"The property ended the year on a positive note," CEO says
REINZ has reported a positive surge in property market activity in December, characterised by heightened sales, increased median prices, reduced days to sell, and an overall boost in confidence compared to the same period last year.
REINZ CEO Jen Baird (pictured above) attributed the improvement to stabilised interest rates, detailed government plans, and the active phase in the property cycle.
“The December figures showed a boost in activity in the market compared to a year earlier,” Baird said. “We’ve been observing slow and steady improvement recently and we round out 2023 with continued improvement in sales activity in the market.”
Property sales
Year-on-year, the number of properties sold in New Zealand surged by 14.1%, rising from 4,509 to 5,145, compared to December 2022. However, month-on-month sales experienced a 20.8% decline, dropping from 6,493 in November to 5,145 in December, aligning with the usual dip in activity during the holiday season.
Similarly, New Zealand, excluding Auckland, saw a comparable trend, with a 17% year-on-year increase (from 3,135 to 3,667) and a 16.7% month-on-month decrease (from 4,401 to 3,667), in line with anticipated holiday-related slowdowns.
The REINZ data indicated that nearly every region recorded year-on-year growth in the number of properties sold in December. Tasman took the lead with the most substantial increase at +47.8%, followed by Gisborne (+35.7%) and Northland (+31.3%). Taranaki was the sole region experiencing a year-on-year decrease, with a decline of -8% in the number of properties sold.
Median sale prices
Median sale prices exhibited mixed trends, with month-on-month increases observed in fewer than half of the regions. Notable standouts were Nelson and Taranaki. Nelson’s median price rose by 10.5% (from $650,000 to $718,500), while Taranaki experienced a 10.3% increase (from $580,000 to $640,000) month-on-month.
Year-on-year, median prices remained steady, showing a slight decrease of 0.7% in the national median sale price, which now stands at $779,830. The median price for New Zealand, excluding Auckland, remained unchanged both year-on-year and month-on-month, holding steady at $700,000.
Year-on-year, nine out of the 16 regions witnessed an increase in their median sale prices. Tasman and West Coast experienced the highest growth at 5%, followed by Nelson (4.1%) and Taranaki (3.2%). This marks a significant change from November when only Canterbury recorded a year-on-year median price increase.
“Many local agents are reporting signs of growing market confidence and activity levels now that the election is over and the new government has begun releasing details about its plans, and interest rates have stabilised,” Baird said.
“While some buyers and sellers are waiting to see what the new year holds, it’s clear that there’s a growing understanding that the bottom of the market is behind us with annual median prices starting to lift in many regions – it's clear more buyers and sellers feel that now’s the time to act.”
Auction numbers
REINZ observed a significant uptick in auction popularity, comprising 14% of sales in December compared to 11.4% in the same month of the previous year. The property market is showing increased agility, with the national median days to sell decreasing to 36 days.
“The market is moving a little more quickly,” Baird said. “The national median days to sell was 36 days, decreasing by two days compared to last month, and by four days year-on-year compared with December 2022.
Property listings
Nationwide, new listings dropped by 6.4%, falling from 5,157 to 4,828 listings year-on-year. Excluding Auckland, new listings for New Zealand experienced a 4% decrease, declining from 3,581 to 3,436 listings year-on-year.
While new listings declined year-on-year, local agents reported strong levels of enquiry from potential sellers, Baird said.
The total number of properties available for sale at the end of December decreased to 24,867, down 4.6% (1,190 properties) from the previous year's 26,057 and lower by 11.2% (3,148 properties) compared to 28,014 from the month before. In New Zealand, excluding Auckland, inventory also saw a decline, dropping by 2.6% (418 properties) from 16,349 year-on-year and 10% (1,761 properties) from the month before at 17,692.
A positive close to 2023
“While there is some regional variation, it’s clear that property ended the year on a positive note,” Baird said. “As well as the lift in year-on-year measures such as sales and drop in days to sell, the Housing Price Index is 0.5% higher compared with a year ago, and that provides a clear signal that the market is moving into more positive territory.”
For more information, visit the REINZ website. You can also download the full Monthly Property Report and House Price Index (HPI) Report.
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