Another flat month for NZ housing market

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The house price index was down 0.6 percent over a year and 1.7 percent over three months.

Photo: RNZ

May was another flat month for the housing market.

The Real Estate Institute said New Zealand's housing market was becoming more settled, but whether that continues will depend on factors like the election and what happens with the conflict in Iran.

It has released data that shows the national median sale price lifted 1.3 percent in May, to $775,000. The number of sales in the month was down 12.6 percent compared to the same time a year earlier but the institute said May last year was a time when the official cash rate was being cut and there was stronger market momentum.

The house price index, which smooths out variations in median sales price caused by the types of property selling, was down 0.6 percent over a year and 1.7 percent over three months.

The institute said cost-of-living pressure and uncertainty about what might happen in November's election were weighing on market sentiment.

It said sales people were reporting household budget pressure was a key consideration for buyers and people were being more cautious and selective.

But in some parts of the country strong commodity prices, more affordable housing and migration out of the main centres was supporting demand. There were record median prices recorded in Canterbury and Southland.

Northland also recorded an increase of 3.9 percent year-on-year to a median $660,000, Taranaki was up 2.9 percent to $602,000 and Auckland's median was up 2.6 percent to $1.005 million.

Overall, house prices are still 16.2 percent below their last peak. Auckland is 23.4 percent below, Wellington is 27.7 percent below and Canterbury 1.1 percent.

The number of properties listed for sale in the month increased 0.3 percent year-on-year to 9521.

The institute's "days to sell" measure remained at 47.

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