Spring housing market activity was subdued across Aotearoa New Zealand according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ).
Buyers remained hesitant as rising interest rates, access to finance and concerns around the economy continued to create uncertainty in the market.
Nationally, the number of residential sales dropped by more than a third, down 36.1% from 8,644 in November 2021, to 5,525 in November 2022.
All residential sales volumes excluding Auckland decreased by 31.7% annually, from 5,462 to 3,728 although activity had improved 5.6% since the October figures.
The greatest annual percentage drops were recorded in:
• Gisborne, which decreased 45.2% from 62 to 34 transactions
• Auckland, -43.5% from 3,182 to 1,797
• Manawatu/Whanganui, -39.1% from 414 to 252
• Wellington, -36.2% from 870 to 555.
REINZ chief executive Jen Baird said the November figures compared a market at its peak in 2021 with one that had moderated over the past 12 months.
“In a recent survey of REINZ membership, conducted with economist Tony Alexander, real estate professionals reported the top concerns of buyers in the market are high interest rates, access to finance and purchasing and seeing prices soften,” she said.
“Add to these concerns of recession, global economic and geo-political uncertainty. In late November, the Reserve Bank of New Zealand (RBNZ) raised the OCR by a record 75 basis points to 4.25%. The central bank also forecasts a peak of 5.5% next year and predicts a further rise in inflation.
“The immediate effect on the real estate market was more hesitancy.
“Buyers are again weighing up the likely impact on mortgage rates with current downward pressure on property prices.”
However Ms Baird said that while the market had been subdued, the 5,525 homes transacted during November showed that now was still the right time for many homeowners to sell.