New Zealand Home Prices Continue To Slide

The REINZ has released their report for August 2022 today, and it’s a story of continued weakness across the housing market in New Zealand, which is unsurprising given the significant cash rate hikes imposed by the Reserve Bank there.

So today we will look at the data, and also highlight how the story is still being spun by the industry to try and turn a profoundly negative story positive. Well good luck with that, as the OCR is lifted higher still.

They report that across New Zealand, median prices for residential property (excluding sections) decreased 5.9% annually, from $850,000 in August 2021 to $800,000 in August 2022. Month-on-month, this represents a 1.2% decrease from $810,000 in July. The seasonally adjusted figures show a 2.1% decrease in the median price as we moved from July to August, suggesting weaker performance than expected.

The median residential property price for New Zealand excluding Auckland remained unchanged compared to last year at $700,000. There was a month-on-month decrease of 2.8% from $720,000. A better way to report that, is all gains from the past year have now been extinguished on average.

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Written by Walk The World


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  1. Thanks for the update, Martin.
    Looking at the developing trends, real estate may be starting into a bear market. Younger people don't want a noose around their necks with a mortgage, or to be anchored to one spot, jobs don't last longer than 4 years in most instances. These and many other factors will have negative impact on the real estate market.

  2. REINZ House Price Index from peak

    1) Nationwide: -12.05%
    2) Auckland region: -16.27%
    3) Wellington region: -18.05%

    Remember the current spin narrative that property promoters repeating in the mainstream media – house prices won't crash due as current unemployment is lower than during the GFC and mortgagee sales numbers are currently lower than the GFC.

  3. It hard to escape feeling just the littlest hint of schadenfreude when you recall some of the opinions of ‘professionals’ delivered as sermon over the last year isn’t it Mr. North. But then again, we all have silly moments don’t we. It a lovely afternoon here on September 13, I do wish Armageddon would hurry itself up, so you could let The Cabbage out of his cave.

  4. Remember, for every $50,000 additional amount taken out as a mortgage to finance the purchase of a house at the peak, this could be approximately $100,000 paid out over a 30 year mortgage to the bank as P&I. If the owner occupier had paid $50,000 less for their property purchase, then this is $100,000 that the owner-occupier that could instead have been used for their retirement.

    Mortgage brokers / mortgage advisors with a vested financial self interest won't tell potential owner occupier borrowers this.

  5. Kind of hard to tell for people looking on the antiquated NZ real estate site as virtually none of the ads have advertised prices. Everything is either Auction or price on application. The regional market is what blows my mind – there must be a lot of very cashed up retirees or overseas lifestyle buyers. The situation there is absurd.

  6. Personally it would be wonderful to see a reverse wealth transfer where all the politicians and leveraged investors that continued to gobble up all the properties took the hit and opened up opportunities for our younger hard working people to purchase their own house. I am not seeing any spring lifts I have seen several houses in our area sold in the last 2 months between 860k and 1.2 million and both remain vacant. These purchasers are very wealthy and IMO are concerned about the looming debt crisis and contagion coupled with the bail in law the RBA passed into legislation in 2018 they see these properties in a nice area a good safe place to park their money as it’s safer than in the bank and a diminishing fiat kiwi dollar. Robertson keros stating the government will cover deposits
    to a fluctuating figure in certain banks by mid 23 however I would not trust a single word that comes from anyone in government they have shown exactly how lies have a way of being exposed eventually as people now see what has occurred.

  7. What are you going to do now Cindy? Hold the interest rates down & cause inflation & lose voters? Or increase interest rates to fight inflation & lose voters? Choices, choices!🤣

  8. Thank you, sir–a great, informative video as always. 'If I may poiint out….
    Manawatu==""ManawaTU"…last syllable
    Median Price Indicies"==="….Indices"
    >>>Just glad I'm not a young married looking to buy….there's a Lotto draw tomorrow night…..

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