New Zealand Houses Take Longer to Sell as Buyers Remain Cautious

(Bloomberg) -- New Zealand houses are taking longer to sell as high finance costs and a weak economy make buyers more cautious.

The median time to sell a house was 50 days in August, up from 49 in July and 38 in March, Real Estate Institute of New Zealand data showed Friday in Wellington. A three-month average to smooth volatility rose to 49 days, which is the highest since April 2023.

The residential property market has been buffeted by the Reserve Bank’s tight monetary policy, which pushed up home loan interest rates, and a flood of listings that allowed buyers to be more selective. While the central bank began to cut rates in August, a weak labor market and broader economic uncertainty are tipped to keep prices suppressed into next year.

While there are signs of improving market sentiment, “it would be an overstatement to say that we are at a turning point,” said REINZ Chief Executive Jen Baird.

House prices were unchanged in August after falling for the previous five months, according to REINZ’s house price index. From a year ago, prices dropped 0.8% — the first annual decline since November.

House sales fell 5.1% from July while new listings of properties for sale jumped 30% from August last year, today’s report showed.

“We continue to see an increase in the average number of properties listed,” said Baird. “Although the inventory is down slightly compared to last month, the volume of properties for sale continues to provide a lot of choice for buyers.”