Resilient amidst economic challenges
Despite strong economic headwinds, New Zealand's property prices have remained remarkably stable.
The latest real-time data from realestate.co.nz showed that the national average asking price has fluctuated between $860,000 and $890,000 since November 2022.
Sarah Wood (pictured above), CEO of realestate.co.nz, attributed this stability to the alignment of supply and demand.
“Both stock levels (supply) and the number of property seekers visiting realestate.co.nz (demand) have increased year-on-year,” Wood said.
“Eighteen months ago, we saw a shift from a fear of missing out (FOMO) to a fear of overpaying (FOOP). Since then, things have stabilised. Over the past year and a half, we’ve experienced a remarkably consistent market.”
Minimal fluctuations in most regions
Most regions saw minimal fluctuations in average asking prices last month.
Auckland’s average asking prices dipped by 1.6% year-on-year to $1,062,110 during May. Similarly, the national average asking price dipped by 1.6% year-on-year to $859,301.
“We can say that it has absolutely been a flat market for almost a year and a half,” Wood said. “Thanks to this stability, it’s an advantageous time to transact because homeowners have a better chance at predicting property values when selling and buying.”
Record highs and declines
The West Coast was the only region to hit an all-time asking price high last month, reaching $554,877. This is the first time in 17 years that the region’s asking price has surpassed $550,000, rising by 21.4% year-on-year.
Conversely, Wellington's average asking price fell by 14.1% year-on-year to $739,497.
Wood suggested public sector redundancies and a tightening job market could be prompting homeowners to price their properties more competitively.
“When the market is softer, price becomes the primary lever for sellers wanting to move their properties more quickly,” she said.
Increased stock levels nationally
Stock levels were up nationally and in all except two regions last month.
Significant year-on-year increases were seen in Marlborough (37.8%), Wellington (31.9%), Coromandel (30.4%), and Northland (30.2%). Nationally, stock levels rose by 22.2%, realestate.co.nz data showed.
“For buyers, increased stock levels mean more options and possibly better bargaining power,” Wood said. “For sellers, heightened competition requires careful pricing strategies, optimal property presentation, and a good marketing strategy to stand out from the crowd.”
To compare the latest figures with the previous month’s, click here.
See LinkedIn post here.
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