyers and while you need to be able to buy unconditionally to be successful under the hammer, serious buyers who can only buy conditionally are now being successful in the days post-auction. Over 2021, the market was highly competitive, and auctions increasingly became the preferred method of sale, underpinned by a high clearance rate. As the market has slowed and the pool of buyers able to buy unconditionally has decreased — with more contracts subject to finance or other conditions — homeowners are considering alternatives,” concludes Baird.

Full report can be found here: https://www.reinz.co.nz/Media/Default/Monthly%20Press%20Release%20Assets/Residential/06%20-%20June/REINZ%20Monthly%20Property%20Report%20-%20June%202022.pdf

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