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Tuesday, 18 April 2023
Nationally, the median price decreased 12.9% annually to $775,000 in March 2023. Days to sell have risen to 45 days for March 2023 — up 9 days compared to March 2022 and down 15 days from 60 when compared to February 2023.
“Inventory levels are returning to the long-term average, which presents an opportunity for buyers looking to take advantage of the lower prices and less competition. REINZ members tell us first home buyers are actively returning in the regions with the advantage of choice as investors remain absent,” says Baird.
The total number of properties sold across New Zealand in March 2023 was 5,877, up from 4,113 in February 2023 (+42.9%), and down 15.0% year-on-year. New Zealand excluding Auckland sales counts decreased by 10.0% year-on-year but increased 34.3% month-on-month.
“There are clear signs that we are in the lower phase of the cycle, but with nearly 6,000 properties sold, vendors who are motivated to sell are meeting the market with more realistic expectations on time frame and price. Those who need to sell are still selling.”
Nationally, new listings decreased by 17.7%, from 11,224 listings in March 2022 to 9,242 listings in March 2023. Compared to February 2023, listings increased by 13.5% from 8,143 to 9,242. New Zealand excluding Auckland listings decreased 15.2% year-on-year from 7,191 to 6,099. Auckland’s listings were down 22.1% from 4,033 to 3,143 year-on-year with the only regions increasing being Taranaki (+9.7%) and Marlborough (+18.6%).
“The weather events of the beginning of year are still being felt in those regions heavily impacted. The market is likely to remain in this phase as New Zealanders wait for peak of inflation, a settling in interest rates and some clarity around the possible outcome of the election. That said, with the number of listings continuing to ease, we may start to see the supply/demand balance change in some areas.” (REINZ)
Regional highlights
- Whilst prices continue to ease annually in most regions, West Coast and Southland saw increases in median sale price to $365,000 and $450,000 respectively.
- Auckland had a 16.6% decrease in the median sale price for March year on year but remains just over $1m price point at $1,000,600.
- Marlborough and Taranaki were the only regions that had an increase in new listings for March year on year at 18.6% and 9.7% respectively.
- Marlborough had a 16 day increase in days to sell and was the only region to see an increase month-on-month and the largest year-on-year increase of 49 days.
Northland’s median price decreased 14.2% to $710,000 when compared to this time last year.
“Vendors are coming to terms with the reduced price levels and are more willing to negotiate. There was an increase in open home attendance, particularly near the end of March perhaps due to better weather.
“Buyers are out there but are slow to make decisions and are cautious about overpaying. First home buyers are starting to seek more opportunities. Sales counts were down 25.4% year-on-year and properties are still spending a lengthy time on the market — the median days to sell increased by 24 days on March 2022.” (REINZ)
The current Days to Sell of 67 days is much more than the 10-year average for March which is 51 days. There were 44 weeks of inventory in March 2023 which is 25 weeks more than the same time last year.
The median price in Tāmaki Makaurau decreased 16.6% year-on-year to $1,000,600.
“Across Auckland, owner occupiers were the most active buyer pool, and in West and South Auckland, first home buyers were a close second. Salespeople in Central Auckland say that there was a decrease in first home buyer activity due to continued difficulty in securing finance and with many young people now travelling or moving overseas.
“West Auckland is still dealing with the aftermath of Cyclone Gabrielle. Some homes are still affected by flooding and are red and yellow stickered. Salespeople in the area must be cautious when appraising property as the weather damage will be an important factor for potential purchasers.” (REINZ)
The current Days to Sell of 45 days is more than the 10-year average for March which is 36 days. There were 30 weeks of inventory in March 2023 which is 10 weeks more than the same time last year.
Waikato’s median price decreased annually by 12.3% in March 2023 to $739,000.
“There was a noticeable lift in buyer activity throughout March across all buyer types apart from developers due to difficulty securing finance for new builds.
“Taupō and Hamilton saw an increase in open home attendance from last month, but limited access to the Coromandel due to Cyclone Gabrielle meant open home attendance there was lacklustre. Sales counts across the Waikato were down 9.1% year-on-year, with the Thames-Coromandel seeing a substantial decrease of 33.3%. People are not travelling to the Coromandel and are holding off looking to purchase until access to the area is fixed.”
“Salespeople across the Waikato say that buyers are holding more control overall and properties are taking longer to sell with an increase of subject to sale offers.” (REINZ)
The current Days to Sell of 45 days is more than the 10-year average for March which is 35 days. There were 32 weeks of inventory in March 2023 which is 15 weeks more than the same time last year.
Median prices in the Bay of Plenty decreased 11.8% annually to $820,000.
“First home buyers and owner occupiers were active, and in Rotorua developer investors were close behind — some are putting projects together for social housing.
“Buyers are not acting with urgency and vendors feel like they are losing money, however, local salespeople say that unless they bought the property during the market’s peak, value loss is on paper only and vendors must realise that the market is now in its correction phase.
“The upcoming election, cost of living, and inflation is seeing most people sit tight unless they need to move. Vendors are needing to prepare themselves for an extended selling period.” (REINZ)
The current Days to Sell of 61 days is much more than the 10-year average for March which is 41 days. There were 31 weeks of inventory in March 2023 which is 16 weeks more than the same time last year.
The median price in Gisborne decreased 11.9% annually to $630,000 this March.
“Owner occupiers remain the most active buyer pool whilst first home buyers and investors continue to struggle with securing finance.
“Unlike most regions in March, Gisborne saw an increase in its sales count — up 9.1% year-on-year. Levels of inventory are down 8.0% and new listings also saw a decrease of 43.9% — the largest decrease of all regions, perhaps tipping the scales of supply versus demand — something we haven’t seen in quite some time.” (REINZ)
The current Days to Sell of 54 days is much more than the 10-year average for March which is 40 days. There are 17 weeks of inventory in March 2023 which is 7 weeks more than last year.
Hawke’s Bay saw its median price decrease annually by 17.0% in March 2023 to $661,000.
“Rises in interest rates continue to see investors step back from the market. Some vendors still hold high price expectations, but more are listening to the market now.
“Numbers at open homes have increased and sales counts saw a slight uptick of 0.6% year-on-year. Due to Cyclone Gabrielle, Hawke’s Bay is still seeing insurance pay-outs flow through for property, but activity is on the rise.” (REINZ)
The current Days to Sell of 64 days is much more than the 10-year average for March which is 36 days. There were 22 weeks of inventory in March 2023 which is 6 weeks more than the same time last year.
The median price in Taranaki decreased 7.7% year-on-year to $600,000.
“Buyers remain hesitant to act, likely due to lingering uncertainty about the property market and the economy. Most vendors are realistic about the asking price and are aware that the days on market have increased significantly from a year ago.
“The region saw an increase in new listings — up 9.7% year-on-year. Financial pressures appear to be having the most impact on the Taranaki market at the moment. This includes forecast rising interest rates and the increasing cost of living. It continues to lean towards a buyers’ market in Taranaki and in most cases, buyers do not feel threatened by the presence of other buyers in the market.” (REINZ)
The current Days to Sell of 39 days is more than the 10-year average for March which is 33 days. There were 23 weeks of inventory in March 2023 which is 10 weeks more than the same time last year.
Median prices in Manawatu/Whanganui are down 13.9% year-on-year to $525,000.
“Many vendors are accepting the market adjustment if they are motivated to sell. Those that are testing the market with high price expectations are being left on the market as purchasers are only buying reasonably priced properties listed by motivated vendors.
“There was generally good attendance at open homes, particularly with new listings. Local salespeople say increases to the Official Cash Rate, inflated asking prices and difficulty securing finances are the major handbrakes on its market currently.” (REINZ)
The current Days to Sell of 46 days is more than the 10-year average for March which is 36 days. There were 26 weeks of inventory in March 2023 which is 5 weeks more than the same time last year.
The median price in the capital saw a 20.0% decrease in its median price to $750,000 this March.
“Most vendors are realistic in their expectations and are only coming onto the market if they need to.
“Rises to the Official Cash Rate, a fear of the unknown, and the upcoming election seem to be having the most impact on Wellington’s market, according to Wellingtonian salespeople. Sales counts saw an annual decline of 3.2%.” (REINZ)
The current Days to Sell of 49 days is much more than the 10-year average for March of 32 days. There were 16 weeks of inventory in March 2023 which is 1 week less than the same time last year.
Median prices in Nelson and Tasman decreased annually by 19.3% and 3.4% to $666,000 and $840,000 respectively.
“In Marlborough, the median price was unchanged from this time one year ago at $660,000. Salespeople in Marlborough say that are fielding more enquiry from buyers in the North Island following Cyclone Gabrielle.
“Securing finance and rising interest rates are the biggest hindrances on the Nelson, Marlborough and Tasman markets currently. Attendance at open homes varied but new listings are bringing the most traffic. Marlborough saw a substantial increase in its new listings in March — up 18.6%, and across all three regions inventory levels remain high.” (REINZ)
The current Days to Sell of 54 days is much more than the 10-year average for March which is 33 days. There were 32 weeks of inventory in March 2023 which is 10 weeks more than the same time last year.
The median price on the West Coast was $365,000 in March this year, reflecting an annual increase of 5.8%.
“The West Coast was the only region to see a decrease in its median days to sell year-on-year — down 8 days on March 2022.
“West Coast salespeople say that the recent interest rate increases may help with attracting further interest to the region as its market remains more affordable in comparison to many other regions in New Zealand.” (REINZ)
The current Days to Sell of 26 days is much less than the 10-year average for March which is 56 days. There were 34 weeks of inventory in March 2023 which is 17 weeks more than the same time last year.
Canterbury’s median price decreased 2.9% annually to $680,000.
“Across Timaru, Ashburton, and Christchurch owner occupiers were most active. Attendance at open homes picked up for properties in the mid-level price range.
“Some vendors are still coming to the market with high price expectations, but most are now meeting the market and are realistic about buyer feedback and the economy. There have also been realistic expectations in the auction room and adjustments in reserves if they can see bidding. Vendors are moving their value expectations to ensure an unconditional sale on their terms.
“Economic sentiment and interest rates are having the biggest impact on Canterbury’s market; however, value change is softer in the region than in other larger cities and local salespeople say they are still seen as a good value proposition.” (REINZ)
The current Days to Sell of 35 days is more than the 10-year average for March which is 31 days. There were 20 weeks of inventory in March 2023 which is 9 weeks more than the same time last year.
Dunedin: Dunedin’s median price decreased 12.2% annually to $570,000 this March.
“Owner occupiers are a dominant buyer pool, and first home buyers are easing their way back into the market. Investors have been absent for a while now but are starting to show interest again given the increasing yields as a result of the price pull-back and a strong rental market.
“There has been a feeling of hesitation in the market particularly with the continued increases to the Official Cash Rate and subsequent rises to interest rates. Sales counts have decreased 9.0% when compared to this March 2022 but are a significant increase on the first two months of 2023.” (REINZ)
Queenstown: The median price in the Queenstown-Lakes District saw a small decrease in its median price of 1.4% year-on-year to $1,405,000.
“Owner occupiers remain the most active buyer pool whilst first home buyers continue to struggle with securing finance due to the high median price. There continues to be a steady increase in buyers from outside the region looking to relocate to Queenstown.
“Open home attendance has been subdued compared to what it was a year ago, but there is still plenty of interest. Many buyers still have a fear of overpaying, adding to a lower sales count — down 9.2% annually. However, according to local salespeople supply is keeping up with demand and there are signs of market confidence making a comeback.” (REINZ)
The current Days to Sell of 45 days is much more than the 10-year average for March which is 32 days. There were 22 weeks of inventory in March 2023 which is 8 weeks more than the same time last year.
Southland was one of two regions to see an annual increase in its median price this March — up 2.3% to $450,000.
“Local salespeople report a lack of urgency among buyers, particularly with first home buyers and investors.
“Attendance at open homes has been low, largely due to continued rising interest rates, negative media coverage on the housing market and tightened lending criteria. This has also seen sales counts slow which are down marginally by 0.7% this March.” (REINZ)
The current Days to Sell of 38 days is more than the 10-year average for March which is 32 days. There were 21 weeks of inventory in March 2023 which is 10 weeks more than the same time last year.
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