The Real Estate Institute of New Zealand’s (REINZ) August 2023 figures show continued optimism and further activity in the property market. While listing numbers remain light, they are up on July and sales counts have increased, showing some late winter confidence.
REINZ Chief Executive Jen Baird says August often shows a resurgence of activity as Spring approaches.
“We saw steady activity this month with increased sales counts both compared to August 2022 and last month. This lift in market activity has also seen the median days to sell decrease this month,” Baird says.
Compared to August 2022, August 2023 saw an increase in the total number of properties sold across New Zealand, up 9.2% to 5,509, from 5,047, and up 9.2% month-on-month. For New Zealand excluding Auckland, sales counts also increased by 5.2% year-on-year from 3,508 to 3,690.
Across the regions, Northland (4.5%), Auckland (18.2%), Waikato (16.2%), Manawatu-Wanganui (8.6%), Tasman (8.0%), Nelson (12.3%), Marlborough (38.1%), Canterbury (24.9%) and Southland (4.2%) all saw increases in sales counts year-on-year.
“Local agents are reporting that, as new listing numbers continue to decrease, the demand for entry-level property is holding and fairly strong, and properties are starting to move quicker,” says Baird.
The national median days to sell reduced by 6 days year-on-year and 5 days month-on-month, a change from the trend for many months of increased days to sell. Eleven regions saw a decrease in the median days to sell compared to July 2023, with the biggest decrease occurring in Nelson, which dropped 18 days from 60 days to 42 days.
At the end of August, the total number of properties for sale across New Zealand was 22,750, down 10.6% (2,691 properties) from 25,441 year-on-year, and down 1.5% month-on-month. New Zealand excluding Auckland inventory was down year-on-year from 15,196 to 14,099, a decrease of 1,097 properties or 7.5% annually.
Nationally, new listings decreased by 0.6% from 7,492 listings to 7,444 year-on-year and increased 20.9% compared to July 2023. For New Zealand excluding Auckland, listings decreased 4.2% year-on-year from 4,749 to 4,550 and increased 18.3% month-on-month.
“The number of properties available for sale over the last three months continues to fall. Listings are still at lower levels compared to August 2022, but only slightly. Month-on-month we have seen a 20.9% increase of stock coming to market, suggesting seller confidence is returning and we can expect a more normal spring ahead for the property market,” comments Baird.
Nationally, the August 2023 median sale price decreased 4.1% year-on-year to $767,000 from $800,000.
Regionally, median sale prices remained down year-on-year except for five regions: Nelson +0.7%; Canterbury +0.8%; Southland +2.0%; Northland +3.6% and Gisborne up 14.8% year-on-year and up 13.0% month-on-month. Auckland, the country's largest property market, saw its median sale price move back up over the $1 million mark to $1,010,000 increasing 2.0% month-on-month, but decreasing 8.2% year-on-year.
Wellington saw month-on-month increases with the median sale price up 2.3% from $733,000 to $750,000, and a 16.9% increase in the number of properties sold from 438 to 512 month-on-month. Days to sell month-on-month decreased from 52 to 38, a 14-day decrease.
“Higher interest rates and ongoing cost of living pressures continue to impact the market ahead of the looming election. 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 reemerge,” comments Baird.
The HPI for New Zealand stood at 3,588 in August 2023, showing a 0.9% increase compared to the previous month. However, when compared to the same period last year, the HPI reflects a 4.7% decline. The average annual growth in the New Zealand HPI over the past five years has been 5.7% per annum. It remains 16.1% below the peak.
Source: REINZ Website
