Auckland and Wellington both recorded the longest period it has ever taken a property to sell in August last month, and Wellington had its lowest-ever August sales count.
The Real Estate Institute has released its data for the month.
It shows Auckland recorded a median 54 days to sell compared to a 10-year average for August of 43.
Wellington’s median was 60, compared to a 10-year average for August of 41.
Nationwide, sales numbers were down 13 percent compared to the same time a year earlier.
The 5430 properties that changed hands was the sixth-lowest number for any August in 35 years.
The house price index, which smooths out variation in median price data cause by the type of homes selling, was down 0.9 percent year-on-year.
Excluding Auckland, it was down 0.2 percent.
Nationally, house prices remain 17.1 percent below their peak. They are just under 25 percent below in Auckland, 30.3 percent below the peak in Wellington, but 0.8 percent below in Canterbury and 1.1 percent below in Otago and Southland.
Chief executive Lizzy Ryley said within the national figures, there was significant variation. The South Island’s housing market was much stronger than the North Island’s. Southland had a median price of $505,000 up 7.4 percent year-on-year. Tasman was up 5.6 percent, Northland up 3.6 percent, West Coast up 2.5 percent and Canterbury up 1.5 percent.
She said Auckland and Wellington buyers seemed to feel they could take their time because there was no need to hurry.
“Whereas if you look into the South Island, particularly down in Southland, the market seems to move itself towards that slight fear of missing out. At the moment in Auckland, there is no real fear of missing out. The market feels stable and so people make decisions when they are ready to make decisions.”
She said household costs, job security, global uncertainty and the lead-up to the election were all shaping buyer and seller sentiment.
“Stock levels are playing an important role in how individual markets are moving,” she said.
“Where buyers have a lot of options, they can take more time before deciding. In other areas with fewer new listings, competition is helping maintain momentum.” The number of new listings in the month fell 5.1 percent year-on-year to 8326.
“Our members tell us they generally expect conditions to remain broadly steady over the coming months, with improving enquiry levels in some areas supporting cautious optimism,” she said.
“Borrowing costs, job security, the lead-up to the general election and local stock levels will also influence activity. That makes guidance from local real estate professionals particularly valuable for people considering their next move.”
Ryley said it was an “amazing” time to get into he market as a first-home buyer.
“I think it’s a very, very stable market in which both buyers and sellers can feel relatively confident to do what they want to do when they need to do it. I don’t believe we are going to see anything shift dramatically.”
Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make and spend money