Business

House price movement shows two markets at play

07:45 am on 9 July 2013

House prices fell for the first time in five months in June, but the key markets of Auckland and Canterbury hit record highs.

The Real Estate Institute's house price index fell 0.03% from May but is still 8.4% higher than in June last year. It says the total value of sales was $3.06 billion, down from $3.78 billion in May.

Auckland, Christchurch and other South Island indexes rose to new highs, while other parts of the North Island fell.

Overall, it took one day less to sell in June compared with May.

Institute director Bryan Thomson says the bad weather in June contributed to lower sales but the figures also reveal two different marketplaces operating.

He says spring sales will be closely watched: "We always see an increase in listing activity in the spring, every year no matter what the market looks like. So this year it will be interesting to see if there is an increase in stock over and above what you would expect based on historical trends."