The start of the year is always slow in the New Zealand property market. The REINZ data for January shows the Auckland market was affected by the significantly bad weather events, with the whole country recording the least number of sales in 40 years. There was a total of 2,759 sales across the country for the month; a 38.7% decrease on the year before.
What we have seen over the last 4 months, is a stalemate between buyers and sellers. The economic conditions for New Zealand are generally strong (employment is good, exports are strong, immigration is positive), meaning most people looking to sell don't have to sell. Buyers continue to read the media reports on a weak market and push for low prices, so the market has been in a holding pattern. This means there has also been a decrease in the number of people putting their home on the market. The REINZ stats for January show a decline in total new listings of 16% compared to January in 2022 and the median number of days to sell a home for January 2023 was 53; 16 days longer compared to January 2022.
Median house prices across the country also continued to drop, with the median sale price for January sitting on $762,500, a decrease of 13.3% compared to a year ago. Auckland’s median house price has gone under $1 million, to $940,000 in January for the first time in 2 years.
It is likely that the slow market and low sales will continue in February given the recent weather events and Cyclone Gabrielle’s impact on the country, but what we do know is that the market always bounces back. A drop in new listings means we will see a reduction in stock which will stimulate demand. With respect to sales numbers, we are at the bottom of the dip, and there are indications that activity is picking up and sales will start to increase in coming months.
CEO of Professionals, Shaun Taylor says, “if you really want to know what's happening in your local property market, talk to one of our team; they have their finger on the pulse and know which properties sell, and for how much before the stats hit REINZ. What our business owners and agents are telling me is that we are starting to see more people at open homes, more enquiries coming through the website, and there are multiple offers on properties. This activity is generally an early indication that the market is about to turn”.
Here are 6 things you need to know about the property market at the moment:
The market is always changing and while our thoughts are with those that have been significantly impacted by Cyclone Gabrielle and as the country rallies around them, the economic impacts won't truly be known for some time. If you are thinking of entering the property market the first person to talk to is a trusted Professionals team. Shaun Taylor says, “if I need to know what's happening in the market right now, I talk to our best agents and business owners. They are passionate about their local markets, vendors and buyers, and truly want the best outcomes for everyone involved. This means they know what is happening in the market which, at times like these, can turn on a dime. My best advice to anyone looking to buy and sell at the moment is to talk to your local agent first. Check out the value of your home on our e-valuation tool or have a market appraisal done on your home so you have an understanding of its value in this market, and then look to your agent to get your home market ready and maximise its value.”