Stable prices, but sales lagging
The New Zealand housing market is showing early signs of renewed interest, with stable prices and an increase in buyer inquiries following recent cuts to the OCR and easing interest rates, according to realestate.co.nz.
Despite the uptick in interest, a significant boost in available stock – now at the highest October level in a decade – indicated that many buyers remain cautious.
Currently, more than 32,000 properties are on the market, a 26.3% rise year-on-year and a 7.7% increase from September.
High stock levels, buyer caution
October’s stock levels reached an unprecedented high for the month, typical of spring but unusual in their sheer volume.
“Buyers had more to choose from last month than they’ve had during an October for nearly a decade,” said Sarah Wood (pictured above), CEO of realestate.co.nz.
This heightened inventory reflects a cautious buyer sentiment, influenced by economic factors such as interest rates and job stability.
All regions experienced growth in housing stock, with Gisborne leading at an 81.2% increase year-on-year, followed by Wellington at 52.9%. Only a few areas, including Northland and Southland, saw single-digit growth.
While the abundance of properties points to a slow-moving market, there are early signs of increased interest, with more properties being listed for shorter periods.
“Properties listed for less than 30 days increased from 23.9% in September to 27.9% in October,” Wood said, suggesting a gradual uptick in buyer interest.
Stable prices over two years boost buyer confidence
An unprecedented 22 months of price stability has created a rare sense of predictability for both buyers and sellers.
The national average asking price has remained steady, hovering between $850,000 and $890,000, and in October stood at $856,981 – a 3% decrease year-on-year and a 1.5% drop from September. This consistency in prices offers buyers a more secure environment to enter the market.
Across regions, most saw minor price changes within a 10% range, reflecting stability. However, some regional fluctuations stood out: the West Coast experienced a 14.3% rise in its average asking price, while Wairarapa saw a 12.1% drop.
“Both are smaller markets and tend to be more prone to fluctuation,” Wood said, explaining that such variability is not uncommon in less densely populated areas.
Outlook: A steady environment for buyers and sellers
The combination of abundant housing stock and stable prices makes for a positive environment for those looking to buy or sell.
“The overall price stability is a positive sign for both buyers and sellers, offering a steady environment for those entering or moving within the market,” Wood said.
However, the realestate.co.nz leader also noted that individual circumstances and factors like interest rates will continue to impact decisions on both sides of the market.
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