Home | January 2024 Market News
Trends we are noticing are:
January is usually a slower month for the completion of sales in New Zealand and this year is no exception with 2,995 properties being sold. While this is 4.9% more than January 2023, the increase in listings is a stronger indicator that the market continues to pick up. Listings increased by 10.4% nationally and 5.4% for New Zealand, excluding Auckland, year-on-year. The biggest increases in listings compared with the previous month were seen in Wellington at 148%, followed by Gisborne at 84%, Canterbury at 81%, and Auckland at 76.8%.
The national median sale price has slightly decreased from December 2023, down 2.5% from $779,830 to $760,000. Year-on-year, there is a slight decrease in the national median price by 0.7% from $765,000 to $760,000, while New Zealand, excluding Auckland, is down by 2.1% month-on-month (from $700,000 to $685,000) and up year-on-year by 0.8% (from $680,000 to $685,000).
Despite the wave of listings favouring buyers, the challenges of last year, including the cost of living, inflation, interest rate changes, and government reforms, mean some buyers remain cautious. However, most regions are reporting more buyer activity across the board, with some seeing a particular surge in first-home buyer interest. Vendors are also being confident but realistic with prices as activity increases over the summer months. This is likely to resolve in inventory moving over the coming more active months in the year.
One area of significant change that has widespread support across the property sector is the Residential Property Managers Bill. This regulation provides much-needed structure to a sector that collects rent from 670,000 tenants and manages billions of dollars in assets for everyday New Zealanders. As disincentives are removed, this is important regulation to monitor as it may change market activity, inviting investors back or to refresh their portfolios, making more housing available for those who are not in the market.
2024 is shaping up to deliver a series of changes and shifts in dynamics for the market. The property sector is expecting the new government to make good on its promises to reduce the bright line back to two years and reintroduce interest deductibility on investment properties, changing the dynamics of the property market again.
– Jen Baird, REINZ CEO
Compared to January 2023
Compared to December 2023
Canterbury’s median price increased by 1.0% year-on-year to $649,000.
Owner-occupiers continue to be the most active buyers in Ashburton and Christchurch. There was also a surge in activity from first-home buyers in Timaru and Christchurch. Most vendors continue to adjust their asking prices based on market conditions but are hoping for better prices.
The new government, interest rates, inflation, and summer have all had a substantial impact on the market. Overall, agents are seeing more favourable market sentiments and anticipate increased business as listing numbers rise and the economy stabilises.
– Jan Baird, REINZ CEO
National Median Price $760,000 Compared to January 2023 this has decreased by 0.7% National Median Days to Sell 50
The national median sale price shifted slightly month-on-month, down 2.5% from $779,830 to $760,000. Year-on-year, there is a slight decrease in the national median price of 0.7% from $765,000 to $760,000.
The total number of properties sold across New Zealand in January 2024 increased 4.9% year-on-year to 2,995 and decreased 44.1% month-on-month from 5,357.
Month-on-month listings increased by 52.2% nationally.
Median Days to Sell increased by 14 days month-on-month and decreased by 4 days year-on-year.
Information sourced from REINZ Real Estate Institute New Zealand
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