Nationwide Demand Decline: Searches per listing on realestate.co.nz are down by 10.4%, and engagement per listing decreased by 7.5% year-on-year.
Slight Price Reduction: CoreLogic reports a 0.1% dip in NZ house prices in April, with the average value now at $933,633.
Economic Pressures: High interest rates, increasing living costs, and recessionary pressures contribute to reduced consumer confidence and demand.
Mortgage Renewals: Approximately 59% of mortgages (by value) are due for renewal within the next year; potentially increasing from rates of around 3% (previous two-year fixed rate) to around 7% now.
Stable Financial System: Despite downturn, the Reserve Bank of New Zealand confirms the strength of the financial system as households adjust to higher rates.
High Stock Levels: April saw an 18.1% increase in housing stock compared to last year, indicating a shift to a buyer's market. New listings are also up nationally by 34.9 per cent year-on-year.
Regional Variability: Some regions like Dunedin and Wellington saw modest gains, while Auckland and Christchurch experienced declines or flat growth.
Future Outlook: The market is assessing potential debt-to-income ratio caps and changes in deposit requirements, adding to the cautious outlook for the coming year. Next RBNZ OCR announcement 22 May 2024.
Source: realestate.co.nz, CoreLogic
