Home | August 2024 Market News
Trends we are noticing are:
The Real Estate Institute of New Zealand (REINZ) August 2024 figures show signs of increased confidence, optimism and activity compared to the previous year. While the overall sales volume slightly declined, several regions reported notable increases in activity, and year-on-year listing numbers continue to rise.
REINZ Chief Executive Jen Baird said August provided a sense of confidence and positivity to the property market. “August data shows a level of stability in the market. Despite a marginal 0.6% (or $5,000) decrease in national median prices year-on year, we’re seeing prices hold steady with a 1.3% increase month-on-month,” says Baird.
Compared to August 2023, the total number of properties sold nationally decreased by 0.7% (just 40 properties), from 5,725 to 5,685, and decreased by 5.1% month-on-month, from 5,992 to 5,685.
The national median price decreased by 0.6% year-on-year, from $770,000 to $765,000, and increased by 1.3% month-on-month. For New Zealand, excluding Auckland, the median price increased 1.6% year-on-year from $670,000 to $681,000. Month-on-month, the median price increased by 1.8%.
“This month, we saw further signs of a change in market sentiment, with local agents reporting increased confidence in vendors and purchasers, the return of investors, and increased activity, particularly at open homes over the last two weeks of August. They attribute this change to the decline in interest rates. However, it would be an overstatement to say that we are at a turning point in the market – we merely have our indicators on. While there is a rise in optimism and confidence, we are hopeful that better times are still ahead,” adds Baird.
The national inventory level increased by 30.0% (+6,830) in August, from 22,750 to 29,579 year-on-year and decreased by 3.2% (-977) from 30,556 month-on-month. For New Zealand ex Auckland, inventory levels increased 30.8% (+4,348) year-on-year from 14,099 to 18,447 and decreased 2.4% (-460) compared to June 2024.
“We continue to see an increase in the average number of properties listed. Although the inventory is down slightly compared to last month, the volume of properties for sale continues to provide a lot of choice for buyers,” adds Baird.
“There is an expectation that rates will fall further towards the end of this year, providing the much-needed relief to property owners and those in the position to buy, which may increase sales volumes nationwide,” comments Baird.
Compared to August 2023
Compared to July 2024
The current median Days to Sell of 41 days is more than the 10-year average for August which is 35 days.
Canterbury’s median price increased 0.5% year-on-year to $662,000. “Owner-occupiers and first home buyers were the most active buyer groups, with early interest from investors. Most vendor expectations are realistic, although, with the decline in interest rates, some are hopeful of price increases. Attendance at open homes varied across the region, with newer listings attracting higher numbers.
Market sentiment was influenced by factors such as decreased interest rates, early signs of spring-like activity, economic progress, and general optimism. Local salespeople report a positive shift, but that doesn’t mean a sudden change in the market, indicating it could take some time.”
– Jen Baird, REINZ CEO
National Median Price $765,000
Compared to August 2023 this has decreased by 0.6%
National Median Days to Sell 50
The total number of properties sold in New Zealand decreased by 0.7% compared to August 2023, from 5,725 to 5,685, and decreased by 5.1% compared to July 2024, from 5,992 to 5,685.
Nationally, seasonally adjusted figures show a sales decrease of 0.5% compared to August 2023 and a decrease of 2.4% compared to July 2024.
Listings nationally increased by 8.1% year-on-year from 7,444 to 8,048, continuing a trend since the start of 2024.
Information sourced from REINZ Real Estate Institute New Zealand
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