House sales fall to decade low
Nationwide sales slipped to 4,411 last month from 4,575 in June and were down 26.7% year-on-year, according to the REINZ. That's still higher than the record low of 3,666 sales in January.
The REINZ Monthly Housing Price Index showed nationwide prices also fell in July, down 1.2% to 3191.5 from June. In the three months to July, the index shows housing prices decreased by 1.1%.
"Given the weakened fundamentals for housing demand, including slowing population growth, rising interest rates and change in tax policy, we expect house prices will come under pressure over the second half of the year, falling around 3% over the next year," said Jane Turner, an economist with ASB.
Compared to 12 months earlier, the REINZ Housing Price Index increased by a paltry 1.8%.
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