Spring has officially arrived and has brought a wave of positivity and optimism to New Zealand’s property market, the latest figures from the Real Estate Institute of New Zealand (REINZ) reveal.
As we recover from a subdued market, October proved to be a more positive month, with increases in sales and ever so slight increases in median prices.
“ There seems to be light at the end of the tunnel. Although challenges like the cost of living remain, positive signs are emerging. Falling interest rates, increased inventory in the market, and greater activity during open home events are all reflected in the data for October, ” explains Chief Executive Jen Baird.
On the sales front, total properties sold nationally increased by 20.0% compared to October 2023. Sales for New Zealand, excluding Auckland, rose 22.7% year-on-year, with notable increases in Nelson (+112.8%) and Marlborough (+29.5%).
“Salespeople are seeing more confidence among vendors and buyers now we’re into spring, and this shows signs of a busier market leading up to Christmas,” adds Baird.
The national median price increased by 0.7% year-on-year, from $789,500 to $795,000; month-on-month, it increased by 1.9%, from $780,000. Excluding Auckland, the median price rose 2.9% year-on-year from $690,000 to $710,000 and increased 2.2% from $695,000 compared to October 2024.
Regionally, ten out of sixteen areas reported an increase in median prices over the past year, with Marlborough leading at an impressive 18.3% increase to $769,000. The West Coast followed closely with a 14.7% rise year-on-year to $390,000. Month-on-month changes also revealed significant increases in Marlborough (10.6% from $695,000) and Manawatu-Whanganui (10.0% to $550,000).
“The New Zealand property market is experiencing a dynamic shift. While median prices are gradually catching up, local salespeople note that some buyers remain cautious about overpaying for properties due to relatively high interest rates. This environment encourages buyers to be more strategic in their approach, making them feel confident in negotiating with vendors to reach an agreeable price,” adds Baird.
New listings also surged, continuing the trend since the beginning of 2024, with every month this year showing a higher number of listings than the same month in 2023. Thirteen out of fifteen regions reported increases compared to last year.
The two regions that didn’t were Southland and Northland, which both had a 0.0% change year-on-year. The regions that experienced the highest rise of listings were Gisborne (+103.6%), Canterbury (+40.6%), and West Coast (+40.0%).
Overall, listings nationally increased by 21.4% to 11,572, and New Zealand (excluding Auckland) increased by 22.2% year-on-year to 7,469.
Inventory levels are also climbing; national inventory grew by 26.3% year-on-year and 7.7% month-on-month to reach 32,339 properties available for sale.
Baird notes that the increase in available properties provides buyers with the opportunity to explore a diverse range of options that better align with their individual needs and preferences, allowing them to take their time shopping around.
In October, there were 1,191 auctions nationally (17.8% of all sales), an increase from 899 (16.1%). The national median days to sell rose by four to 42 days compared to last year; excluding Auckland, it increased from 39 days in October 2023 to 43 days this month.
The House Price Index (HPI) for New Zealand stood at 3,616—a decrease of 1.1% year-on-year but an increase of 0.5% month-on-month. Over the past five years, the average annual growth rate for New Zealand’s HPI has been approximately 4.8%, although it currently sits at 15.4% below its peak in 2021.
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Source: REINZ website