The Real Estate Institute of New Zealand’s (REINZ) November 2023 figures show more sales activity, more listings coming to market, lower days to sell and a sense of more confidence overall (year-on-year).
REINZ Chief Executive Jen Baird says October is showing a slow but steady improvement in property market activity now that the country is past the election, and we head into more active months in the property cycle.
We’ve seen steady activity this month with a small 2.5% decrease (from 5,762 to 5,619) in the number of properties sold month-on-month, and an 8.0% increase (from 5,205 to 5,619) compared to October 2022. For New Zealand excluding Auckland, the total number of properties sold has followed a similar pattern, decreasing 2.2% month on month and increasing 2.6% year on year from 3,573 to 3,665.
Across the regions, twelve of the sixteen regions had an increase in the number of properties sold year-on-year, with the top of NZ (Northland: +36.1%), and the bottom of NZ (Southland: +29.6%) having the biggest increases.
Median sale prices are a mixed bag across the country, with the national median sale price unchanged compared to last month, staying at $795,000 – around where it has been for much of the year. Year-on-year, there is a slight national decrease of 2.8%, while New Zealand excluding Auckland is down by 4.7% to $691,000 from $725,000.
Median sales prices year-on-year increased for several regions, with Tasman (+2.0%), West Coast (+2.6%), Canterbury (+3.2%), and Southland (+2.4%) all increasing. There has been a decrease in median sales prices across all other regions year-on-year this month.
“Local agents are reporting a lot more activity across buyer groups. They’re noticing more investors and first home buyers looking to secure properties sharing the market with vendors who are showing a willingness to be realistic with their price expectations. We can see signs of that in the median prices this month,” says Baird.
The market is moving a little quicker. Days to sell has decreased year-on-year by three days for New Zealand to 37, and by two days for New Zealand excluding Auckland, to 39. Regionally, just over half (9 regions) have had a decrease in the days to sell month-on-month and year-on-year. Year-on-year, Days to Sell in New Zealand decreased by 7 days compared to October 2022.
“Through the REINZ Monthly Ambassador Survey, agents are reporting increased engagement and more certainty from buyers in the bigger centres, especially post-election, supported by the warmer weather. Properties are taking slightly fewer days to sell on average, which is an anticipated sign of more positive things ahead.
At the end of October, the total number of properties available for sale across New Zealand was 25,602, down 3.7% (975 properties) from 26,577 year-on-year, and up 8.6% month-on-month. For New Zealand excluding Auckland, inventory also decreased by 117 properties (0.7%) year-on-year from 16,237 to 16,120 and increased 9.7% month-on-month.
Nationally, new listings increased by 2.6% from 9,289 listings to 9,529 year-on-year and increased 21.9% compared to September 2023. New Zealand excluding Auckland also saw an increase month-on-month of 23.4% and year-on-year 1.2%.
Every region showed an increase in listings month-on-month, with just over 58% for Northland, 40.2% for Wellington, 36.8% for Marlborough, and five other regions increasing by over 20%.
“The increasing number of listings coming to market is showing a slow, but marked, improvement to the past year, and a renewed confidence from vendors looking to sell with more certainty now the election is behind us. While details of the new Government are still being discussed amongst coalition partners, many vendors and buyers are showing confidence that it’s a better time to sell now and a good time to buy. The signs are there for an improving market.”
“Although REINZ data is showing a steadying ship this month, we should not discount the impact for those coming off high interest rates, the pressure of the cost of living, and the impact on the market post-election. Keep a close eye on the next three months of REINZ data as the new coalition Government’s policies land, migration flows remain high leading to pressure on both the residential sales and rentals market, the weather turns warmer (hopefully!), and we watch global factors play out,” comments Baird.
The HPI for New Zealand stood at 3,652 in October 2023, showing a 1.1% increase compared to the previous month. However, when compared to the same period last year, the HPI reflects a 2.5% decline. The average annual growth in the New Zealand HPI over the past five years has been 5.8% per annum. It remains 14.6% below the peak of the market in 2021.
