National residential sales fell by 14% in October, compared to the same time last year, according to the latest residential real estate data Real Estate Institute of New Zealand (REINZ).
Sales volumes in the Auckland region fell 12% compared to September and 16% compared to October 2015.
Real Estate Institute of New Zealand (REINZ) spokesperson Bryan Thomson said, “Auckland experienced a lot of strength in the upper end of the market but the lower end appears to be wavering due to the impact of LVRs.”
Thomson said the number of properties for sale as measured by realestate.co.nz has fallen by almost 7,400 over the past year.
“Our data suggests that the impact of the revised LVR rules is having more of an effect on lower-priced sales compared to higher priced sales, with a surge in the percentage of sales over $1million and a noticeable decline in the number of sales below $400,000 compared to 12 months ago.
“Some of this change may be reflective of the overall uplift in prices over the past year as the market for higher-priced properties is continuing as normal, but the market for lower priced properties is becoming more difficult for both buyers and sellers.
“There is some evidence that the normal spring ‘bounce’ in the number of listings has so far been quite weak this year.
"One possible reason for this is that the revised rules could be making it harder for people to know whether to sell, as they wonder if there are buyers about, so they hold their properties back from the market. This could have the result that we’re seeing, which is that supply falls but the demand is still there, so prices keep rising.”
Auckland’s median house price has risen 16% year-on-year to hit a new record high of $868,000 – having lifted $119,750 over the year.
Four regions recorded record median house prices: Northland ($399,000); Waikato/Bay of Plenty ($460,750); Auckland ($868,000); Southland equalled the record high reached in January 2008 of $225,000.