The data shows a national and regional increase in listings and sales counts while median sales prices stabilise.
REINZ Chief Executive Jen Baird says the market shows a general theme of more this month with higher sales counts, increased stock levels, more listings, and properties selling more quickly than a year ago. These annual increases contrast with current challenges in securing finance, changes in the job market, and the wait on OCR and interest rate changes.
The total number of properties sold in New Zealand increased by 8.0% compared to April 2024, from 5,834 to 6,303, and by 6.8% year-on-year, from 5,903 to 6,303. Gisborne had the highest increase, up by +112% year-on-year, and 11 of the 16 regions had increases in sales count month-on-month and year-on-year. “ The seasonally adjusted figure is an important indicator of the underlying market trends. By seasonally adjusting the data we can see whether the change in sales is part of a normal change we would expect, or something else is happening. says Baird. ”
“Nationally, seasonally adjusted figures show a 5.2% increase, indicating that year-on-year sales counts performed slightly above expectations – an encouraging sign despite the current economic challenges."
Listings increased nationally by 25.4% year-on-year from 7,359 to 9,225, continuing a trend since the start of 2024. Twelve of the sixteen regions have increased in new listings year-onyear with notable increases in Wellington (+103.3%), Hawke’s Bay (+34.3%), Marlborough (+33.3%), Auckland (+30.0%), Otago (+31.4%) and Waikato (+20.7%).
Stock levels for May 2024 increased 22% (+5,913) from 26,685 to 32,598 year-on-year and decreased 3.6% from 33,815 month-on-month. For New Zealand ex Auckland, stock levels increased 18.9% (+3,215) up from 17,015 to 20,230.
“With a continued flow of new options coming to the market adding to a large level of stock this does provide a lot of choice for buyers and a sense that they can take their time to make decisions.”
The national median sale price decreased slightly by 1.3% year-on-year, from $780,000 to $770,000, and decreased by 2.5% compared with April 2024, from $790,000 to $770,000.
“The seasonally adjusted figures show a 1.2% decrease, showing prices performed slightly below the change usual for May. The volume of listings and choice can affect prices as well as vendor price points adjusting to buyer demands.”
Ten of 16 regions had year-on-year price increases with West Coast leading the way with a 14.1% increase, from $355,000 to $405,000. Compared to April 2024, only three additional regions had median sale price increases (Hawke’s Bay +2.3% to $675,000; Manawatu-Wanganui +0.9% to $560,000; Canterbury +1.5% to $680,000).
Nationally there were 833 auctions in May 2024, 13.2% of all sales compared to 574 auctions or 9.7% of all sales in May 2023. Auckland increased 2.5% from 22.4% (409) to 24.9% (460) in the number of sales by auction compared to last month and increased 7.2% (17.7%) compared to May 2023.
Nationally, median Days to Sell decreased by 5 days, from 49 to 44 days, compared to a year ago. For New Zealand, excluding Auckland, median Days to Sell decreased by 8 days year-on-year, from 51 to 43 days. In 10 of the 16 regions, median Days to Sell were lower compared with May 2023. Northland had the highest days to sell at 71 days compared to 56 last month and 60 compared to May 2023.
The HPI for New Zealand stood at 3,595 in May 2024, down 1.0% from the previous month and up by 2.3% for the same period last year. The average annual growth in the New Zealand HPI over the past five years has been 5.5% per annum, and it is currently 15.9% below the peak of the market reached in 2021.
“There’s solid buyer interest and activity, and more listings are coming to a well-stocked market. While some buyers are taking their time, others are snapping up properties at attractive prices before the expected slowing during the winter months and the potential reemergence of investors mid-year. It might be a few months yet before the residual impact of readjustments post the government’s 100-day plan and budget are felt. Indeed, there are cool economic breezes being felt but there are signs of more positive activity ahead,” adds Baird.
Source: The Real Estate Institute of New Zealand (REINZ). For full report visit the REINZ Website