The slowing in the housing market is becoming more pronounced, as a growing supply of houses, unaffordability, and resistance to high prices takes effect.
Photo: RNZ / Nate McKinnon
The Real Estate Institute's (REINZ) latest report shows the house price index, which measures the changing value of properties, rose 14.3 percent in the year ended February, from 19.9 percent annual rate in January.
The seasonally adjusted national median house price, rose $5,000 to $885,000, but the annual growth rate slowed to 13.5 percent.
REINZ chief executive Jen Baird said market sentiment is changing.
"While prices remain strong - increasing annually in all regions - the number of sales continue to trend downwards and an influx of stock across New Zealand is easing demand side pressure, which may in turn further ease price growth in the coming months."
The number of properties sold rose 49 percent on January to 5597, but the number of houses available to sell rose by nearly half to 23,270. The time taken to sell a house also increased over the year from 31 to 42 days.
"While prices are holding despite the change in market dynamics, there is now a fear of over paying (FOOP) amongst buyers, some of whom will be under additional pressure from legislative and fiscal changes impacting their ability to borrow," Baird said.
Auckland's median residential property price increased slightly in February to $1.19 million from the month, to be 8.2 percent higher than the year before, the lowest annual rate in 18 months.
Six regions - Bay of Plenty, Gisborne, Taranaki, Canterbury, Otago, and Southland - notched record median prices, but generally regions reported a reduction in buyer enquiries, open home visits, and fewer auction sales, as well as fewer houses being sold, and taking longer to sell.
"As a shift in sentiment sets in and buyers are less willing, or unable, to pay the prices we saw towards the end of 2021, pressure will come on vendors to adjust their expectations to meet the market," Baird said.