House prices are still dropping, with properties taking longer to sell across New Zealand, REINZ January data shows.
However, REINZ chief executive Jen Baird says while prices continue to ease the pace of the decline is slower, and the market has settled at its new pace.
Buyer caution is evident in the drop in sales count, down 23.6 per cent month-on-month and down 39 per cent annually from December 2021. There has also been a 55.3 per cent increase in inventory, now sitting at 26,057 properties.
Baird says with interest rates rising and banks stress testing at 8.1-8.5 per cent, buyers’ ability to secure finance and service a mortgage remains a key issue for those taking their time to purchase. As a result properties are spending longer on the market with 40 being the median days to sell, 11 days longer compared with December 2021.
"Sellers are tending to be more realistic aad uiill usually meet the
