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Thursday, 18 January 2024
REINZ Chief Executive Jen Baird says December showed that the trend of steady improvement in property market activity has set in thanks to interest rates stabilising, the new Government announcing more details of its plans, and the arrival of the more active months in the property cycle.
“The December figures showed a boost in activity in the market compared to a year earlier. We’ve been observing slow and steady improvement recently and we round out 2023 with continued improvement in sales activity in the market.
The number of properties sold increased by 14.1% (from 4,509 to 5,145) year-on-year across New Zealand, compared with December 2022. Month-on-month, sales for New Zealand decreased by 20.8% (from 6,493 in November 2023 to 5,145 in December 2023), in keeping with the quieter levels of activity that usually happen over the holidays. For New Zealand excluding Auckland, the total number of properties sold reflected a similar pattern, increasing by 17.0% (from 3,135 to 3,667) year-on-year, and decreasing by 16.7% (from 4,401 to 3,667) month-on-month, as expected.
Looking ahead, although interest rates and other economic factors continue to influence the market, many buyers and sellers are increasingly positive. There are higher levels of enquiry from potential buyers and sellers across the country, which will boost market activity further through summer. These factors, combined with the drop in the number of listings, are expected to boost demand, along with the potential return of investors to the market as the government moves to change regulation impacting that sector. All up, we anticipate that activity will continue to pick up as the new year gets underway,” comments Baird.
Regional highlights
- Tasman and West Coast both recorded the highest year-on-year increase in median sale price, of 5.0%.
- Tasman had the highest increase in sales counts, up by 47.8% annually. Other regions with notable increases were Northland (31.3%), Waikato (24.1%), Bay of Plenty (24.1%), Gisborne (35.7%), Hawke’s Bay (27.7%), and Marlborough (29.1%).
- Nelson had the biggest decrease in median Days to Sell month-to-month, reducing by 6 days compared to November 2023.
Median prices in Northland decreased by 15.2% year-on-year to $625,000.
“First-home buyers and investors were the most active buyer group in the region. Local agents report noticeable increases in interest across all types of buyer groups in Whangarei, while in Kerikeri, interest has been strongest in lower-priced and higher end properties.
Most vendors are setting realistic price expectations. Open home attendance levels and auction activity reduced near the holiday period, although good levels of auction sales were noted for mid-level properties in Whangarei. Interest rates continue to impact the market. Increased numbers of listings over November and December mean buyers now have a lot more choice and time to make decisions. Local salespeople are seeing more positivity and confidence in the market, and predict this will continue, with sales picking up after the holiday season and investors returning in anticipation of changes to Brightline test requirements.” (REINZ)
The current median Days to Sell of 55 days is much more than the 10-year average for December which is 43 days. There were 37 weeks of inventory in December 2023 which is 2 weeks more than the same time last year.
In Auckland median prices increased by 1.1% year-on-year to $1,050,000.
“Buyer group activity varied across the region, with owner occupiers and first-home buyers most active in South Auckland, and owner occupiers the most active in Central Auckland and Rodney District. Most vendors were realistic with their price expectations.
Local agents report that open home numbers reduced close to the holidays and auction activity was relatively quiet as well, although some companies had good results with this sales approach. Interest rates are having the greatest impact on market sentiment, with some buyers and vendors taking a ‘wait and see’ approach. Most agents are cautiously optimistic that enquiries, listings, and activity will slowly lift in the next few months.” (REINZ)
The current median Days to Sell of 37 days is more than the 10-year average for December which is 34 days. There were 24 weeks of inventory in December 2023 which is 10 weeks less than the same time last year.
Median prices in Waikato increased by 1.7% year-on-year to $762,448.
“First-home buyers and owner-occupiers were the most active buyer groups, with some activity by holiday home buyers and investors in Taupo as well. Most vendors are setting realistic price expectations, but some are raising their expectations in anticipation of prices lifting soon.
Open-home attendee numbers were high in Coromandel and Taupo, as summer visitors flocked to these areas. Auction activity varied, with a few more properties being sold under auction. Local agents report that the reopening of State Highway 25a in Coromandel has been a big factor in lifting positive market sentiment and activity there. Elsewhere, agents have observed that some buyers and vendors are waiting to see what will happen with new legislation, but overall, there’s a sense of positivity in the market. Salespeople predict the market will be busy over the next few months.” (REINZ)
The current median Days to Sell of 37 days is more than the 10-year average for December which is 35 days. There were 24 weeks of inventory in December 2023 which is 12 weeks less than the same time last year.
Bay of Plenty’s median prices decreased by 4.0% year-on-year to $840,000.
“First-home buyers were the most active buyer group across the region, while owner-occupiers were also out in force in Tauranga. Investor activity in Rotorua was notably higher.
Vendor expectations varied, with some holding firm on their original price expectations, and others being willing to meet the market. Open-home attendance levels were steady until the traditional slow down for the holidays. Auction activity was mixed in the region, with clearance rates remaining steady and more buyers willing to bid in some areas.
Interest rates, the cost of living, and economic uncertainty – both locally and globally – continue to influence market sentiment. However, local agents report signs of positive sentiment in December and are cautiously optimistic that after the holiday period ends, and the new Government settles in, activity will pick up.” (REINZ)
The current median Days to Sell of 43 days is more than the 10-year average for December which is 37 days. There were 25 weeks of inventory in December 2023 which is 6 weeks less than the same time last year.
In Gisborne median prices decreased by 5.1% year-on-year to $555,000.
“The region recorded one of the highest year-on-year increases in sales count, up by 35.7% compared with the previous December.
Gisborne also saw an encouraging year-on-year reduction in the median Days to Sell, with the median in December 2023 being 9 days less than was recorded in December 2022.” (REINZ)
The current median Days to Sell of 39 days is more than the 10-year average for December which is 34 days. There are 14 weeks of inventory in December 2023 which is 10 weeks less than last year.
Hawke’s Bay’s median price decreased by 5.6% year-on-year to $661,000.
“Owner-occupiers and first-home buyers were the most active groups in the region, with buyer activity increasing. Vendor expectations are realistic, with most vendors adjusting their price to meet the market.
Open home attendance levels picked up, especially for the low to mid-range of the market. Local sales agents report that market sentiment is strengthening as interest rates have stabilised and there is limited stock available. Buyer activity has increased, with many buyers wanting to make sure they don’t miss out before prices start to lift again, and investor activity is increasing as well. Agents predict that the market will continue to strengthen over the next few months.” (REINZ)
The current median Days to Sell of 43 days is more than the 10-year average for December which is 34 days. There were 21 weeks of inventory in December 2023 which is 7 weeks less than the same time last year.
Taranaki’s median price increased by 3.2% year-on-year to $640,000.
“Owner-occupiers continued to be the most active buyer group, but investor activity is increasing. Most vendors are taking a realistic view with their price expectations. Local agents reported good numbers of open home attendees, especially for new listings, earlier in the month, before attendance tapered off in the lead-up to the holidays.
There were strong levels of enquiries for all types of property. Sales numbers were generally low and market activity overall was relatively quiet as some buyers prefer to wait until the new year before deciding about moving. However, local salespeople predict that the high levels of enquiry they’ve been receiving will lead to the market becoming stronger in the coming months.” (REINZ)
The current median Days to Sell of 35 days is more than the 10-year average for December which is 30 days. There were 23 weeks of inventory in December 2023 which is 1 week less than the same time last year.
The median price for Manawatu/Whanganui decreased by 5.5% year-on-year to $524,500.
“Owner-occupiers were the most active buyer group in the region; in contrast, there were very few investors in the market. Local agents report that vendors are realistic about their price expectations and meeting the market. As traditionally happens in December, open home attendance numbers reduced in the lead-up to the holidays, and auction activity was quieter as well. Sales figures also reflected the quieter activity levels, due to the holidays.
Interest rates and difficulty securing finance approvals continue to impact the market. However, local agents predict that following the change of Government, market sentiment will improve within the first 2-3 months of 2024.” (REINZ)
The current median Days to Sell of 37 days is more than the 10-year average for December which is 31 days. There were 22 weeks of inventory in December 2023 which is 5 weeks less than the same time last year.
Wellington’s median price increased by 1.5% year-on-year to $807,000.
“First-home buyers continued to be the most active buyer group in the region. Vendors’ price expectations were set to meet the market.
Open home attendance and auction activity levels were lower, in keeping with the usual quieter period over the holidays. Local agents report that a lot of vendors and buyers are focused on what the new year might bring, with enquiry levels increasing. Agents predict that buyer activity may lift ahead of any potential price increases.” (REINZ)
The current median Days to Sell of 31 days is more than the 10-year average for December of 30 days. There were 14 weeks of inventory in December 2023 which is 8 weeks less than the same time last year.
In Nelson, the median price increased by 4.1% year-on-year to $718,500. The median price in Marlborough decreased by 10.6% year-on-year to $635,000. Tasman’s median price increased by 5.0% year-on-year to $840,000.
“Activity levels were consistent across all buyer groups in Nelson, while in Blenheim, owner-occupiers were the most active. Most vendors have realistic price expectations. Open home attendance decreased close to the holidays, and auction activity was light, although where auctions took place, the results were successful.
Factors such as interest rates continue to impact market sentiment. Local salespeople expect there will likely be potential investors among the high numbers of visitors to the region over the holiday season, and an expected second wave of visitors in late summer. Agents predict that market sentiment and listings will lift in the new year, but this will continue to be held back a little due to the national economic factors and global events.” (REINZ)
The current median Days to Sell of 44 days is much more than the 10-year average for December which is 32 days. There were 25 weeks of inventory in December 2023 which is the same as the same time last year.
In the West Coast, median prices increased by 5.0% year-on-year to $360,000.
“Sales counts were higher compared to December 2022. Properties are also being sold more quickly, with median Days to Sell reducing by 8 days year-on-year.
Factors such as interest rates and the cost of living continue to impact some buyers." (REINZ)
The current median Days to Sell of 39 days is much less than the 10-year average for December which is 73 days. There were 39 weeks of inventory in December 2023 which is 3 weeks more than the same time last year.
Canterbury’s median price increased by 1.4% year-on-year to $660,000.
“Owner-occupiers were the most active buyer group in the region, with first-home buyers also being active in Christchurch. Most vendors are setting their price expectations to meet the market.
Open home attendance numbers were steady, before tapering off close to the holidays. In Christchurch, there were good levels of attendance at auctions; clearance rates varied, and many properties were sold through negotiation in the auction room after the auction call. Interest rates and the cost of living continue to have significant influence on market sentiment, and local agents reported some buyers and vendors having a ‘wait and see’ approach, while others are acting now. Agents predict that activity will be busier this year, with signs of increased positivity and people generally being more ready to list properties or prepare to buy.” (REINZ)
The current median Days to Sell of 31 days is the same as the 10-year average for December which is 31 days. There were 14 weeks of inventory in December 2023 which is 4 weeks less than the same time last year.
Dunedin City - “Dunedin’s median price increased by 2.2% year-on-year to $613,000.
First-home buyers and owner-occupiers were the most active buyer group. Some vendors’ price expectations have lifted slightly, in anticipation of the market improving. Open home attendance for new homes remains strong.
Factors such as interest rates and the cost of living continue to impact the market, but there was a sense of optimism in December.” (REINZ)
Queenstown Lakes - “First-home buyers and owner-occupiers were the most active buyer groups in the region. Vendors remain optimistic and stayed firm on their price expectations.
There were good levels of open home attendance during December. In the auction rooms, some buyers aren’t willing to meet vendors’ expectations resulting in some sales being negotiated following auctions. Interest rates and the cost of living are the main factors influencing market sentiment and local agents report that buyers and sellers have been watching the market closely before making any decisions. However, agents are seeing signs of positivity and predict that the market will improve, and investor activity will increase soon.” (REINZ)
The current median Days to Sell of 36 days is more than the 10-year average for December which is 31 days. There were 17 weeks of inventory in December 2023 which is 7 weeks less than the same time last year.
The median price in Southland increased by 2.3% year-on-year to $445,000.
“No buyer group was particularly active compared with others, although local agents report an increase in interest from investors. Some vendors are setting their price expectations to meet the market, and others are opting to stay firm with their original expectations and wait.
Open home attendance tapered off near the holidays, and auction activity was also quiet. Interest rates and tax policy on investment continue to impact market sentiment with some change expected later this year. Local agents report that the market is in a state of flux, with some signs of positivity potentially pointing to the market improving slightly within a few months. If interest rates stabilise and tax rules for investors are improved, there’s a sense of cautious optimism for the region.” (REINZ)
The current median Days to Sell of 42 days is much more than the 10-year average for December which is 31 days. There were 17 weeks of inventory in December 2023 which is 1 week less than the same time last year.
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