Auckland house price deflation accelerates as sales volumes plummet
By Jenny Ruth
May 14 (BusinessDesk) - The decline in Auckland house prices is starting to accelerate as the number of house sales plummet, not just in Auckland but in most parts of the country.
The latest Real Estate Institute data shows prices fell 2.1 percent in Auckland in April from March and are down 4.4 percent from April last year.
That dragged the national house price inflation rate down to 1.3 percent last month from 2.3 percent in March. House price inflation excluding Auckland eased to 6.7 percent in April from 7.2 percent the month before.
Sales volumes in Auckland fell 16.3 percent compared with April last year, the lowest April figure in 11 years. That dragged the national decline down to 11.5 percent, which REINZ says is the lowest level of sales in April for five years.
Sales volumes fell 25.5 percent in the Bay of Plenty, 12.8 percent in Nelson, Marlborough and Tasman and 11.9 percent in Wellington. Prices fell 1.7 percent in Bay of Plenty for an annual increase of 6.6 percent, but prices in Wellington continue to climb, up 0.3 percent in the month for a 9.6 percent annual increase.
The median number of days it took to sell an Auckland house also crept up by four days to 41. Sales in the rest of the country excluding Auckland took one day more at 36.
Sales volumes compared with April last year fell in most districts with the exceptions of Gisborne, up 9.7 percent, Hawke’s Bay, up 5.4 percent, and the West Coast, up 2.7 percent.
House price inflation in Gisborne and Hawke’s Bay is still in double digits, up 11.2 percent on April last year.
The West Coast price figure is lumped in Tasman, Nelson and Marlborough which together saw an 8.4 percent increase in house price inflation.