Peter Meecham / Stuff
The median price in Auckland rose 0.5% in the year to June.
New Zealand’s median home price rose 4.2% to $850,000 in the year to June, but some regions fared much better than others, according to figures from the Real Estate Institute of New Zealand (Reinz).
Average home prices for the country, excluding Auckland, rose 9% from $680,000 in June last year to $741,000 in June, seasonally adjusted figures show.
From May to June, there was a month-over-month increase of 1.1%, Reinz said.
In Auckland, house prices rose just 0.5% compared to June last year, while the median price now stands at $1.16 million.
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Auckland also recorded a month-on-month increase of 2.8% from May to June.
While Auckland City and Waitakere City’s average annual prices fell, the smaller territorial authorities of Rodney, Papakura and Franklin had double-digit increases, the report said.
Canterbury was the region with the strongest annual percentage growth in June, with a median price increase of 22.1% in the year to June from $565,000 to $690,000, it said.
Waikato had an annual increase of 14.3%, from $735,000 to $840,000.
Four regions showed an annual decline in the median price, it said.
Wellington fell 4.2%, Hawke’s Bay fell 1.4%, Manawatu/Whanganui fell 1.1% and Taranaki fell 0.2%.
Across New Zealand, home sales fell 38.1% in the year to June to 4,721.
Month-on-month sales fell by 17.3%. However, the seasonally adjusted figures from May to June show a 5.8% decline, with sales typically declining during the winter months.
Reinz chief executive Jen Baird said that while sales activity was still lower than expected, the decline was not as strong.
Annual home price performance was slightly better than expected, she said.
“We’re seeing volatility across the country as the market moves toward equilibrium at a more moderate pace.”
Housing affordability continued to be an issue for many home hunters, she said.
“Combined with tighter credit restrictions, higher interest rates and inflation concerns, we are seeing hesitation among buyers.”
The market has stabilized and as strong growth faded in 2021, downward pressure on prices could improve affordability, she said.
“However, this balances out higher mortgage costs and broader economic headwinds that may continue to dampen people’s appetites to enter the market, as buyers or sellers.”
Changes in the Credit Contracts and Consumer Finance Act the regulations had been implemented, which may ease some pressure on borrowers, she said.
“With more stocks in the market, more bargaining power and prices that are not at their peak, for those with access to financing, there is an opportunity here.”
Across New Zealand, 565 homes were auctioned in June, representing 12% of all sales, compared to 26.3% in June 2021.
In May, 10.9% of the homes were auctioned.