On May 5, positive signals emerged in New Zealand's trade sector, with the impact of US - imposed tariffs on agricultural exports proving to be limited. Paul Clark, an economist at Westpac, forecasts that milk prices will remain stable at NZ$10.30 per kilogram this season, potentially edging down to NZ$10 next season, though fluctuations in supply, demand, and exchange rates could still drive prices upward.
In the real estate market, data from Barfoot & Thompson shows that 842 residential properties were sold in April, a four - year high for the same period, representing a 19.6% year - on - year increase. Nevertheless, house prices continue to decline. The median price dropped 3.7% month - on - month to NZ$934,000 and 7.3% year - on - year, while the average price of NZ$1.1107 million fell 8.4% year - on - year, both hitting the lowest levels since 2020. Housing inventory reached 6,113 units, a 17 - year high.
Peter Thompson, the managing director, pointed out that trade discussions at the beginning of the month temporarily dampened sales, which rebounded towards the end. However, the weak price trend persists, leaving the market's recovery prospects uncertain. While the trade sector brings some optimism, the real estate market continues to face challenges, reflecting the complex economic situation in New Zealand.
