‘Hopeful better times are ahead’ - Real Estate Institute

Friday, 13 September 2024

There were 5685 house sales nationwide in August, the Real Estate Institute says.

House sales are down, while prices are flatlining, but the Real Estate Institute is “hopeful that better times are still ahead” for the market.

The Institute has released its latest figures, and they showed there were 5685 sales nationwide last month, down 0.7% from 5725 last August, and 5.1% from 5992 in July.

Sales increased annually in eight regions, including Wellington where they were up by 5.4%. But they were down by 6.8% in the country’s biggest market, Auckland, and by 3.1% in Canterbury.

The total number of houses for sale nationally was up 30% to 29,579 in August from 22,750 at the same time last year, but dipped 3.2% from July.

At the same time, the median ‘days to sell’ figure rose eight days to 50 days, from 42 last August.

House prices continue to fall across New Zealand.

Real Estate Institute chief executive Jen Baird said while the overall sales volume declined slightly, several regions reported notable increases in activity, and the data showed a level of stability in the market.

“Despite a marginal 0.6%, or $5000, decrease in national median sale prices year-on-year, we're seeing prices hold steady with a 1.3% increase month-on-month.”

The 0.6% annual decline left the national median price at $765,000 in August, compared to $770,000 last year.

Sale prices in six of the 16 regions were up annually, and they included Wellington, up 3.9% to a median of $790,000, and Canterbury, up 0.5% to $662,000.

But 10 regions recorded price falls, including Auckland where prices were down 4% to a median of $960,000.

The institute’s house price index, which smooths out variations that come from sales figures, was unchanged from July, and down 0.8% on the same time last year. It was 16.7% below the 2021 market peak.

Real Estate Institute chief executive officer Jen Baird says there are signs of a change in market sentiment.

Baird said there were further signs of a change in market sentiment, with agents reporting increased confidence in sellers and buyers, the return of investors, and increased activity.

They attributed the change to the decline in interest rates, she said.

“However, it would be an overstatement to say that we are at a turning point in the market. We merely have our indicators on.

“While there is a rise in optimism and confidence, we are hopeful that better times are still ahead.”

There was an expectation rates would fall further towards the end of this year, providing much-needed relief to property owners and those in a position to buy, which might increase sales volumes, she said.

Quotable Value’s latest figures, which were out on Tuesday, showed that prices had continued to fall, despite the decline in interest rates, but also noted that market activity had increased.

Real estate agents that The Post spoke to said inquiries and attendance at open homes had improved noticeably since the Reserve Bank cut the official cash rate to 5.25% in mid August.