By the numbers: What’s the housing market doing?

Tuesday, 14 May 2024

House sales in April were up on the same time last year, but market activity remains well below the long-term average, the Real Estate Institute says.

It’s a familiar story, with recent data from CoreLogic and QV revealing a quiet market.

Economists have said the market is sluggish and that its recovery from the post-boom downturn is “underwhelming”.

Now, the institute has released its latest data, and here’s what its numbers tell us.

25.3%

The number of properties sold nationwide was up 25.3% annually in April, from 4438 to 5559. Every region except the West Coast saw an annual increase in sales activity.

But the April figure was a decrease of 17.3% from March, and the institute’s chief executive, Jen Baird, said sales figures at the same time last year were lower due to weather events, such as Cyclone Gabrielle.

“The April sales figures reflect greater demand, after the impacts of weather events in early 2023. But sales figures are still below long-term averages in many regions.”

43

Another sign of improved sales activity was that the time it takes to sell a property reduced. In April it took a median of 43 days for properties to sell, as compared with 46 days a year ago.

At the start of this year, it took a median of 50 days to sell.

But some regions recorded the highest median days to sell for an April month in years.

Auckland’s figure of 44 was its highest since 2001. It was above the region’s 10-year average for April, which was 37 days.

Manawatu-Whanganui’s figure was its highest since 2015 and the West Coast’s was the highest since 2019.

2.8%

The institute’s house price index, which smooths out variations that come from sales figures, was down 0.8% nationwide from March, but up 2.8% on the same time last year.

The average annual growth in the index over the past five years has been 5.8% a year, and it is currently 15.1% below the peak of the market reached in late 2021.

By this measure, Christchurch had the biggest increase in prices, up 4.7% annually in the index.

$790,000

The national median sale price was up 1.3% annually to $790,000 from $780,000, but it dropped from $800,000 in March.

Baird said the national median had now increased annually for the third consecutive month, but the median price for New Zealand excluding Auckland had not changed compared with April 2023.

“This may suggest that, with more properties to choose from, some buyers have less competition from other buyers, and some are more comfortable taking a stronger approach to their negotiation.”

There seemed to be plenty of buyer interest, with many seeing the current price levels as attractive, but some were taking their time before making a decision, she said.

“Similarly, some vendors are selling now and are open to meeting the market with their pricing, while others prefer to wait.

“Nationally, prices are still below their peaks from a few years ago.”

19.8%

West Coast and Marlborough had the biggest annual price increases, up 19.8% and 13.4% to medians of $430,000 and $700,000, respectively.

Prices in Auckland, the country’s biggest market, were up 6.1% annually to a median of $1.05 million, while Taranaki, Southland, and Tasman also had price growth of more than 6%.

In contrast, prices in Hawkes’ Bay fell by 12% annually to a median of $660,000. Interest rates, challenges getting finance approved, and the cost of living were impacting on market sentiment, Baird said.

9636

The number of new properties being put up for sale nationwide was up 34.9% annually in April, to 9636 from 7142 at the same time last year.

Thirteen of 15 regions saw year-on-year increases in new listings, with nine - including Auckland and Wellington - recording increases of over 25%.

National stock levels also increased in April, and there were 18.1% more properties on the market compared to the same time last year.