New Zealand’s housing market cooling down gradually, sales volume drops y/y in November

The New Zealand housing market is easing; however, it is cooling down in a gradual manner. The national sales volumes rebounded in November, growing a seasonally adjusted 3.8 percent in sequential terms. But the level of turnover continues to be low, a drop of 5.6 percent year-on-year, as gains in November just partly retraces the 8.9 percent sequential fall in October and declines in five of the prior six months, noted ANZ.

Sales in Auckland continued to decline. The seasonally adjusted turnover in the region is estimated to have dropped further by 1.4 percent sequentially, its lowest level since August 2014. In other regions, the result was more mixed, with decent growth recorded in Hawke’s Bay, Northland, Otago, Canterbury and Southland, countered by declines in Central Otago, and Wellington. Excluding Auckland, sales are estimated to have risen 6.4 percent month-on-month in November, stated ANZ.

The median time to sell fell slightly. Nationwide, the median number of days to sale dropped to 34.2 days, which is down half a day from October. It continues to be below its historical average, it continues to be still up from the lows recorded in June.

The preferred gauge of house prices, the REINZ Stratified House Price Index, rose 0.9 percent in sequential terms. This is the third straight monthly rise, the pace at which prices are increasing has moderated. In three-month annualized terms, prices at currently at a 4.6 percent pace, which is down from almost 25 percent in July.

Auckland has seen a similar pace of deceleration, with prices dropping 0.3 percent month-on-month in November, and three-month annualized prices running at a pace of 5.6 percent. For completeness, median house prices, which are susceptible to the composition of houses sold dropped 0.5 percent month-on-month and 13 percent year-on-year, stated ANZ.

At 05:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was neutral at -14.7301, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 95.6429. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex