By continuing, you agree to our terms of use and privacy policy
Instructions on how to reset your password will be sent to the email below.
Your password reset link has been sent. Please check your inbox and follow the instructions provided.
Thursday, 13 October 2022
Across New Zealand, median prices for residential property (excluding sections) increased 2.0% annually, from $795,000 in September 2021 to $811,000 in September 2022. Month-on-month, this represents a 1.4% increase from $800,000 in August.
Jen Baird, Chief Executive at REINZ, comments: “In September, the national median property price increased 2.0% annually. Regionally, we are seeing median price movement gradually slow, with 10 of the 16 regions showing an annual decrease.
“Moving from August to September, there was a 1.4% increase in the median price. However, seven regions saw a monthly decrease. The seasonally adjusted figures show a marginal 0.2% increase nationally. Regionally, while the seasonally adjusted figures show some regions performed better than expected, others underperformed.
“Following an exceptional period of growth last year — spurred by Government stimulus and closed borders seeing Kiwis invest locally — the property market is moderating. Owner occupiers remain a strong buyer pool and agents in some areas report seeing more first home buyers in the market — enticed by easing prices and less competition. However, property prices are still unaffordable to many, particularly in larger hubs, such as Auckland and Wellington,” Baird says.
“Investors remain largely absent — new tax legislation and rising interest rates have created concern amongst this buyer pool, seeing them step back.
“Overall, buyers remained cautious in September. Increasing interest rates, tighter lending criteria, and concerns around the cost of living continue to challenge the pace of the market. In light of last week’s OCR increase of 50 basis points, bringing it to 3.5%, with further increases expected, we expect sentiment to remain cautious — despite a strong labour market.
“Agents also report seeing an increase in open home and auction attendance, which we would expect to see as we move into the warmer months. However, the September data, and reports from agents, indicate that the expected spring uplift is not as strong as anticipated,” Baird observes.
The regions with the greatest annual percentage decrease were:
• Marlborough: Decreased 37.3% annually from 67 to 42
• Manawatu/Whanganui: Decreased 28.9% annually from 311 to 221
• Southland: Decreased 28.4% annually from 155 to 111
• Taranaki: Decreased 26.0% annually from 150 to 111
“Northland’s median price increased 5.2% compared to September 2021, to $710,000. Local salespeople report a resurgence of first home buyers coming into the market — particularly in Whangarei. Owner occupiers remain an active buyer group — particularly retirees looking to upsize or downsize. More vendors are willing to adjust their price expectations and attendance at open homes and auctions is slowly rising.
“Despite a lift in confidence amongst buyers, many are still hesitant to make fast decisions — uncertainty around interest rates, cost of living and whether there will be further price adjustments are the main factors. Heading into the warmer months, Northland salespeople expect out-of-town buyers to show interest in the region — reportedly, enquiry is already on the rise from Aucklanders in areas such as Bream Bay and Waipu.” (REINZ)
The current Days to Sell of 57 days is more than the 10-year average for September which is 50 days. There were 35 weeks of inventory in September 2022 which is 18 weeks more than the same time last year.
“The median price in Auckland continues to ease. September saw Auckland’s median price decrease by 8.3% annually to $1,045,000. Sales counts were 15.8% higher than September last year – while this looks like a turnaround in fortunes for Auckland, we are comparing to a month impacted by a level 4 COVID-19 lockdown.
“In Central and West Auckland, first home buyers were active in the market — many taking advantage of slightly lower prices and less competition. South Auckland saw some investors reenter the market. Attendance at open homes has increased — people seem to be getting plans buy and sell underway before Christmas. Properties that are presented and marketed well are selling faster, and the pace of these sales is expected to pick up in the coming months.” (REINZ)
The current Days to Sell of 45 days is more than the 10-year average for September which is 36 days. There were 35 weeks of inventory in September 2022 which is 24 weeks more than the same time last year.
The median price in Waikato decreased by 0.6% year-onyear to $770,000. Waikato salespeople report an uplift in attendance at open homes coming out of winter. The market is moving at a slower pace, but change is on the horizon as people start to prioritise plans to buy and sell through spring. Developer activity is sparse — there is less confidence in the value of and demand for land. It is also increasingly difficult to secure funding to build.
“Auckland buyers are starting to show more interest in Hamilton and a spring flurry of listings should entice more out-of-town buyers into the market. In Thames, vendors’ price expectations are still above market value, but some are starting to get more realistic as the property sits on the market for longer.
“A lack of rental properties in Taupo is reportedly putting pressure on first home buyer options — some are now deciding to buy a property rather than rent if they have a deposit ready.” (REINZ)
The current Days to Sell of 54 days is much more than the 10-year average for September which is 39 days. There were 32 weeks of inventory in September 2022 which is 23 weeks more than the same time last year.
“In September, Bay of Plenty’s median price decreased by 3.0% annually to $849,000. Investors impacted by tax rules continue to step back from the market. With less competition in the market, first home buyers and owner occupiers were most active. Freshly listed properties are attracting good numbers at open homes. Auction attendance is still subdued. Stock levels remain high — up 139.9% on this time last year, however September 2021 was a COVID-19 lockdown-impacted month.
“Bay of Plenty salespeople feel the spring lift is delayed and hope to see more activity in the coming months.” (REINZ)
The current Days to Sell of 56 days is much more than the 10-year average for September which is 44 days. There were 25 weeks of inventory in September 2022 which is 16 weeks more than the same time last year.
"Gisborne’s population is expected to grow significantly over the next 30 years, and new subdivision developments are taking place to ensure the region is prepared for this type of growth. Oakview Estate is a recent subdivision underway to create a thriving new community. Located northwest of the city, the development is a large flat section with generous section sizes.
Gisborne’s urban boundary is also set to expand. A large sheep and beef grazing farm block in Kaiti will be significantly developed — with a decent area of farmland identified for residential property development put on the market for sale. This type of residential growth is crucial to sustaining Gisborne’s population increase and delivers solutions for home buyers and section buyers." (REINZ)
The current Days to Sell of 39 days is more than the 10-year average for September which is 36 days. There are 12 weeks of inventory in September 2022 which is 2 weeks less than last year.
“The median price in Hawke’s Bay declined annually by 7.8% to $710,000. Sales count also decreased by 19.8% and properties are spending an additional 20 days on the market compared to this time last year.
“However, spring has seen more choice on the market, more buyers looking around and higher attendance at open homes. Vendor expectations are becoming realistic and Hawke’s Bay salespeople report seeing more multiple offers and fewer conditions than in the months prior.
“Supply continues to outweigh demand — inventory levels are 110.4% higher than in September 2021.” (REINZ)
The current Days to Sell of 58 days is much more than the 10-year average for September which is 37 days. There were 18 weeks of inventory in September 2022 which is 8 weeks more than the same time last year.
“The median price in Taranaki saw an annual increase of 17.8% in September 2022 to $630,000. Owner occupiers were the most active buyer group, with most offers subject to the sale of another property. A noticeable increase in buyer enquiry from outside of Taranaki was evident in September. Investors are sparse due to increasing interest rates, uncertainty around median price growth and the regulation of property managers, and a general lack of confidence in the economy.
“Stronger activity is evident in the higher price brackets — some high-end properties have been sold off-market, even without public marketing campaigns. Taranaki salespeople say there has been an increase in appraisals and they are confident that stock levels bode well for summer. Properties were quicker to sell in September — the median days to sell was down nine days compared to this time last year.” (REINZ)
The current Days to Sell of 32 days is less than the 10-year average for September which is 35 days. There were 14 weeks of inventory in September 2022 which is 5 weeks more than the same time last year.
“Manawatu/Whanganui saw its median price decrease by 10.2% year-on-year to $570,000 this September. However, two districts in Manawatu/Whanganui reached record median prices in September: Ruapehu District ($545,000) and Tararua District ($510,000).
“First home buyers are still few and far between, but owner occupiers remain active. Investors are laying low, with the current loan-to-value ratios, rising interest rates and concern about the bright-line test extension causing them to step back from the market.
“Vendors are more understanding that the current economic situation is resulting in less active buyers — they need to be realistic about their price expectations to sell in this market.” (REINZ)
The current Days to Sell of 55 days is less than the 10-year average for September which is 37 days. There were 26 weeks of inventory in September 2022 which is 16 weeks more than the same time last yea
“The median price in the capital decreased 3.5% annually to $820,000 in September 2022. The sales count also decreased by 20.1% year-on-year.
“Whilst first home buyers are looking, owner occupiers who want to upsize currently dominate the buyer pool. Investor numbers are still limited. Many vendors are still not adjusting their expectations, and some are now coming off the market. Wellington salespeople say when spring has sprung, we might see those who took their properties off the market come back with upgrades, ready to give it another go.” (REINZ)
The current Days to Sell of 56 days is much more than the 10-year average for September of 34 days. There were 18 weeks of inventory in September 2022 which is 11 weeks more than the same time last year.
“In September, Nelson’s median price decreased 12.4% annually to $699,000, Marlborough’s decreased by 9.2% to $590,000 and Tasman’s remained unchanged (0.0%) at $860,000.
“Owner occupiers are most active in the Nelson, Marlborough, and Tasman markets, partly because they are less impacted by interest rates and are better able to secure finance. Most activity was seen in the middle-to-high price band. In Nelson, there are now more sections offered for sale than there have been in quite some time, which should attract more buyer enquiry heading into summer.
“In Marlborough, while the number of auctions was low, attendance was higher than it has been. There was an increase in open home attendance, mainly by locals. New apartments appear to be popular with buyers.” (REINZ)
The current Days to Sell of 53 days is much more than the 10-year average for September which is 36 days. There were 23 weeks of inventory in September 2022 which is 11 weeks more than the same time last year.
“The median price in the West Coast increased 30.9% year-on-year to $360,000 this September. The Grey District also reached a record median price of $375,000.
“West Coast salespeople say the rising cost of living is dampening buyers’ enthusiasm. As a result, market activity has been subdued more than usual for a spring month. However, sales are still occurring, and buyer enquiry is steady — they are just taking longer to decide and exploring potential post-settlement costs. With local body elections upon us, there is a sense change is needed and with it, a renewed focus on the benefits of investing in the coast’s lower cost market.” (REINZ)
The current Days to Sell of 56 days is much less than the 10-year average for September which is 86 days. There were 32 weeks of inventory in September 2022 which is 10 weeks more than the same time last year.
“In September, Canterbury’s median price increased by 2.8% annually to $676,000. Two districts reached record median prices: Kaikoura District ($785,000) and Timaru District ($530,000).
“Market activity was steady in September, but a feeling of uncertainty amongst buyers and vendors lingers — influenced by business challenges, rising interest rates, and the economy generally. Buyers still fear of overpaying. First home buyers and owner occupiers were the most active buyer pools.
“Employment opportunities in the Canterbury region are increasing, as is construction — enticing people to move to the region. Cantabrian salespeople say they expect momentum to carry through to Christmas. Several sections settled in September without issue, showing that people remain committed to building new properties and progressing with lifestyle changes.” (REINZ)
The current Days to Sell of 36 days is more than the 10-year average for September which is 33 days. There were 17 weeks of inventory in September 2022 which is 8 weeks more than the same time last year
Dunedin City: “The median house price in Dunedin decreased 4.6% annually to $601,000 in September.
“Availability of finance and tax legislation around investment properties is having a dampening effect on market activity. Vendors understand the declining value and are willing to listen to market appraisals that may be below their initial expectations.
“Owner occupiers were the most active buyer pool — they are seemingly less concerned about decreasing market value compared to first home buyers and investors.” (REINZ)
Queenstown Lakes: “In September, the median price in the Queenstown-Lakes District decreased 7.7% year-on-year to $1,200,000.
“Owner occupier enquiry has increased markedly, with interest from Auckland and areas of the South Island remaining strong. Genuine buyers are attending auctions; however, the numbers are less than they were this time last year. Vendors are now more aware of the challenges buyers face and are prepared to listen to the market.
“Open homes are busy, which shows there is still a good amount of interested buyers, albeit showing less urgency. The Queenstown-Lakes District continues to be seen as a desirable region to live in — particularly for those who want to relish its lifestyle and can work remotely.” (REINZ)
The current Days to Sell of 46 days is much more than the 10-year average for September which is 34 days. There were 14 weeks of inventory in September 2022 which is 5 weeks more than the same time last year.
“Southland’s median price increased 2.8% annually to $450,000 this September. Owner occupiers continue to dominate the buyer pool. Some vendors are still having difficulty adjusting their price expectations. Attendance at open homes has been steady, but buyers are hesitant in their decision process. They are acting with caution and have a fear of overpaying.
“According to local agents, factors having the biggest impact on the market right now are rising interest rates, net migration and strict lending criteria.” (REINZ)
The current Days to Sell of 45 days is much more than the 10-year average for September which is 34 days. There were 13 weeks of inventory in September 2022 which is 1 week more than the same time last year.
From the top of the North through to the deep South, our salespeople are renowned for providing exceptional service because our clients deserve nothing less.
Managing thousands of rental properties throughout provincial New Zealand, our award-winning team saves you time and money, so you can make the most of yours.
With a team of over 850 strong in more than 88 locations throughout provincial New Zealand, a friendly Property Brokers branch is likely to never be too far from where you are.
