Market sees continued decline
The latest NZHL Property Report, compiled by economist Tony Alexander (pictured above), revealed a persistent downturn in the New Zealand property market.
The key results from this month’s survey show that most readings are similar to last month, with more agents observing fewer investors and first home buyers. Prices are widely perceived to be declining across the country.
The latest NZHL Property Report gathers insights from licensed real estate agents across New Zealand on the current residential property market conditions.
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Auction and open home attendance drops
A net 37% of the 331 agents responding this month reported seeing fewer people attending auctions.
“This result is consistent with others since March but not as poor as early in 2022 following the credit crunch of late-2021,” Alexander said.
Similarly, 35% of agents reported fewer people attending open homes.
“People feel in no hurry to make a purchase and for the moment are holding back from kicking the tyres of potential purchases,” Alexander said.
Price declines and lack of FOMO
A high net 50% of agents felt that prices are falling in their area.
“This result is close to those for all months since April and suggests that when the June data on real estate activity are released by REINZ we will see another nationwide average house price decline,” Alexander said.
Additionally, only 1% of agents see fear of missing out (FOMO) among buyers, indicating no urgency to buy.
Decline in first-home buyers and investors
A net 3% of agents reported seeing fewer first home buyers, the weakest result since January 2023.
Similarly, 24% of agents reported seeing fewer investor buyers, consistent with results from May and April.
Offshore interest in the NZ residential property market remains very weak.
Appraisal requests and buyer concerns
Only a net 3% of agents reported seeing more requests for appraisals, a slight increase from last month.
Buyers continue to face concerns, with 44% worried about prices declining after making a purchase and 42% concerned about interest rates.
Concerns about employment have soared, with 56% of agents reporting job worries among buyers, up from 14% in January.
Investors bringing more properties to market
A net 14% of agents reported that investors are bringing more properties to the market.
“This measure jumped up late last year but has been trending downward since the 26% peak in February,” Alexander said.
Investor demand is primarily motivated by hopes of finding bargains, though 42% of agents say investors are not interested in making purchases at all.
The continued weakness in the New Zealand property market highlights the challenges faced by both buyers and sellers in the current economic climate.
Read the NZHL Property report in full here.
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