There is no denying the current economy is influencing market activity, CEO says
The national median price for residential properties tumbled 12.9% annually to $775,000 in March, while days to sell have lifted to 45 days, up nine days compared to March last year and down 15 days month-on-month, according to the Real Estate Institute of New Zealand’s March 2023 figures.
REINZ CEO Jen Baird (pictured above) said there was no denying the current economy was influencing market activity.
“While we have seen activity pick up in March, this year’s summer season has been muted,” Baird 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.”
At the end of March, the total number of properties for sale nationally was 29,284, up 14.1% year-on-year and up 0.7% month-on-month. Inventory in New Zealand excluding Auckland was also up, increasing 25.6% annually to 18,742 and 0.5% month-on-month.
“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.”
In March, the total number of properties sold across New Zealand was 5,877, up 42.9% from the prior month and down 15% year-on-year. New Zealand excluding Auckland sales counts fell by 10% year-on-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,” Baird said. “Those who need to sell are still selling.”
New listings across New Zealand numbered 9,242, down 17.7%, from 11,224 listings in March 2022 and up 13.5% from 8,143 listings in February 2023. New Zealand excluding Auckland listings slipped 15.2% year-on-year to 6,099. Auckland’s listings saw a 22.1% decline to 3,143 year-on-year with the only regions increasing being Taranaki (+9.7%) and Marlborough (+18.6%).
“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 decline of 13.1% for New Zealand and a 11.5% drop for New Zealand excluding Auckland.
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