NZ: House prices up 0.9% in October – ANZ

ANZ analysts note that nationwide, New Zealand’s house prices were up 0.9% m/m in October, to be up a strong 2.5% q/q while annual house price inflation rose to 3.3% from 2.5%.

Key Quotes

“Auckland price inflation continued to underperform the broader market in October, but showed more signs of sales activity. Auckland house prices were flat in the month, to be down 1.0% over the past year.”

“In the rest of New Zealand (ie ex-Auckland), house price inflation rose a solid 1.8% m/m. This saw annual house price inflation pick up to 7.2% y/y from 6.5% in September.”

“Prices were robust again in October, and monthly house sales also lifted. We estimate seasonally adjusted house sales rose 8% m/m in October, although annual sales growth dipped to -0.1% y/y (3mma) from 3.7% as last year’s pre-foreign buyer ban flurry dropped out of the annual calculation. Sales were solid again in Auckland, up 6% m/m, and sales rose 3% m/m elsewhere.”