January sales at record low - REINZ
Unsettled weather has played a part in keeping property buyers away, with January REINZ figures showing the sales count for nine regions, including Auckland, was the lowest since records began.
According to the Real Estate Institute of New Zealand (REINZ), 2,759 properties sold nationally in January, down 27% year-on-year, while in Auckland, the sales count was 943, down 29.9%.
The national median house price was $762,500, down 13.3% year-on-year. In Auckland, the median house price dropped below $1m to $940,000, down 21.7%, REINZ figures show.
New listings were down 16% nationally year-on-year, and the number of new residential property sales were down 27% (down 38.7% compared to December).
REINZ chief executive Jen Baird (pictured above) told NZ Adviser that it was too early to see evidence of the Auckland Anniversary weekend floods in the January figures, noting that individual suburbs were affected differently.
However, as around one third of Auckland properties are rented, Baird said that REINZ experienced a “significant impact” on its property management team.
Historically, Auckland Anniversary weekend is usually quieter for the real estate market, but Baird also noted that patches of poor weather since Christmas (December 2022) had played a part in keeping buyers away.
“January is traditionally a slower month as sellers and buyers are on holiday. This month is no exception, although intensified in Auckland by relatively poor weather, with the least number of sales since records began (excluding April 2020 during the country’s lockdown) at 943 sales,” Baird said.
Median price for Auckland retreats below $1m
The median house price in Auckland fell below $1m to $940,000 in January, and Baird noted that REINZ figures for Auckland had retreated quite significantly.
“We’ve seen Auckland numbers come back quite considerably this year and January is no exception to that,” Baird said.
Similarly, realestate.co.nz said in January that average asking prices for properties listed on its website had trended downwards over the last 12 months, the total sum of average asking prices for residential dwellings in Auckland was down 6.7% in 2022 compared to 2021.
Regional differences in median house prices
In addition to Auckland, the biggest drops in median sale prices were seen in Wellington (down 16.4% year-on-year to $765,000), Northland (down 16.6% to $685,000) and Bay of Plenty (down 18.8% to $765,000.
While most regions experienced a decrease in the median value, REINZ figures showed that median sales prices in Gisborne, Taranaki and West Coast increased by 3.8%, 0.8% and 5.3% year-on-year respectively.
In Hawkes Bay, which experienced significant impacts from Cyclone Gabrielle, the median house price dropped 16.2% year-on-year, to $657,500.
The median house price in Canterbury decreased by a marginal 1.5%, to $640,000.
Baird told NZ Adviser that Canterbury was quite a different market to Auckland and Wellington, with many buyers continuing to see value in the region. West Coast, Taranaki and Gisborne saw marginal increases in median prices year-on-year.
“West Coast in particular, people have seen value in that market for quite some time … there is a regional variation,” Baird said.
Auction sales decline, days to sell increases
Despite reports that auction activity had increased in February, Baird said the popularity of sale by auction declined over 2022. However, she also noted that January was typically a low month for auction sales.
Baird said that a reduction in auction campaigns was likely to have had an impact on the number of days it look to sell, along with more choice for buyers.
“Across last year, we saw lots of people moving away from using an auction method of sale … the amount of time it’s taking to sell a property is up 16 days year-on-year (37 days v 53 days),” Baird said.
Commenting on the buyer groups that were present in the market, Baird said existing owner-occupiers appeared to be the more dominant force.
More recently, Baird said that real estate agents had started to report a rise in activity. In Waikato for example, real estate agents were reporting that open homes were busy, with an influx of first home buyers, she said.
“We know that the banks are competing for business quite actively … last year, people felt it was difficult to get their finance sorted … we are hearing that is a bit easier now,” Baird said.
“That will make a big difference for first home buyers.”
Buyers encouraged to do their research
As figures vary by region and market sentiment can vary, Baird suggested that buyers get a solid handle of the suburb/s they’re interested in.
“One of the things I always say to people is if you’re looking to be in the market now, calling your local agent and finding out exactly the dynamics of your market is really important,” Baird said.
