The national median selling price declined by $24,650 (-5.1%) in October compared to September, led mainly by a $22,500 (3%) drop in Auckland’s median selling price, according to the Real Estate Institute of New Zealand.
The number of homes sold in September was also down, with 7838 homes selling across the country in October which was down 4.1% compared with September but up 18.6% compared with October last year.
Within the Auckland region the biggest fall in price was in Rodney where October’s median price of $738,000 was down 9.4% compared to September, followed by the North Shore where prices dropped 4% compared to September.
October’s median were down in all districts of the Auckland region except central Auckland (within the boundaries of the former Auckland City Council) where they were unchanged from September.
But the biggest drop in Auckland was in the number of sales , with regional sales volumes in October down 19.4% compared to September, led by Manukau (-26.6%), Central Auckland (-20.2%), North Shore (-18.3%), Waitakere (-18.2%) and Rodney (-13.8%).
There was also an increase in the median days required to sell a home in Auckland, from 29 days in September to 31 in October.
REINZ chief executive Colleen Milne said the decline in sales in Auckland was not unexpected.
“The drop in the number of sales in Auckland in October is the result of a softening of demand over the past few months and the new IRD and bank account rules introduced at the start of October,” she said.
“However the fundamental supply and demand drivers of the Auckland market remain in place and the result for October is indicative of the market adjustment phase as it adapts to these new requirements,”
The median price in the Waikato/Bay of Plenty also declined in October, falling 2.6% to $380,000 compared to September’s median of $390,000.
The biggest falls occurred in Taupo (-7.6%) followed by Mt Maunganui/Papamoa (-7.4%) and Rotorua (-7%).
The number of homes sold in the Waikato/Bay of Plenty was down by 5.8% in October compared to September.
Other regions where the median price fell in October compared to September were Central Otago/Lakes (-5.6%) and Otago (-3.6%) and prices were also down 2.9% in Christchurch with falls of 9.8% in Rangiora and 13.4% in Timaru.
However new record high median prices were set in Northland, Manawatu/Wanganui, Wellington and Nelson/Marlborough in October.
“During winter and into early spring the property markets in a number of regions have been far more active than would normally be expected, thus a slowdown or pause is not surprising following this burst of activity,” Milne said.
Click on the link below to see the REINZ’s full regional sales analysis and reports for October: