Signs of stability emerging
According to the Real Estate Institute of New Zealand (REINZ) September 2024 data, both buyers and sellers are showing increased optimism as the property market stabilises.
REINZ Chief Executive Jen Baird (pictured above) noted that despite ongoing challenges, many expect the recent drop in interest rates to spark more activity heading into 2025.
“After the Reserve Bank reduced the OCR rate by 50 basis points to 4.75%, the market is expected to see more activity from those who are ready to buy,” Baird said.
Mixed trends in median prices
National median house prices decreased 2.3% year-on-year to $781,000 but showed a 2.1% increase compared to August. Excluding Auckland, prices fell 0.7% from last year, reaching $695,000, but rose 2.2% from August.
Baird described these fluctuations as expected for the season, signaling stability across the market.
Regional performance: Gisborne and Southland lead gains
Eight of the 16 regions saw annual price growth, with Gisborne leading at 10.1%, followed by the West Coast at 9.9%.
Month-on-month, Southland recorded a 14.1% price surge, while Marlborough followed closely with a 9.7% rise.
Sales volume drops nationally, but some regions see growth
Property sales fell 1.1% nationally from September 2023 and dropped 3.3% compared to August. However, sales outside Auckland rose 4.5% year-on-year, with significant increases in Hawke’s Bay (26.3%) and Gisborne (22.6%).
More properties enter the market
New property listings grew in 12 of 15 regions year-on-year, led by Gisborne (+50.0%), Wellington (+36.1%), and Otago (+34.1%). Inventory levels rose 27.4% nationwide compared to last year, giving buyers more options and time to find the right property, REINZ reported.
Buyer interest surges at open homes
Baird noted that increased attendance at open homes suggests growing buyer engagement, beyond the usual seasonal trends.
“With some regions now seeing an uplift in sales, buyer engagement is improving, with listings receiving more enquiries,” she said.
These signs suggest the market could gain momentum if interest rates continue to decline.
Auctions decline as sales take longer
Auction activity slowed, with 737 properties sold under the hammer in September (12.7% of sales), down from 911 (15.5%) a year ago.
In Auckland, auctions accounted for 21.2% of sales, a drop from 27.4% last year. The national median days to sell increased by nine days to 49, but the West Coast bucked the trend, with its median days to sell dropping by 28 days to 31.
Market indicators suggest stabilisation
The housing price index (HPI) for New Zealand stood at 3,600, a slight 0.4% decrease year-on-year but a 1% increase month-on-month. Southland led regional growth with a 3.7% annual rise.
Despite the market being 15.8% below its 2021 peak, average HPI growth over the last five years remains 4.9% per year.
Positive outlook for the coming months
With inventory rising, buyer engagement increasing, and interest rates softening, Baird expects market conditions to improve further.
“These trends could lead to a more robust market in the coming months, particularly if expected improvements in market activity and reductions in interest rates eventuate,” the REINZ leader said.
Access the full Monthly Property Report, the House Price Index (HPI) Report, and the REINZ media release. To compare with the previous results, click here.
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