Real estate data from around the country portrays a sector ''idling'' along, with national sales down in all provinces, led by a 27% plunge in Otago.
Real Estate Institute of New Zealand (REINZ) chief executive Helen O'Sullivan said this week's election was not the only factor likely affecting house sales, noting August was the 10th consecutive month of sales volumes being below the prior year's levels.
''The real estate market appears to be idling as buyers and perhaps even more so, sellers, await the outcome of the September 20 election. Sales volumes are 7% down from July 2014, and are 16.3% down on 2013 levels,'' she said.
Dunedin sales numbers were down 22%, from 162 to 125, but the median price rose 11%, from $250,500 to $280,000. Otago's median price rose 7.7%, from $235,000 to $253,000.
Otago REINZ regional director Liz Nidd said the shortageof listings around Otago was discouraging some buyers, while some vendors were''too optimistic'' on their pricing expectations.
''First-home buyers appear to be becoming more interested in the market with newer homes being competitive on price and some better banking deals available,'' she said.
The Reserve Bank's 11-month-old loan to value ratio restrictions on banks, limiting the extent of their lending to those with less than a 20% deposit, do not apply to new-builds, which has become an option for many first-home buyers.
For sale
Housing figures compared with August last year.
• 5481 dwellings sold nationally in August 2014, down 16.3%.
• National median at $420,000, up $30,000, or 7.7%.
• Central Otago Lakes recorded the largest increase in median price, with a 10.5% increase to $425,500, followed by Southland with a 9.8% increase to $201,000.
• All 12 regions recorded decrease in sales volume, with Otago recording the largest fall of 27.5%, from 233 to 169 houses.
Source: REINZ
