Soft housing activity predicted for the rest of the year amid weak REINZ data
Total residential sales sank to 4,575 last month from 5,206 in May, and 6,040 in June last year. That's only the second time in the past 10 years that a June month has recorded fewer than 5,000 sales, the first time being in 2008. The median number of days to sell rose to 45 from 43 in May and 41 days in the same month a year earlier, and is 15 days longer than when the property market peaked in 2007.
Commonwealth Bank of Australia economist Chris Tennent-Brown said the turnover was softer than normal and activity will probably stay in the doldrums through the rest of the year.
"Demand has weakened since last spring's burst of activity for a variety of reasons," Tennent-Brown said. "Tax changes have reduced the attractiveness of holding investment property, net migration is slowing, and interest rates have been rising."
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
