NZ: House sales fell 7% in February - ANZ

Liz Kendall, senior economist at ANZ, notes that the New Zealand’s REINZ house sales fell 7% in February (sa, ANZ estimate), after an eager start to the year (up 13% in January).

Key Quotes

“The data remain whippy, but the January lift was likely boosted by the RBNZ’s relaxation of LVR restrictions, which we expected would only provide a temporary boost.”

“House prices were up 0.7% m/m in February to be 1% higher over the past three months. Prices have been boosted by easing in LVR restrictions and falls in mortgage rates late last year, but we expect this lift will prove temporary. Annual house price inflation is stable at 3%.”

“All regional housing markets outside Auckland and Canterbury remain tight. Hawke’s Bay, Manawatu-Whanganui, West Coast and Southland have seen particularly large increases over the past three months.”