Last week, QV released its house price index for August, with values nationally collapsing 5.5% over the quarter.
This came as the number of homes listed on Realestate.co.nz ballooned by 108% in August compared with a year earlier, with mortgage demand also collapsing in response to the Reserve Bank’s aggressive rate hikes:
The pain continues, with the Real Estate Institute of New Zealand (REINZ) releasing its House Price Index (HPI) for August, which registered a 1.3% decline over the month, a 4.7% fall over the quarter, and a 5.8% decrease year-on-year:
The number of residential property sales also fell by 18.3% over the year to August.
The next table shows that quarterly values declined across all 26 urban districts, according to the REINZ HPI:
Commenting on the result, REINZ CEO Jen Baird noted:
“Since the peak in November 2021, we have seen median prices ease. In the past six months, the median price across New Zealand has decreased by 9.6%, while Wellington has seen a decrease of 21.6% — from $995,000 in February 2022 to $780,000 this month. These are the greatest six-month drops each has experienced since REINZ records began in 1992″.
So, after experiencing one of the world’s greatest house price booms over the pandemic, New Zealand housing is now experiencing one of the biggest busts.
