New Zealand Housing Market Sees Slowing Activity and Price Declines Amid Economic Uncertainty

The housing market continues to experience a slowdown, with April recording the lowest number of new property listings in history, according to latest industry reports. Nationally, there was a decrease of approximately 20 percent in the number of new properties available. Moreover, the average national asking price witnessed a decline in all regions except Marlborough and the West Coast.

The prevailing economic uncertainty has contributed to the hesitancy of both sellers and buyers to take action. Factors such as recent weather events, the ongoing high cost of living, the 50 basis point increase to the OCR (Official Cash Rate), and the upcoming general election have amplified this uncertainty. People in New Zealand prefer a higher level of certainty when making significant financial decisions, and the current climate has created a sense of caution.

In April, the average national asking price stood at around $850,000, which is nearly $100,000 lower compared to the previous year. Although these prices remain historically high, they have decreased from the peak observed in early 2022. Typically, April sees approximately 10,000 new listings entering the market. However, last month witnessed only around 7,100 listings, reflecting a decrease of around 30 percent.

Despite the slowdown, it’s important to note that the market can change rapidly, and certain transactions will continue to occur as people’s circumstances evolve. While demand persists, buyers are adopting a more thoughtful approach and taking longer to make decisions.

In conclusion, the New Zealand housing market has experienced a slowdown in new listings and a decline in average asking prices. Economic uncertainty, along with external factors, has contributed to this cautious atmosphere. Nevertheless, the market remains dynamic, and individuals are still engaged, albeit with a more measured approach.