There is no denying the current economy is influencing market activity, CEO says
The economic climate has continued to impact the New Zealand housing market, with median prices and sales counts easing and properties taking longer to sell, according to the Real Estate Institute of New Zealand (REINZ).
“While we have seen activity pick up in March, this year’s summer season has been muted,” REINZ CEO Jen Baird (pictured above) said. “Prices have eased as we can see, and properties are taking longer to sell. Buyers are taking their time, they are negotiating, and some are waiting to see if prices ease further.”
March figures showed the median price nationally fell 12.9% annually to $775,000, while days to sell have increased to 45 days — up nine days compared to the same period last year and down 15 days compared to February 2023.
At the end of March, the total number of properties for sale across New Zealand was up +14.1% (or 3,625 properties) year-on-year to 29,284 and up 0.7% month-on-month. New Zealand excluding Auckland also saw an increase in the total number of properties, up +25.6% (3,819 properties) from 14,923 to 18,742 annually. Month-on-month, the increase in inventory was 0.5%.
“Inventory levels are returning to the long-term average, which presents an opportunity for buyers looking to take advantage of the lower prices and less competition,” Baird said. “REINZ members tell us first-home buyers are actively returning in the regions with the advantage of choice as investors remain absent.”
When it comes to the total number of properties sold across New Zealand, the figure increased +42.9% from 4,113 in February to 5,877 in March and dropped 15% year-on-year. New Zealand excluding Auckland sales counts declined by 10% from the prior year but rose 34.3% month-on-month.
“There are clear signs that we are in the lower phase of the cycle, but with nearly 6,000 properties sold, vendors who are motivated to sell are meeting the market with more realistic expectations on time frame and price. Those who need to sell are still selling,” Baird said.
Compared to March 2022, new listings nationally fell 17.7% to 9,242. Month-on-month, listings jumped 13.5% from 8,143 to 9,242 last month. New Zealand excluding Auckland listings tumbled 15.2% year-on-year from 7,191 to 6,099. Auckland’s listings plunged 22.1% from 4,033 to 3,143 year-on-year, with Taranaki (+9.7%) and Marlborough (+18.6%) the only regions seeing rises.
“The weather events of the beginning of the year are still being felt in those regions heavily impacted,” Baird said. “The market is likely to remain in this phase as New Zealanders wait for peak of inflation, a settling in interest rates and some clarity around the possible outcome of the election. That said, with the number of listings continuing to ease, we may start to see the supply/demand balance change in some areas.”
The REINZ House Price Index (HPI) for New Zealand, which measures the changing value of residential property nationwide, showed an annual drop of 13.1% for New Zealand and a 11.5% decline for New Zealand excluding Auckland.
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