The Real Estate Institute of New Zealand (REINZ) has just announced that house prices have declined 12.7% in Auckland, the country’s largest city year on year, while the rest of the country fell 7.5%.
The house price index saw its largest drop since the 1990s as sales were particularly low, fuelling expectations that house prices may continue to fall. This is in line with economists’ previous forecasts.
What is the house price index?
The Institute’s house price index measures the changing value of residential property nationwide. The most recent data showed an annual decrease of 10.9%. This presents a decrease from its peak of 12.4% in November 2021.
ASB economists said, “House prices are likely to experience a pretty chunky double digit fall from their peak in late 2021 – perhaps as high as 20% in nominal terms depending on the data series being looked at. Given inflation remains stubbornly high, this fall could be much larger than this in real terms.”
Across the country, the average number of days taken to sell a property was 44. This is 10 days longer from October 2021, but month-on-month, properties were on the market just three days fewer.
In Auckland, the median house price has decreased 12.7% since October 2021. The average price went from $1.249 million to $1.09m. This represents the region’s sixth consecutive month of median price decrease.
Located on a volcanic peninsula, Auckland is made up of four major centres, Central, the North Shore, Waitakere and Manukau. Although each boasts their own unique characteristics, as a general rule, Auckland’s suburbs are friendly, well-connected and offer fantastic amenities.
The city is home to clean, safe beaches where you can surf, swim, sunbathe, sail, snorkel and scuba. Plus, the surrounding hills are ideal for the active, and provide an easily reachable weekend escape just outside of the city, which gives you a taster of the natural beauty the country is so famous for…and which probably tempted you to move to New Zealand in the first place.
In Wellington, the average house price was down 17.2%, again from October 2021, from $1m to $828,000.
Wellington is located on the southern side of the North Island and is an exciting spot that offers life rich in culture and outdoor activities galore. In Wellington, you’re never more than 15 minutes from the seashore. Nicknamed the “coolest little city in the world” by Lonely Planet, Wellington boasts more cafés, bars and restaurants per capita than New York City. With farmland to the north and ocean to the south, the capital is known for having some of the best restaurants in the country, complemented by excellent regional wines, and a café culture that rivals Melbourne.
Wellington is cultural spot too – it’s the centre of New Zealand’s film industry, has a rich history, great galleries, live music, world-class education and healthcare and a population of friendly, outdoorsy, environmentally-conscious people.