Home | December 2024 Market News
Trends we are noticing are:
As December concluded 2024, the New Zealand property market experienced a relatively quiet month, as indicated by the latest figures from the Real Estate Institute of New Zealand (REINZ).
“December is usually a quiet month for the housing market. For New Zealand, sales count was down 27.4% compared to November 2024 and up 1.8% compared to last year. When we adjust the figures for seasonal effects, we see that both percentage movements are notably less than expected, confirming that December 2024 was a particularly quiet month for residential dwelling sales in New Zealand.” explains Chief Executive Jen Baird.
Sales increased by 1.8% nationwide compared to December 2023, rising from 5,420 to 5,518. In New Zealand, excluding Auckland, sales saw a year-on-year rise of 3.8%, from 3,838 to 3,984.
The median price for New Zealand decreased slightly by 0.6% to $775,000 year-on-year. Month-on-month, the national median price fell 1.8% from $789,000. Excluding Auckland, the median price increased by $10,000 (1.4%) year-on-year, rising from $700,000 to $710,000.
“Sales have risen year-on-year, though we saw a larger than usual drop off in sales this festive season. This suggests that December 2024 was impacted by the way the holidays fell, making it a shorter-than-usual December, with many people choosing to start their holidays early this year. Buyers had ample stock to choose from, and many expected further interest rate reductions, so there was limited urgency in the market in December. Local agents report that first-home buyers and owner-occupiers dominate the market, in some areas benefiting from lower property prices and improving affordability,” added Baird.
Baird observes that while there was a slight year-on-year decline in new listings, several regions experienced significant increases. “Listings dropped significantly compared to last month, showing a clear seasonal slowdown. Fewer new listings are entering the market, but overall inventory is still higher than last year. This means that stock is building up as demand changes.”
Compared to December 2023
Compared to November 2024
The current median Days to Sell of 39 days is more than the 10-year average for December which is 32 days. The median price for Canterbury increased 6.3% year-on-year to $707,000.
“In December, the Canterbury region experienced a diverse mix of buyer types. In Timaru, investors and out-of-town buyers were the most active. In Christchurch, owner-occupiers and investors led activity. Meanwhile, Ashburton saw a variety of active buyers without any particular group standing out.
Vendor expectations align with those of previous months. While some vendors were waiting for price increases, others adjusted to the competitive market. Attendance at open homes varied throughout the region; some locations saw high turnout, while others experienced more activity outside of these events.
Lack of buyer urgency, increased investor enquiry, optimism for 2025 and the current economic climate influenced market sentiment. Local agents are cautiously optimistic that new listings will increase activity, although the challenge will be if the buyer pool can sustain this increase.”
– Jen Baird, REINZ CEO
National Median Price $775,000
Median price down 0.6% compared to December 2023
National Median Days to Sell 42
The total number of properties sold in New Zealand increased by 1.8% compared to December 2023, from 5,420 to 5,518. Sales decreased by 27.4% month-on-month, from 7,599 to 5,518.
Nationally, seasonally adjusted figures show a sales count change of –35.4% compared to last month. This indicates that given the activity in November 2024, December 2024 was much quieter on the sales front than expected.
Year-on-year, national median days to sell rose by six to 42 days; excluding Auckland, it increased by six to 42 days.
Information sourced from REINZ Real Estate Institute New Zealand
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