House prices in New Zealand fall due to high interest rates

In November, house prices in New Zealand fell compared to the previous month. According to the Real Estate Institute of New Zealand (REINZ), the decline in property prices in the country can be explained by three main factors affecting the market hesitancy. These are: rising interest rates, limited access to finance, and concerns around the economy.

According to REINZ, the seasonally adjusted median house value fell 2.8% in November compared to the last month. In comparison with the same month last year, the price of housing has decreased by 12.3%.

Jen Baird, chief executive at REINZ, said that buyers are weighing up the impact of high rates on mortgage payments and ongoing downward pressure on house prices. Whereas, the sellers are wondering if it’s the right time to sell their property.