Confidence is emerging and there are signs of an upward trend, CEO says
The spring property market is showing more signs of activity, with prices stabilising, sales counts increasing, and properties spending less time on the market, the latest REINZ figures showed.
“September shows the ‘green shoots’ from previous months are continuing to grow. Confidence is emerging in the property market, and we are seeing signs of an upward trend,” REINZ CEO Jen Baird (pictured above) said.
Sales counts across New Zealand increased 5.1% in September to 5,439 from 5,174 this time last year, and were up 5.6% for New Zealand excluding Auckland, rising from 3,474 to 3,669 year-on-year.
Marlborough enjoyed the biggest rise in sales count, up by 66.7% year-on-year. Increases were also recorded in Northland (1.8%), Auckland (4.1%), Bay of Plenty (2.8%), Hawke’s Bay (3.0%), Manawatu/Whanganui (22.6%) Taranaki (16.2%), Tasman (16.4%), Canterbury (13.9%), and Southland (10.7%).
REINZ figures showed that the median sale price rose 2.3% across New Zealand in September to $785,000 from $767,500 the prior month, but was down 3.1% year-on-year.
“Median sale prices have increased in all but three regions month-on-month, with the West Coast (+16.4%), Marlborough (+13.8%) and Otago (+9.3%) leading the way,” Baird said.
At the end of September, the total number of properties for sale across New Zealand was down 9% to 23,564 from 25,903 year over year, but rose 3.6% month over month heading into the busier months of the annual property market cycle.
New Zealand excluding Auckland inventory declined by 6.7% to 14,690 from 15,744 a year ago but lifted 4.2% from the previous month.
Properties were now selling in fewer days, from 47 to 40 days year over year and 43 days to 40 month on month. Available inventory was also moving quicker for the third month – from 49 days in July, to 43 in August, to 40 last month.
A decrease in the median days to sell compared to September last year was seen in 10 regions, with Wellington experiencing the biggest fall, down 22 days from 56 to 34.
“The numbers we are seeing this month show the expected upturn in the market post winter but after many months of a much weaker market, there seem to be stronger signals in growing activity from both buyers and sellers,” Baird said.
Nationally, new listings fell 0.9% to 7,812 year over year and rose 4.9% compared to August. For New Zealand excluding Auckland, listings dropped 4.7% year over year to 4,954 and increased 8.9% month on month.
“This month, only four regions had a negative month-on-month shift in listings,” Baird said. “Listings and the median days to sell are key areas to watch as they can indicate a shift in the property market cycle. Local agents continue to report an increase in activity, enquiry, and bigger numbers at open homes.”
“We can also see auctions coming back with some positive numbers this month. Nationally auctions comprised 15.3% of the total sales for September 2023, compared to 14.0% in August 2023 and 11.4% compared to September 2022.”
The REINZ chief said the market is turning after the traditionally quiet winter months.
“Certainty is returning for some who are seeing the low point of the market cycle behind them and are acting,” Baird said.
“Post the election, there will be an adjustment and with another OCR announcement coming at the end of November, there will be some who do still hold off, but we are seeing more people, both buyers and sellers, decide now is the time for them to be in the market. Agents are also reporting that the pipeline for new listings is looking healthy.”
The HPI for New Zealand was 3,614 in September, up 0.7% from the previous month but down 3.3% compared to the same period last year. The average annual growth in the New Zealand HPI over the past five years has been 5.7% per annum and is now 15.5% below the peak, REINZ reported.
Click here for House Price Index (HPI) Report.
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