Real Estate Institute of New Zealand (REINZ) residentila house price index (REINZ Stratified Median Housing Price Index) for August

  • +1.1% m/m
  • +4.8% y/y (prior was -13.0%)

Comments from Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan (bolding mine):

  • “The real estate market appears to be ‘idling’ as buyers and perhaps even more so, sellers, await the outcome of the September 20 election.
  • Sales volumes are 7.0% down from July 2014, and are 16.3% down on 2013 levels.
  • The upcoming election is not the only factor however, as this is the tenth consecutive month of sales volumes being below the prior year’s levels
  • While LVR restrictions are still cited as being a significant factor, lack of listings continues to be an issue in most parts of the country, with low stock levels restricting buyer choice. All eyes are on listing numbers which would normally be increasing at this time of year, but which may be impacted by the timing of the general election
  • Prices are relatively steady with the median price rising by 1% from July, and year on year price increase now at 7.7%. Auckland and Canterbury remain the dominant contributors to the increase in the national median price, with regions outside of these two areas representing just 14% of the increase. Price-wise the residential housing market remains a tale of two cities and the rest of the country, although the volume decline is now apparent in all areas.”