The property market has slowed down further, with the number of sales falling and houses taking longer to sell.
(File image) Fewer houses sold and properties took longer to sell, REINZ's residential property report said. Photo: RNZ / Nate McKinnon
The Real Estate Institute's (REINZ) latest residential property report shows the house price index, which measures the changing value of properties, increased 6.3 percent in the year ended April compared with a 9 percent increase in March.
The seasonally adjusted national median house price increased 10.1 percent from a year ago to $875,000.
But the month-on-month median price is down 1.7 percent from March, when it hit $890,000.
The seasonally adjusted median house price excluding Auckland is up 11.5 percent from April 2021 to $755,000.
REINZ chief executive Jen Baird said despite the weakening demand and a drop in sales, the prices remained high.
"We're seeing a slowdown in activity, there is more stock staying on the market for longer, and while annual price growth is more moderate, the month-on-month trend shows a fall in median prices."
The number of houses sold fell 35 percent from a year ago with 4860 sold, and the median number of days to sell increased by nine to 38 days across the country.
"Falling attendance at open homes and auction rooms, and a decrease in buyer enquiries were reported across New Zealand, exacerbated by a spate of public holidays through April.
"Tighter lending criteria, LVRs, and increasing interest rates coupled with inflation continue to create challenges for some buyers, particularly first home buyers and investors," Baird said.
However, people backed by equity and with job security in a low unemployment environment will continue to have opportunities in the market, as more stock increased choice.
"Owner-occupiers are the most present and active in the market, so while we see a softening in the mid to low price range, interest is solid in the mid to high bracket.
"Increases to the OCR, most recently by 0.5 percent in April, have further impacted affordability, and with the cost to own increasing, property may seem less attractive," Baird said.
But those backed by equity were expecting to and were paying less, she said.
"We have heard buyers are increasingly negotiating strongly, suggesting power has shifted from sellers. This may continue in coming months, and those committed to selling their property will adjust to meet the market."