Home | July 2024 Market News
Trends we are noticing are:
REINZ Chief Executive Jen Baird said July brought a new wave of buyer activity not typically seen in late winter. While listings continue to increase, the rise in sales volumes has seen the total number of properties for sale in New Zealand fall compared to last month. However, median prices have decreased by 2.2% nationally compared to a year ago, indicating that houses sold at a lower price in July.
The total number of properties sold in New Zealand increased by 14.5% year-on-year, from 5,070 to 5,806, and by 19.7% compared to June 2024, from 4,851 to 5,806.
“Although we have not yet reached the spring season, we are observing early signs of growth in the market not typically associated with this time of year. This can be seen through the seasonally adjusted data, which indicates an increase of 5.4% in national sales compared to last year, which reflects a market performing above anticipated levels,” says Baird
The national median price decreased by 2.2% year-on-year, from $770,000 to $753,000, and decreased by the same amount month-on-month. For NZ, excluding Auckland, the median price decreased 1.5% year-on-year from $680,000 to $670,000. Month-on-month, the median price also decreased by 1.5%.
“There has been downward pressure on prices in most parts of the country this year and sales volumes have been lower than average as the cost of living, concerns around job security and interest rates challenge many people in New Zealand. However, it seems this sentiment is beginning to change. The slight decline in interest rates in July, and a belief that there are more to come, appears to have encouraged buyer activity, as reflected in the increase in sales.”
“The recent 25 basis point reduction in the OCR, and the strong signals of more reductions to come, will bring relief to households and will provide some confidence to buyers to act soon.”
“In July, we saw an increase in sales across the country compared to last year and June 2024. As more listings hit the well-supplied market, buyers are slower to make decisions, extending the average Days to Sell. Despite ongoing economic challenges, early signs suggest potential improvement, indicating favourable conditions in the residential property landscape might be on the horizon.” adds Baird.
Compared to July 2023
Compared to June 2024
The current median Days to Sell of 40 days is more than the 10-year average for July which is 36 days.
Local agents cautiously predict the remainder of the winter market will be steady and have a slightly more positive outlook as spring arrives. They are hopeful that an increase in listings will be brought to market in the coming months.
– Jen Baird, REINZ CEO
National Median Price $753,000
Compared to July 2023 this has decreased by 2.2%
National Median Days to Sell 49
The total number of properties sold in New Zealand increased by 14.5% compared to this time last year, from 5,070 to 5,806, and increased 19.7% compared to June 2024, from 4,851 to 5,806.
Nationally, seasonally adjusted figures show a sales increase of 5.4% compared to July 2023 and an increase of 6.4% compared to June 2024, showing the market is performing better than expected for this time of year.
Listings nationally increased by 31.3% year-on-year from 6,156 to 8,080, continuing a trend since the start of 2024.
Information sourced from REINZ Real Estate Institute New Zealand
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