Market activity increases
REINZ has released its May data, showcasing a rise in both national and regional listings and sales counts, while median sales prices have stabilised.
REINZ CEO Jen Baird (pictured above) described the market’s general theme for the month as one of abundance, with increased sales counts, stock levels, and quicker property turnovers compared to last year.
Sales performance and economic context
Despite broader economic challenges such as difficulties in securing finance and job market fluctuations, the total number of properties sold in New Zealand saw a significant year-on-year increase of 6.8%. The Gisborne region led with a dramatic 112% increase.
“Nationally, seasonally adjusted figures show a 5.2% increase, indicating that year-on-year sales counts performed slightly above expectations – an encouraging sign despite the current economic challenges,” Baird said in a media release.
Listings and stock levels
May witnessed a 25.4% jump in listings compared to the same period last year, with Wellington, Hawke’s Bay, and Auckland recording notable increases. Stock levels also rose by 22% year-on-year.
“With a continued flow of new options coming to the market adding to a large level of stock this does provide a lot of choice for buyers and a sense that they can take their time to make decisions,” Baird said.
Price trends and regional variations
The national median sale price experienced a slight year-on-year decrease of 1.3%. However, some regions like the West Coast saw significant price increases.
“The seasonally adjusted figures show a 1.2% decrease, showing prices performed slightly below the change usual for May,” Baird said. “The volume of listings and choice can affect prices as well as vendor price points adjusting to buyer demands.”
Auctions and market dynamics
The number of properties sold via auction rose significantly, with a national total of 833 auctions representing 13.2% of all sales. The median days to sell a property nationally decreased by five days year-on-year, indicating a quicker market turnover.
Economic outlook and future trends
Baird remains optimistic about future market activity, despite potential economic slowdowns.
“There’s solid buyer interest and activity, and more listings are coming to a well-stocked market,” she said. “While some buyers are taking their time, others are snapping up properties at attractive prices before the expected slowing during the winter months and the potential reemergence of investors mid-year.
“It might be a few months yet before the residual impact of readjustments post the government’s 100-day plan and budget are felt. Indeed, there are cool economic breezes being felt but there are signs of more positive activity ahead.”
Click here to read the full REINZ report.
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