We have been saying for some time that the residential real estate market is due for a correction… Well we are in it, here is why:

1/ REINZ:  Press Release and Residential Data Table – April 2017

After record national median prices in March, prices are stable and sales volumes fell across New Zealand during April as the market moved past the traditional March

2/ The number of sales for April 2017 was 5,845, a seasonally adjusted drop of 9% compared to March. Year-on-year, sales volumes declined 31% – REINZ

3/ Days to sell moving higher The number of days to sell eased by one day to 34 days from March, and eased two days compared to April 2016 – REINZ

4/ Million dollar homes show decrease in volumes Between April 2016 and April 2017, the number of homes sold for more than $1 million fell by 23% – REINZ

5/ When the Market corrects… Auckland stutters first (as we are seeing now), Christchurch and Wellington follow next and the the Regions follow last. Last on the BOOM trail – are last to feel the effects

6/ The Labour Party – has created more nervousness amongst Landlords – and this along with the 40% LVR’s for them – will have a impact on them purchasing further

7/  House price inflation has moderated further, especially in Auckland. The slowing in house price inflation partly reflects loan-to-value ratio restrictions and tighter lending conditions – RESERVE BANK

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