Median property price up slightly nationally, sales activity down, new data shows
Despite the property market seeing more first-home buyers and busier open homes, the latest nationwide figures confirmed that “we’re not seeing the normal sales lift associated with spring,” said Tim Kearins, owner of Century 21 New Zealand.
Read more: House prices in most regions still up on last year – REINZ
Kearins’ comments follow the release of REINZ’s Monthly Property Report for September, which reported a 1.4% increase month-on-month from August and a 2% lift annually in median house prices across the nation to $811,000, from $795,000 in September 2021.
According to the REINZ report, median property price saw a slight increase nationally while sales activity was down, median days to sell properties high, and inventory levels were elevated.
“Buyers are cautious this spring, which is expected with increasing interest rates, cost-of-living pressures, and ongoing struggles for many to secure a mortgage,” Kearins said. “As REINZ has stated, this is not going to change much in the foreseeable future. Across New Zealand, the number of residential property sales in September decreased annually by 10.9%, from 5,548 in September 2021 to 4,943. At the same time, the total number of properties available for sale nationally increased by 93.2%, from 13,407 in September 2021 to 25,903. Month-to-month listings were up 5.2% compared to August.”
What is somewhat encouraging, Kearins noted, was that listings were up as we move into spring.
“Kiwis still want to move house, and with less on the market to choose from, many good properties will keep commanding good money,” he said. “In my observation, the top end is probably holding its own better.”
A recent REINZ & Tony Alexander Real Estate Survey for October found that buyers were showing signs of returning despite concerns about high interest rates and access to finance. The monthly survey of real estate agents also reported the return of first-home buyers and improving open home attendances, with FOMO (fear of missing out) now low.
Kearins highlighted the importance of securing a good real estate agent and agency, with the softer market leading to many of New Zealand’s real estate agents exiting the industry.
Read next: New Century 21 franchise officially opens its doors
“Century 21 is holding its agents which is a great indicator of their performance and customers’ views of them,” Kearins said. “In fact, this month we’re launching a new office in the central Auckland suburbs. The new franchise owner is keen to leverage off Century 21’s international reach and reputation for superior service.”
