House prices continue slipping - REINZ

House prices are still tracking downward, but there are signs that business will start to pick up in a couple of months, according to the Real Estate Institute of New Zealand (REINZ). There has been a slight fall in the value of properties sold in May across the country, but volumes remain steady as does the length of time required to sell a home, the report says.

Real Estate Institute president Mike Elford said the biggest issue currently facing the industry is a shortage of stock.

"With an apparent reluctance to sell in what is perceived to be a buyers' market, people are tending to hunker down and sit tight on their properties. This, combined with a seasonal trend for people to hibernate rather than put their home on the market in the winter months, has led to an acute shortage of houses on the market."

He believes this trend will continue through June and July.

"Traditionally, people start thinking about selling around August and September as the weather warms up, but until then, we expect turnover to remain consistent with the number of properties that are put on to the market."

To read the full NZ Herald Article click here

Posted: 11 Jun 2009

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