Investor interest also remains steady
The final NZHL Property Report for 2024, authored by independent economist Tony Alexander (pictured above), highlighted key trends shaping New Zealand’s housing market.
The survey, based on insights from 268 licensed real estate agents nationwide, captures a market experiencing steady conditions and gradual change.
Auction and open home attendance stabilise
Auction attendance remained consistent, with 27% of real estate agents observing more people attending auctions for three months straight.
Open home attendance also steadied, with a net 28% of real estate agents reporting increased activity, though this is down from October’s 52%.
Despite the seasonal drop in attendance typically seen at year-end, Alexander noted, “This year’s decline is relatively mild compared to past trends, signaling a steady market.”
Steady prices with gradual gains
A net 5% of real estate agents report prices rising slightly in their areas, down from 8% the previous month. While the pace of price increases is slow, the sentiment aligns with a market finding its footing.
“Buyers are eyeing the market cautiously, but there’s no fear of missing out driving hurried decisions,” Alexander said.
First-home buyers continue to lead the market, with 57% of real estate agents seeing increased activity from this group. They account for over 25% of sales since early 2023, challenging the notion that young people are locked out of homeownership.
Investor activity follows the market
Investor interest remains steady, with 36% of real estate agents noting increased activity. Investors are motivated by falling interest rates, price stabilisation, and retirement planning. However, 22% of agents report more investors selling, reflecting a mix of profit-taking and adjustments to changing market conditions, the NZHL report found.
Buyer concerns shift
Top concerns for buyers include access to financing and income stability, though worries about interest rates have nearly vanished. Only 1% of real estate agents cited interest rates as a major issue, a significant shift from earlier in the year.
The report signals cautious optimism for 2025, with steady activity levels, manageable buyer concerns, and balanced conditions that favor both buyers and sellers.
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