It’s a buyers market with longest stretch of price stability in 17 years

Wednesday, 2 October 2024

Wellington’s home-building sector is facing a slump, with uncertainty around seismic building standards and a sharp post-pandemic fall in house prices contributing to the slowdown. Local authorities are being urged to address the concerns.

In September, the national average asking price remained static, increasing just 0.2% year- on-year.

This gave buyers and sellers a degree of market predictability.

Data also showed more people from overseas were attempting to get on the Kiwi property ladder.

The national average asking prices for properties remain so flat that it’s breaking records.

According to realestate.co.nz’s NZ Property Report for September, this was the longest stretch of price stability since records began 17 years ago.

“For almost two years, our national average asking price has hovered between $860,000 and $890,000,” realestate.co.nz spokesperson Vanessa Williams said.

It really is a buyer’s market with property prices experiencing unprecedented stability, according to realestate.co.nz

“We’ve never seen prices remain flat for this long.”

In September, the national average asking price remained static, increasing just 0.2% year- on-year and 2.7% month-on-month, which marked 20 months of flat asking prices, the longest stretch of stability on record, which was unprecedented.

“Property market prices started flattening out in January 2023, when the national average asking price was $879,530. Almost two years later, we are sitting at $870,110.”

This gave buyers and sellers a “rare degree of market predictability”.

Realestate.co.nz spokesperson Vanessa Williams.

“Buyers can confidently enter the market, knowing prices have remained steady, while sellers can adjust their expectations based on these consistent trends,” Williams said.

Stock levels remained high during September with the total number of properties for sale surpassing 30,000 after a slight dip in August. This is the first time stock levels had exceeded 30,000 during the month of September since 2014.

“With so many properties on the market, buyers have plenty of options as we head into the warmer months. If confidence continues to grow, we may start seeing stock levels decline as more buyers take advantage of current opportunities,” Williams said.

New listings also surged in September, rising 18.7% year-on-year and 15.3% month-on-month nationally.

This marked the highest level of September new listings in three years, highlighting renewed seller confidence, Williams said.

Regions with the most significant year-on-year increases include Gisborne (50.0%), Coromandel (40.2%), Central Otago/Lakes District (40.9%), Wellington (36.1%), Otago (34.1%), and Central North Island (32.5%).

“We typically see an increase in listings as warmer weather encourages sellers to put their homes on the market.

“However, since 2021, spring has had a slower start, with more subdued listing levels during September. This year, we’re seeing a return to more typical spring activity, approaching 10,000 new listings compared to an average of around 7000 in previous years.”

Data also showed more people from overseas were attempting to get on the Kiwi property ladder.

Total active users on realestate.co.nz were at an all-time high during September, up 28% on this time last year with the site experiencing the largest international audience in more than 12 months, with searches from Australia up 35%, the United States up 16%, and the UK up 25% year-on-year.