REINZ data for December showed another small uptick (0.2%) in house prices over the month. However, prices are still down around 1% compared to last year. And it was a very slow month – even after accounting for the usual end-of-year slowdown. Monthly sales were down 9%. And the seasonally adjusted median days to sell jumped up to the highest it’s been in nearly two years (50 days, up from 47). Certainly not helped by the largest slump in new listings for any December month in the past 17 years. It seems sellers are staying cautious and holding off for bigger gains to be made. And fair enough. For now, things are still sluggish on the ground. But we’re hopeful for housing this year as lower interest rates spark life back into the market. Our view - we expect to see house price growth of about 6% this year.
All content is general commentary, research and information only and isn’t financial or investment advice. This information doesn’t take into account your objectives, financial situation or needs, and its contents shouldn’t be relied on or used as a basis for entering into any products described in it. The views expressed are those of the authors and are based on information reasonably believed but not warranted to be or remain correct. Any views or information, while given in good faith, aren’t necessarily the views of Kiwibank Limited and are given with an express disclaimer of responsibility. Except where contrary to law, Kiwibank and its related entities aren’t liable for the information and no right of action shall arise or can be taken against any of the authors, Kiwibank Limited or its employees either directly or indirectly as a result of any views expressed from this information.
