SYDNEY: New Zealand home prices slipped in October as higher living costs and a weak job market weighed on buyer sentiment, the Real Estate Institute of New Zealand (REINZ) said on Friday.
Seasonally adjusted median house prices fell 0.7 per cent from September and were down 3.4 per cent from a year earlier, REINZ data showed.
National home sales were down more than 10 per cent from a month earlier and slumped 23 per cent from a year earlier, as the usual spring lift in sales did not emerge and properties took slightly longer to sell than they did a year prior.
“October’s data shows a market that remains measured,” said REINZ chief executive Lizzy Ryley.
“Greater choice is allowing buyers to assess their options carefully, while our members observed a measured approach among some vendors and buyers in the lead-up to the general election.”
New Zealanders are facing weeks of uncertainty over who will govern the country after a general election on November 7, with the current coalition holding a slim majority. But a potentially decisive slice of votes has yet to be counted.
Some buyers and vendors may continue to wait for greater clarity until the next government is formed, though REINZ members expect the market to remain steady in the near term. And they hope sales activity will build up before the summer holidays.
A slight easing of inflation in the September quarter and the central bank’s surprise decision to hold rates on October 28 may improve sentiment, “but it may take time for these signals to flow through to confidence and activity,” Ryley said.