Home sales rise despite falling prices

Despite falling home prices, the real estate market is booming with increased sales activity.

The REINZ housing price index, which measures changes in real estate values, fell 9 percent in June from a year earlier.

Median seasonally adjusted home prices fell just 8.3% over the period to $780,000, roughly flat compared to May.

The total number of properties sold increased by nearly 10% year-on-year on a seasonally adjusted basis.

The median price in Auckland fell 12.5% ​​year-on-year to $1 million, while the median number of days sold in June remained at 49, unchanged from May and four days more than last June. .

REINZ CEO Jen Baird said June was a typically slow month for the real estate market, but this year was busier than usual.

“Although sales were up year-over-year, they were down slightly month-over-month, and the directional shift in inventory levels across the country has resulted in a continued decline in the level of new properties entering the market. , the number of sales is increasing,” Baird said.

New listings fell 21% year-on-year and 16% from May.

“Salespeople across the country are reporting increased first homebuyer activity at open houses due to LVR easing.” [loan to value ratios] The restrictions that went into effect on June 1 have encouraged more people to go out,” Baird said.

He said activity was picking up but he was wary of interest rates, inflationary pressures and the upcoming elections.

Nationwide, Nelson recorded the biggest drop in median prices compared to a year ago, falling 17.2% to $650,000 on a seasonally adjusted basis.

The West Coast had the largest annual increase, up 35.4% to $400,000.

Annual median price change for selected regions (seasonally adjusted)

• Oakland $1 million, down 12.5%
• Bay of Plenty $840,000, down 6.7%
• Waikato $737,300, down 12.2%
• Wellington $765,000, down 9.8%
• Canterbury $655,000, down 4.4%
• Otago $650,000, down 13.3%