Sales down but prices hold

Article supplied by REINZ

The number of properties sold in April across New Zealand decreased by -78.5% from the same time last year – from 6,082 to 1,305 – as the level 4 lockdown made it very difficult for property sales to occur, according to the latest data from the Real Estate Institute of New Zealand (REINZ) published this morning.

In Auckland, the number of properties sold in April decreased by -68.8% year-on-year (from 1,725 to 538).

Bindi Norwell CEO of REINZ reported – “The Auckland market remained stable in April with a 9.2% annual increase in median prices to $925,000. Additionally, Papakura District and Waitakere City both achieved record prices of $735,000 and $875,000 respectively. A lot of vendors are meeting the market with good negotiations between parties as both buyers and sellers seem to be motivated. Vendors are listening to feedback and completing deals across various price points. There are fewer first home buyers in the market, but we may see more return with the temporary removal of LVRs. The number of cash buyers will also depend on how stringent bank lending is. There was a lot more activity towards the end of April as we moved into Alert Level 3. Over the next few months, it is expected to be steady, however, it will also depend on how long we stay in lockdown, the management of wider economic policies and access to bank lending. With more than half of the country’s new listings in April in Auckland, it suggests that perhaps Auckland may be the first region to find its ‘new normal’ in the next few months.

For the details of the April 2020 Press Release click HERE