New Zealand home prices rise in February, sales steady

[SYDNEY] New Zealand home prices rose in February while sales activity remained broadly steady, although properties took longer to sell as both buyers and sellers waited for the right price, the Real Estate Institute of New Zealand (REINZ) said on Monday.

Seasonally adjusted median house prices increased 2.4 per cent from January, and were 3.2 per cent higher than a year earlier, REINZ data showed. National home sales jumped 6.6 per cent from January but were only slightly higher on an annual basis, rising 0.3 per cent.

Major regions including Auckland, the country’s largest city, recorded their strongest February sales levels in about five years, data showed.

“Sales naturally fluctuate over the summer months,” REINZ chief executive Lizzy Ryley said. “Once we adjust for seasonal trends, the February data shows steady growth compared with January.”

Ryley said the housing market was expected to continue its stable growth through the autumn months.

However, she noted that the Reserve Bank of New Zealand’s decision last month to hold the official cash rate at 2.25 per cent signalled that the period of falling mortgage rates had likely come to an end.

SEE ALSO

New Zealand’s manufacturing activity steady in February: survey

Air New Zealand suspends guidance as jet fuel fluctuates

New Zealand’s economy beating forecast, says finance minister

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

REINZ also said it was closely monitoring the conflict in the Middle East, warning it could influence household confidence and push up living costs, potentially weighing on the housing market. REUTERS