New Zealand Sees Record-Low House Sales as Buyers Sidelined

New Zealand house sales fell to a record low in the three months through December as interest-rate hikes and plunging property prices pushed buyers to the sidelines.

(Bloomberg) — New Zealand house sales fell to a record low in the three months through December as interest-rate hikes and plunging property prices pushed buyers to the sidelines.

Sales of residential and lifestyle properties fell to 13,890 in the fourth quarter last year, which was the lowest since records began in 1990, according to CoreLogic New Zealand data published by the Reserve Bank Tuesday in Wellington. The volume is below the previous low of 15,579 seen during the financial crisis of 2008.

Property prices have tumbled as the RBNZ raises interest rates to combat soaring inflation. Prices fell 10.9% in 2022, and are forecast to fall almost as much again over the coming year.

Sales slowed dramatically last year as prices reversed after an almost 30% gain in 2021. Buyers who were tapping cheap loans for fear of missing out quickly stepped away from the market because they were wary of overpaying.

The CoreLogic data is lagged because it includes all settled property sales. The series is subject to revision, with third-quarter sales revised to 15,880 from 14,996 previously.

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