New Zealand houses take longer to sell as buyers bide their time

NEW Zealand houses are taking longer to sell as high interest rates and a weak economy make buyers more selective.

The median time to sell a house was 43 days in April, up from 38 days in March, Real Estate Institute of New Zealand (Reinz) data showed on Tuesday (May 14) in Wellington. A three-month average to smooth volatility rose to 44 days in April after falling as low as 36 days in December.

Sluggish sales and falling prices add to signs that the Reserve Bank of New Zealand’s tight monetary policy is delaying any sustained residential property market recovery. The central bank has said it does not expect to pivot to interest-rate cuts until 2025 to be sure it has inflation under control.

“The likelihood of interest rates staying at these elevated levels for a while, and more talk of job losses, continues to lead to more caution among some buyers,” said Reinz chief executive Jen Baird. “There are vendors who will need to sell and don’t want to wait anymore. These vendors will need to set realistic price expectations, both for prices and the time needed to sell their property.”

House prices fell 0.8 per cent in April following a 1.2 per cent decline in March, according to Reinz’s house price index. From a year ago, prices gained 2.8 per cent.

House sales fell 17 per cent from March while new listings of properties for sale surged 35 per cent from April last year, today’s report showed.

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With more properties to choose from, buyers have less competition and are more comfortable taking a stronger approach to their negotiations, Baird said. BLOOMBERG