The New Zealand housing market is showing signs of optimism, according to the latest property market report from REINZ. As the chill of winter subsides, real estate agents saw a resurgence in activity. Here’s what we know.
Steady activity despite low listing numbers
Historically, the transition from winter to spring has signalled a revival in many sectors, and the property market is no exception.
While the August figures weren’t record-breaking, they showed improvement from the previous month’s slump. Listings are still low in numbers but gaining momentum (being up 20.9% month on month), and REINZ reports a visible rise in sales count and demand for entry-level property.
Commenting on this trend, REINZ chief ecutive, Jen Baird, pointed out: “We’ve seen steady activity this month with increased sales counts both compared to August 2022 and July 2023. The lift in market activity has also seen the median days to sell decrease this month.”
Median sale prices still down (with few exceptions)
August 2023 experienced a slight pullback in the national median sale price compared to August 2022, down 4.1% year-on-year from $800,000 to $767,000. There were only five regional exceptions: Nelson (+0.7% YOY), Canterbury (+0.8%), Southland (+2.0%), Northland (+3.6%), and Gisborne (+14.8%).
Interestingly Auckland, New Zealand’s largest property market, saw a 8.2% annual price drop, but a 2% month-on-month increase. Could this be the sign that the market has turned? Too early to tell.
“Higher interest rates and the ongoing costs of living pressures continue to impact the market ahead of the looming election,” said Baird. “There is a sense across the country that the market has seen the bottom both in terms of prices and sales volumes, but we are all waiting to see how long it will take to see growth.”
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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.