Auckland house prices join the deflation

By Leith van Onselen

The REINZ has released its house price data for July, which revealed a 0.2% seasonally adjusted monthly rise in the national median house price, with prices also up 6.6% year-on-year:

Outside of Auckland, seasonally adjusted house prices rose by 0.2% in July, with prices up 8.6% year-on-year.

Looking at the major cities, Auckland’s seasonally adjusted median house price rose by 0.3% and was up by 0.2% year-on-year. Christchurch’s (Canterbury) fell by 0.2% in July but was up 1.5% year-on-year. Whereas Wellington’s median house price fell 2.5% in July but was up 11.0% year-on-year:

That said, the REINZ’s raw median house price series shows that Auckland values are lower than two years ago, suggesting capital gains have been non-existent for the last two years:

Sales volumes also remain weak, down by 1.0% year-on-year in seasonally adjusted terms across New Zealand, with most regions falling:

Finally, here are the sales by price point:

As you can see, sales are up across all price points with the exception of properties valued under $500,000.

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