Market Update July 2022

July 2022 Stats Bring Little Ray of Sunshine

There’s one encouraging trend to cheer about in this month’s REINZ data release of July real estate statistics.  North Shore’s median price has gone up to $1.398 million and while our sales volumes are understandably down – given it is winter and mortgage interest rates are changeable, to say the least – we’ve seen a 2% increase on July last year.

However, there were 209 sales, which is a drop of 47% on last year (397) and the number of days to sell has gone up 11 days to 44. North Shore’s median price in July 2020 was $1.075 million and in July 2021 was $1.37 million.

In Rodney, the median price dipped slightly from $1.218 million in July last year to $1.2 million last month. There were 106 sales during last month, and it’s taking 53 days on average to sell a house. Rodney’s July 2020 median price was $930,000, with an increase in July last year to $1.218 million.

In the NorthWest, a median price of $1 million last month meant value was down by 9.1% on this time last year, with 230 sales representing a 48% fall for last month. It is taking on average 43 days to sell a property, an increase of 15 days.

Auctions are continuing to play out in Auckland, accounting for 17.1% of all property sales.

REINZ says the increased volume of stock on the market (107.8% on the same month last year) is not the result of distressed vendors, as New Zealand’s high employment rate and banks’ lending conservatism continues to support the ability for homeowners to handle the impact of rising interest rates. Rather it is because buyers have stepped back; some deterred by successive initiatives to dampen investor appetite, others hampered by changes to the Credit Contracts and Consumer Financing Act (CCCFA) and reintroduction of LVRs.

“Prices have come down from their November 2021 peak, and in July we saw the annual median price decrease nationally — indicating many vendors are adjusting expectations to meet the market. Agents across the country report they are starting to see demand return from first home buyers in the market and some are seeing renewed interest from investors,” REINZ chief executive Jen Baird says.

Auckland’s July median price was down 5.6% to $1.15 million in today’s REINZ data release, compared to July last year. In July 2013, the median price was $560,000; in July 2018 it was $830,000; and in July 2020 it was $918,000.

Market update for North Shore, North West & Rodney market based on REINZ market statistics for July 2022, released 11th August 2022.