According to the latest monthly property report from the Real Estate Institute (REINZ), in January 2023 house prices have declined, but at a slower rate than seen in the past few months. Is this a sign that the decline is slowing? For more on this, check out our property market report.
January was another slow month
During the month of January, the New Zealand housing market saw a record low number of sales (excluding April 2020), with less than 3,000 properties sold across the country. January is usually a slow month, but this was probably exacerbated by poor weather in some regions, including Auckland.
Properties are also spending longer on the market – namely 16 days longer than January 2022. “High interest rates, the ability to secure finance, commentary around a looming recession and this being election year can be added to factors for slow decision-making from buyers,” said REINZ chief executive, Jen Baird.
But market has “glimpses of a new life”
Despite median house prices continuing to drop across the board (with the exception of Gisborne, Taranaki and the West Coast), January performed better than expected.
“Reports of more activity in the market are growing,” said Baird. “Agents in many areas are reporting more attendance at open homes, more interest online and even more multi-offer situations.” In the meantime, a larger supply of listed homes (up 39.4% year-on-year) coupled with dropping house prices means buyers have the upper hand in many regions.
“Sellers are tending to be more realistic and will usually meet the market through negotiation – however, many remain cautious with properties taking longer to sell, and investors sparse,” said Baird.
Some key takeaways from the data
- In January, the national median price for residential property dropped by 13.3% year-on-year to $762,500. Excluding Auckland, the median price was down 9.3% to $679,000.
- At a regional level, the largest annual drop in median sale price was in Wellington (down 16.4%), Auckland (down 21.7%), Northland (down 16.6%), and Bay of Plenty (down 18.8%).
- All regions had an increase in median days to sell since December 2022.
For more information on regional market performance, check out the latest Monthly Property Report here.
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Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.