The Reserve Bank of New Zealand's aggressive rate hiking campaign continues to squeeze the country's real estate market, with house prices suffering their sharpest year-on-year decline since the 1990s according to October data from the Real Estate Institute of New Zealand.
REINZ's House Price Index fell 10.9% y/y, notching up the 14th consecutive month showing a year-on-year decline as market sentiment has cooled in the wake of the RBNZ's eight consecutive hikes that have tightened policy by a cumulative 325bp since the first hike in October 2021. The RBNZ is expected to consider a 75bp hike when it meets on November 23. (See MNI BRIEF: CPI Shock May Push 75bp Hike On To RBNZ Radar)
Median prices for residential property fell 7.5% annually, but increased 1.9% from September. New listings are down 4% annually, and the median number of days to sell a property in October was 44 - up 10 days compared to October 2021. However, properties were on the market three days fewer in October compared to September.