The property market in June is reflecting the wider economic climate in New Zealand, Real Estate Institute of New Zealand (REINZ) Chief Executive Jen Baird said on Monday.
The total number of properties sold in New Zealand decreased by 25.6 percent year-on-year to 4,356, and by 32.6 percent compared to May 2024, according to the REINZ monthly data release.
"The typical winter lull, compounded by current economic conditions, has contributed to lower levels of activity in the market," Baird said, adding the national sales decreased by 11.1 percent compared to May 2024, reflecting a market performance below expected levels.
The national median price decreased by 1.3 percent year-on-year to 770,000 NZ dollars (about 469,500 U.S. dollars), and saw no change compared with May 2024, the data showed.
Nationally, listings increased by 25.5 percent year-on-year to 7,805, continuing the trend seen all year, with high levels of choice for buyers nationwide, Baird said.
"Regardless of the economic conditions, people's lives change, they grow families and retire and need to make a property decision alongside those changes," she said, adding some properties coming to market was due to high interest rate, cost of living pressure or changing employment circumstances.
There was a notable decrease in buyer activity in June and a reduced sense of urgency, which was compounded by a slight change in tone coming from New Zealand's central bank suggesting that this cycle of interest rate pain may have an end in sight, impacting the overall sentiment within the industry, Baird said.
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