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Tuesday, 15 August 2023
The July 2023 data from the Real Estate Institute of New Zealand (REINZ) indicates increased market activity despite low new listings. Total stock decreased, and some regions had stable median prices. REINZ's CEO, Jen Baird, noted rising buyer interest with slight sales increases in many regions compared to last year, and a gradual easing of year-on-year median price declines. The total properties sold in July 2023 slightly rose by 1.6% (4,903 properties) compared to July 2022 but decreased by 15.6% month-on-month. Certain regions like Auckland, Waikato, Bay of Plenty, and others saw sales count increases. National inventory levels decreased due to competitive pricing and increased buyer activity before the upcoming election. New listings declined by 17.6% year-on-year. Median sale prices decreased nationally by 4.9%, with Auckland's median sale price falling by 8.8%. The national median days to sell remained stable at 48 days. The House Price Index (HPI) increased slightly in July 2023 but reflected a 6.9% decline compared to the previous year. The housing market's trajectory continues to be influenced by various factors including government policies, economic conditions, and global influences.
Regional highlights
- Marlborough (0.3%), Otago (4.6%) and Southland (1.2%) saw an increase in median sale price with Otago increasing 4.6% both month-on-month and year-on-year from $650,000 to $680,000 in both instances.
- Nelson had the biggest month-on-month increase with a 13.7% rise in median sale price from $650,000 to $739,000.
- Bay of Plenty had both a yearly and monthly increase in sales count with a 7.8% increase month on month (347 to 374) and a 13.7% increase year on year (329 to 374).
- The West Coast again had the highest sales count with a 31% increase year on year from 29 to 38 properties sold.
In Northland, median prices decreased by 3.9% year-on-year to $672,500.
“First-home buyers were the most active group in Whangarei in July, with enquiries from investors increasing as well, while in Kerikeri, owner-occupiers were the most active. Some vendors are holding firm with their original price expectations, while others are setting their prices to reflect market conditions.
Activity in Whangarei auction rooms picked up, with more properties being sold under the hammer.
Uncertainty about interest rates and anticipation of the election continues to influence decision making, but local salespeople report signs of confidence rising among some buyers — especially first-home buyers. Local agents are cautiously optimistic that the market will improve in the next few months, albeit with a possible quiet spell in the lead up to the election.” (REINZ)
The current median Days to Sell of 68 days is much more than the 10-year average for July which is 54 days. There were 46 weeks of inventory in July 2023 which is 9 weeks more than the same time last year.
Auckland’s median prices decreased by 8.8% year-on-year to $990,000.
Local salespeople report first-home buyers were the most active buyers in North and South Auckland, owner-occupiers were the most active in central areas. Developer interest also went up in South Auckland. There was increased activity across all buyer groups in South Auckland, and auction activity rose slightly in most parts of the region. Elsewhere remained quiet, due to market uncertainty and election anticipation.
More vendors adjusted their prices to market conditions, but a few continued to wait in hope of achieving their price expectations.
Current interest rates, ongoing bad weather, and anticipation of the election continue to influence buyer and vendor decisions. Local salespeople predict the market will continue to be relatively quiet until after the election.” (REINZ)
The current median Days to Sell of 44 days is more than the 10-year average for July which is 37 days. There were 21 weeks of inventory in July 2023 which is 8 weeks less than the same time last year.
In the Waikato, median prices decreased by 8.9% year-on-year to $720,000.
“Owner-occupiers were the most active buyer group in Thames-Coromandel and Hamilton, with local salespeople reporting a growing number of first-home buyers also in Hamilton. In Taupo, all buyer groups were active.
Most vendors have adjusted their price to meet the market, but some are continuing to wait for more favourable conditions. Open home attendance increased, thanks in part to better weather conditions – even in Coromandel, where road access has been challenging following Cyclone Gabrielle.
Local salespeople report signs of improving confidence, with increased buyer activity. Local agents are cautiously optimistic of the market picking up later this year, with a possible quiet spell ahead of the elections.” (REINZ)
The current median Days to Sell of 59 days is much more than the 10-year average for July which is 41 days. There were 21 weeks of inventory in July 2023 which is 7 weeks less than the same time last year.
In Bay of Plenty, median prices decreased by 7.0% year-on-year to $800,000.
“First-home buyers and owner-occupiers continued to be the most active buyer groups. Open home attendance and auction activity has lifted in Tauranga.
Some vendors are adjusting their price expectations in light of market conditions, while others are holding fast until they achieve their original price expectations.
Anticipation of the coming elections, the impacts of interest rates, the economic climate, and lending restrictions all continue to shape market sentiment. Local salespeople report more buyers trying to secure properties and more offers being made across the region. There are signs of optimism, but local salespeople predict the market will remain largely the same until after the election.” (REINZ)
The current median Days to Sell of 56 days is more than the 10-year average for July which is 46 days. There were 21 weeks of inventory in July 2023 which is 9 weeks less than the same time last year.
Median prices in Gisborne decreased by 8.6% year-on-year to $575,000.
“There were signs of green shoots in Gisborne in July, a welcome change after months of being affected by severe weather events. First-home buyers were the most active buyer group, coming back into the market despite the added challenges created by interest rates and lending restrictions.
Most vendors are taking time to consider market conditions, before adjusting their price expectations, while others were still holding back.
Local salespeople reported seeing a marked improvement in attendance at open homes, and auctions were likewise showing strong bidding.
The current economic conditions and anticipation of the election continued to impact market sentiment amongst both buyers and sellers.” (REINZ)
The current median Days to Sell of 47 days is more than the 10-year average for July which is 42 days. There are 10 weeks of inventory in July 2023 which is 22 weeks less than last year.
In Hawke’s Bay, median prices decreased by 8.7% year-on-year to $662,000.
“First-home buyers and owner-occupiers were the most active buyer pool in the region and attendance at open homes increased.
Most vendors have adjusted their price expectations based on current market conditions as well as the continued impact of severe weather conditions. However, some vendors are staying firm on their price expectations if they believe their property may have specific appeal to some buyers.
Local agents report a shift in market sentiment, with a sense of recovery after the lows of early 2023, and buyers feeling more confident about making a purchase. Local salespeople have noted that housing stock has been declining, which may – depending on future listing numbers – see prices lift in the region, especially in the first-home buyers’ sector.” (REINZ)
The current median Days to Sell of 48 days is more than the 10-year average for July which is 38 days. There were 15 weeks of inventory in July 2023 which is 14 weeks less than the same time last year.
Taranaki’s median prices decreased by 8.1% year-on-year to $570,000.
“Owner-occupiers continued to be the most active buyers in the region. Recent months have seen a decline in sales to out-of-town buyers, although enquiries continue to arrive from across New Zealand. Most vendors are adjusting their asking prices to reflect market conditions and are aware that properties are taking longer to sell; for some vendors, the additional time that a prospective property remains on the market is a concern.
Local salespeople report that it continues to be a buyers’ market in Taranaki, as many buyers have adopted a ‘wait and see’ approach before committing to purchasing. Enquiry levels are good and appraisal activity continues to be high. Local agents predict that the market will stay slow in anticipation of the coming election, with activity picking up afterwards.” (REINZ)
The current median Days to Sell of 51 days is much more than the 10-year average for July which is 38 days. There were 23 weeks of inventory in July 2023 which is 3 weeks more than the same time last year.
Median prices in Manawatu/Whanganui decreased by 4.0% year-on-year to $557,000.
“Owner-occupiers were the most active group among buyers, with increasing numbers of first-home buyers returning to the market.
Vendors are adjusting their price expectations based on current market conditions. Open home attendance and buyer enquiries increased, but sales volumes decreased as buyers continue to be impacted by lending restrictions and interest rates. Anticipation of the upcoming election is also a factor as local salespeople watch the market with interest.” (REINZ)
The current median Days to Sell of 62 days is much more than the 10-year average for July which is 42 days. There were 19 weeks of inventory in July 2023 which is 7 weeks less than the same time last year.
In Wellington, median prices decreased by 8.9% year-on-year to $737,000.
“Local salespeople report that first-home buyers continued to be the most active buyer group and vendors continued to set their price expectations to reflect current market conditions.
Open home attendance varied, with few people attending apartments in the CBD, compared with other properties. Local agents predict that due to anticipation of the election and buyer concerns regarding interest rates, the market will continue to be quiet for the next few months.” (REINZ)
The current median Days to Sell of 52 days is much more than the 10-year average for July of 39 days. There were 9 weeks of inventory in July 2023 which is 15 weeks less than the same time last year.
Median prices in Nelson decreased by 7.6% year-on-year to $739,000. In Marlborough, median prices increased slightly by 0.3% year-on-year to $677,000. In Tasman, median prices decreased by 11.3% year-on-year to $710,000.
While all types of buyers were active in Nelson, owner-occupiers were the most active buyer pool in Blenheim. Investor activity decreased, possibly due to the economic climate and anticipation of the election. Some vendors changed their pricing expectations, while others continued to hold out in the hopes of achieving their original sales price.
Local salespeople also reported an increase in first-home buyers and generally positive market sentiment, which has resulted in more offers in some instances. Market sentiment is expected to stay the same for the coming months.” (REINZ)
The current median Days to Sell of 55 days is much more than the 10-year average for July which is 38 days. There were 20 weeks of inventory in July 2023 which is 2 weeks less than the same time last year.
The West Coast’s median prices decreased by 1.5% year-on-year to $330,000.
“July saw the arrival of the winter rain, which has kept some people indoors a little more than in previous months. Regardless, the market was reasonably active for this time of year, with a spurt of sales in the Grey district, steady activity in the Buller district and business as usual in Westland.
Local salespeople reported that listing numbers remained encouraging, as did the economic data showing high earnings, climbing values, and continued low unemployment on the Coast.
Heading into the summer months, local agents are optimistic about the market improving.” (REINZ)
The current median Days to Sell of 28 days is much less than the 10-year average for July which is 84 days. There were 34 weeks of inventory in July 2023 which is 6 weeks more than the same time last year.
In Canterbury, median prices decreased by 2.5% year-on-year to $658,000.
“Owner-occupiers were the most active buyers. First-home buyers were also active in Christchurch but in lower numbers than owner-occupiers. Local salespeople noted a decline in investors in Timaru and Christchurch, due to anticipation of the election.
Most vendors are adjusting their price expectations based on the current market.
Attendance for open homes varied, possibly due to people being away during the school holidays. Auction activity increased although the number of auctions was light, a substantial increase in bookings for August confirmed that this approach continues to be popular.
The market tends to be slow during the winter, but despite factors such as interest rates and the upcoming election, local agents have reported signs of positive, though cautious, market sentiment.” (REINZ)
The current median Days to Sell of 38 days is more than the 10-year average for July which is 35 days. There were 14 weeks of inventory in July 2023 which is 3 weeks less than the same time last year.
Dunedin City - In Dunedin, the median price increased to $625,000 which is the highest level seen since October 2022.
“Open home attendance has been strong for lower to mid-priced properties with first and second-home buyers more active.
Current economic conditions and anticipation of the election continue to impact on the number of properties coming to
market. This factor, coupled with the increase in buyer activity is leading to less choice for buyers and more competition for well-priced properties.”
Queenstown Lakes - Median prices in the Queenstown Lakes District increased by 16.5% year-on-year to $1,400,000.
“First-home buyers and owner-occupiers were the most active buyer pools in the Queenstown Lakes District. Vendors’ expectations remained steady, with prices stabilising as more buyers enter the market. There are good levels of interest at open homes, and auction clearance rates are staying at reasonable levels, showing that it continues to be a good option.
Local agents report that confidence is on the rise among buyers and vendors. Although factors such as interest rates, cost of living, and anticipation for the coming elections continue to affect choices, local agents are hopeful for a positive change in the market following the election and the start of spring.” (REINZ)
The current median Days to Sell of 45 days is more than the 10-year average for July which is 37 days. There were 16 weeks of inventory in July 2023 which is 3 weeks less than the same time last year.
In Southland, median prices increased by 1.2% year-on-year to $430,000.
“Activity was quieter across all buyer groups in July, due to factors such as interest rates, the economic climate, and anticipation of the election.
Some vendors understand that they may need to adjust their asking prices to reflect the market, however, most vendors are choosing to wait for conditions to become more favourable. Local agents have observed that the market is fairly subdued, and they predict that this will continue for some time yet, at least until after the election and the arrival of summer.” (REINZ)
The current median Days to Sell of 51 days is much more than the 10-year average for July which is 38 days. There were 16 weeks of inventory in July 2023 which is 2 weeks less than the same time last year.
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