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Liz Kendall, Senior Economist at ANZ, notes that New Zealand’s House prices were flat in June as the REINZ House Price Index (HPI) was flat (sa) after falling 0.3 and 0.2% in each of the previous two months.

Key Quotes

“Annual house price inflation moderated to 3.7% (3mma).  On the whole, the June quarter was on the softer side, with house prices flat in the quarter.”

Nationwide  housing market activity pared back  to 6,100 sales in the month (sa), after running at about 6,500 per month since November.  Sales fell 7.5% m/m (to be down 1.7% y/y).”

Underpinning the nationwide figures, regional divergence is stark.  In Auckland, house prices fell 0.3% m/m to be down 1.5% over the June quarter.”

The Auckland market is expected to remain subdued.”

Housing markets are tight outside of Auckland.  While sales have fallen, so too  have listings – and inventories and days to sell are low.”

“The housing market has softened recently and this could persist, with affordability constraints, new Government policies, risks around credit availability, and a softer pulse in the economy more broadly providing headwinds.”