REINZ reports uptick in property listings

Sales too are stable

By Mina Martin

15 Feb 2024

January saw a notable increase in property listings alongside a stable sales environment – a trend reflecting growing confidence among sellers and offers buyers a wider selection of properties, according to REINZ.

Sales and listings rise, price variations

January’s property sales amounted to 2,995, marking a 4.9% increase from the same period the previous year. The real highlight, however, is the 10.4% surge in national listings year-on-year, a clear indication of the market’s recovery momentum, REINZ CEO Jen Baird (pictured above) said.

Wellington led the charge with a whopping 148% increase in listings compared with the previous month, followed by significant jumps in Gisborne, Canterbury, and Auckland.

Excluding Auckland, sales rose by 16% across New Zealand, with 10 regions posting higher sales than in January 2023.

Despite the positive sales figures, the national median sale price dipped slightly to $760,000, down 2.5% from December, with regional disparities evident. Northland saw a substantial 21% month-on-month increase in median sale prices, while Auckland’s median price dropped below the $1 million mark once again, to $975,000, which is still 3.4% higher compared to more than a year ago.

“Despite the wave of listings favouring buyers, the challenges of last year, including the cost of living, inflation, interest rate changes, and government reforms, mean some buyers remain cautious,” Baird said in a media release.

“However, most regions are reporting more buyer activity across the board, with some seeing a particular surge in first-home buyer interest. Vendors are also being confident but realistic with prices as activity increases over the summer months. This is likely to resolve in inventory moving over the coming more active months in the year.

Legislative changes and market outlook

Anticipation surrounds the Residential Property Managers Bill and potential government reforms, including adjustments to the bright-line test and interest deductibility on investment properties. These changes, Baird said, could significantly impact investor behavior and market dynamics.

“2024 is shaping up to deliver a series of changes and shifts in dynamics for the market,” she said. “The property sector is expecting the new government to make good on its promises to reduce the bright line back to two years and reintroduce interest deductibility on investment properties, changing the dynamics of the property market again.”

HPI and market growth

The House Price Index (HPI) for New Zealand showed modest growth, indicating steady market conditions. The average annual growth rate over the past five years has been 6%, though it remains below the 2021 peak.