“Across New Zealand, confidence in the property market is tempered with caution,” says REINZ Chief Executive Lizzy Ryley. “While many expected the recent OCR change to encourage more activity, the history of REINZ data suggests that we may be cautiously optimistic that we will see an increase in activity in the market in the coming months. At this stage, both buyers and sellers appear to be taking a measured approach as they watch how the market unfolds, particularly as we near spring.”
August data shows a level of stability in the market. There is signs of increased confidence, optimism and activity compared to the previous year. Several regions reported notable increases in activity, and year-on-year listing numbers continue to rise. The volume of properties for sale continues to provide a lot of choice for buyers, alongside the expectation that rates will fall further towards the end of this year, providing the much needed relief to property owners and those in the position to buy, which may increase sales volumes nationwide.
Market Summary:
Sales across the country stalled in August, with sales declining year-on-year and month-on-month for both New Zealand (down 3.7% and 11.1% respectively), to 5,866 sales, and New Zealand, excluding Auckland (down 1.3% and 11.3% respectively), to 4,052 sales. August has highlighted some interesting trends across the country. While sales have eased in parts of the market, most regions are still seeing increases in median prices. Properties are taking different lengths of time to sell depending on the area, which shows that while the market is active, buyers are considering their options carefully. While we’re seeing more new listings coming onto the market, sales aren’t keeping pace, which is reflected in the median days to sell in some regions. Across New Zealand, it now takes around 48 days to sell a property, slightly faster than this time last year, but in some regions, such as the West Coast, properties are staying on the market much longer.
Northland Stats:
Owner-occupiers and first home buyers were the most active buyer groups, with more enquiries from buyers in Auckland reported in Kerikeri.
Most vendors met current market conditions regarding asking prices, with more willing to negotiate lower offers. Attendance at open homes was generally good, increasing throughout the month for newer listings, while older stock didn’t attract the same interest. Auction room attendance varied across the region, with some experiencing strong attendance and bidding, while others saw lower numbers of attendees.
Factors such as lower interest rates, increased attendance at open homes, and a buoyant market influenced market sentiment. Local salespeople are cautiously optimistic that the spring and summer months will see a rise in activity and further boost confidence and positivity for both buyers and sellers.