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Liz Kendall, Senior Economist at ANZ, notes that New Zealand’s house prices increased 0.4% m/m in July, after a flat print in June and declines in the two months prior to that.  

Key Quotes

“Annual house price inflation ticked up to 4.1% y/y (3mma) from 3.7% in June.”

Nationwide  housing market activity fell 3.8% in July, after falling 6.5% in June.”

Sales have taken a step down in the past couple of months, with 5,900 sales in July (seasonally adjusted), after running at about 6,500 per month between November and May.  We estimate that sales are 2.2% higher than a year ago (3mma).”

“The Auckland market remains weak.  There were 1,700 sales in Auckland, with house sales down 13% over the year to date.”

Housing markets are tight outside of Auckland.  Prices increased 0.9% m/m in the rest of New Zealand to be up 7% over the past year (3mma).”

We expect softness in the Auckland market to persist, in light of investor caution and affordability constraints.”