According to the Mike Pero Mortgages-Infometrics Property Cycle Indicator, the property market is continuing a downward trend. It showed the market to be at its weakest since March last year.Data is collated from Real Estate Institute of New Zealand and t
According to the Mike Pero Mortgages-Infometrics Property Cycle Indicator, the property market is continuing a downward trend. It showed the market to be at its weakest since March last year.
Data is collated from Real Estate Institute of New Zealand and the Property Cycle Indicator measures changes in the time it takes to sell houses, the average prices and the number of homes sold.
The volume of residential houses sold was down 17% in May on the same time last year, and the average price also slipped.
“After falling in April, the median house price was down a further $6,000 in May. House prices are now up 3.7 per cent from May last year, which is the slowest growth rate since July 2009,” Mike Pero Mortgages chief executive Shaun Riley said.
The rate of sales had slowed slightly, with the average property taking 43 days to sell in May compared to 42 days the same month last year.
“For the first time since March last year, houses spent longer on the market than in the same month the previous year,” Mr Riley said. “All regions moved further into negative territory in May, with Auckland also having a negative PCI last month.”
The property cycle indicator measures data from -10 (strong downturn) to +10 (strong upturn). For Auckland, it fell from 2.17 in Paril to -0.95, while Wellington slipped from -0.12 to -2.57.
Otago was down to -6.71 in May from -4.89 in April, Nelson/Marlborough fell from -3.51 to -4.55 and Canterbury/Westland was down from -4.14 in April to -4.90.
Earlier this month the Real Estate Institute reported prices had fallen in May, with QV said values were 4.1% below the 2007 peak.
