The Real Estate Institute of New Zealand (REINZ) August 2024 figures show signs of increased confidence, optimism and activity compared to the previous year. While the overall sales volume slightly declined, several regions reported notable increases in activity, and year-on-year listing numbers continue to rise.
REINZ Chief Executive Jen Baird said August provided a sense of confidence and positivity to the property market. “ August data shows a level of stability in the market. Despite a marginal 0.6% (or $5,000) decrease in national median prices year-onyear, we’re seeing prices hold steady with a 1.3% increase month-on-month, ” says Baird.
Compared to August 2023, the total number of properties sold nationally decreased by 0.7% (just 40 properties), from 5,725 to 5,685, and decreased by 5.1% month-on-month, from 5,992 to 5,685. In the regions, eight regions saw an increase in sales in August 2024, and the most significant increases were in Northland (+22.7%), Hawke’s Bay (+21.6%) and Bay of Plenty (+16.2%). Compared to July 2024, five regions saw an increase in sales volume.
The national median price decreased by 0.6% year-on-year, from $770,000 to $765,000, and increased by 1.3% month on-month. For New Zealand, excluding Auckland, the median price increased 1.6% year-on-year from $670,000 to $681,000. Month-on-month, the median price increased by 1.8%.
Six of the sixteen regions had a median price increase year-on-year, with Otago leading the way with a 6.7% increase to $640,000, followed closely by the West Coast with a 6.6% increase to $357,000. Eight regions increased month-on-month, with the most notable changes observed in Marlborough (+7.8% to $625,000) and Gisborne (+6.0% to $620,000).
Staying in the regions, thirteen of the fifteen have seen a rise in new listings year-on-year, with the most notable increases recorded in Gisborne (+69.2%), Marlborough (+40.8%) and Manawatu-Whanganui (+39.8%). Two regions saw a decrease in new listings year-on-year: Nelson (-18.1%) and Northland (-11.1%). Nationally, there was an 8.1% increase in new listings compared to August 2023.
“This month, we saw further signs of a change in market sentiment, with local agents reporting increased confidence in vendors and purchasers, the return of investors, and increased activity, particularly at open homes over the last two weeks of August. They attribute this change to the decline in interest rates. However, it would be an overstatement to say that we are at a turning point in the market – we merely have our indicators on. While there is a rise in optimism and confidence, we are hopeful that better times are still ahead,” adds Baird.
The national inventory level increased by 30.0% (+6,830) in August, from 22,750 to 29,579 year-on-year and decreased by 3.2% (-977) from 30,556 month-on-month. For New Zealand ex Auckland, inventory levels increased 30.8% (+4,348) year-on-year from 14,099 to 18,447 and decreased 2.4% (-460) compared to June 2024.
Compared to August 2023, the median days to sell increased by eight days, from 42 to 50 days nationally. For New Zealand, excluding Auckland, median days to sell increased by six days, from 43 to 49 year-on-year. Five regions had fewer days to sell in August 2024 than in August 2023. Northland had the highest median days to sell at 71 days, an increase of 10 days year-on-year.
“We continue to see an increase in the average number of properties listed. Although the inventory is down slightly compared to last month, the volume of properties for sale continues to provide a lot of choice for buyers,” adds Baird.
There were 656 auctions nationally in August 2024 (11.5% of all sales), compared to 799 (10.9% of all sales) in August 2023. The Auckland region called 335 auctions in August 2024 (18.6% of all sales), compared to 492 auctions or 25.5% of all sales in August 2023.
“There is an expectation that rates will fall further towards the end of this year, providing the much-needed relief to property owners and those in the position to buy, which may increase sales volumes nationwide,” comments Baird.
The HPI for New Zealand stood at 3,563 in August 2024, a 0.8% decrease from August 2023. There was no change compared to July 2024. The average annual growth in the New Zealand HPI over the past five years has been 5.0% per annum, and it is currently 16.7% below the market peak reached in 2021. Southland is the top-ranked region in August, with a +3.0% increase year-on-year.
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Source reinz.co.nz