New Zealand's median house price continues to drop annually, according to new figures from The Real Estate Institute of New Zealand (REINZ).
In December, the median house price was $790,000, dropping 12.2% from the figures recorded in December 2021.
Across the regions, most areas have seen a drop in the average house price, with Northland (up 3.3%) and Taranaki (up 5.1%) being the only outliers.
REINZ chief executive Jen Baird said the pace of decline has become slower, with the market settling at a new pace.
"We usually see a slowing of activity as we head into the festive season, and we are comparing this December to one that was right at the peak of the pandemic market," she said.
She said that buyer caution had played a factor in the drop, with sales down 23.6% compared with November and down 39% annually.
"This is leaving a lot of choice for buyers with a 55.3% increase in inventory – now sitting at 26,057 properties," Baird said.
Houses are also spending a lot more time on the market, at 40 days - 11 days longer than in December 2021.
With interest rates rising and banks "stress-testing" at 8.1-8.5%, potential buyers' ability to secure finances is the main driver when it comes to the time it takes to sell.
Baird said now is a great time to be in the market for some buyers.
"If you can make the finances work, this is a good time to be a buyer. More stock, less competition and prices continuing to ease will allow those who can get all the ducks in a row to buy well.
"Salespeople around the country say sellers are tending to be more realistic and will usually meet the market through negotiation - although it’s taking longer to sell, sellers are still getting results," she said.
SHARE ME