The number of residential property sales across New Zealand eased 33.5% in March from this time a year ago.
The Auckland market decreased 41% year-on-year, much in line with our local markets, with the North Shore seeing a 40.7% decrease in sales and a 41.1% in the North West.
Despite the reduced number of sales, prices are holding albeit with the rate of price growth slowing. The Auckland median price increased 6.7% year-on-year to $1,200,000. While the North Shore showed signs of slowing – a 1.8% increase year-on-year to $1,380,000 and a 10.7% rise to $1,100,000 for the North West.
The deceleration in price growth can be attributed to a number of factors – tighter lending restrictions, LVRs, inflation and increasing interest rates.
As the market adjusts to the new normal, sellers are taking their time bringing their price expectations in line with the market. This, coupled with buyers willing to wait for the right property and negotiating on price has resulted in a marked effect on sales volumes.