New Zealand house sales up 10% annually

Tuesday, 17 December 2024

More life is returning to the housing market with sales on the rise, and increased buyer interest, the Real Estate Institute says.

There were 7233 sales nationwide in November, an increase of 3.2% from 7006 in October, the institute’s latest figures showed.

But on an annual basis, sales were up 10.8% from 6530 at the same time last year.

Sales increased annually in 13 of the 16 regions monitored, and only Nelson, Tasman and Southland had an annual decrease in sales.

In Wellington there were 852 sales in November, a huge increase of 26.2% on October and of 32.3% annually.

Christchurch sales were also up annually (by 9.7%) and monthly (by 4.7%) to 772, while in Auckland there were 2239 sales, an increase of 6.3% annually but a 1.5% decline on the previous month.

Real Estate Institute chief executive Jen Baird said there was a shift in market sentiment nationwide in November, and there was more life in the market.

Buyers were showing increased interest, spurred by the recent reduction in the official cash rate (OCR), prompting more sales nationwide, she said.

“After a challenging year, recent data indicates promising signs of increased activity, which we hope will continue into 2025.

“This is a good time to make transactions, as prices remain stable, and interest rates decrease.”

The national median price remained flat at $795,000, unchanged from last month and the same time last year.

But house prices around the regions were a mixed bag. Nine of the 16 regions recorded annual price rises, and Northland, Gisborne, Hawkes Bay, Otago and Southland were up by over 5%.

In the other seven regions prices were flat or fell slightly, and the biggest decline was West Coast where the median was down 3.7% to $385,000.

In the Auckland and Wellington regions prices were down 1.2% and 1.8% annually to medians of $1.03 million and $773,000 respectively.

Christchurch’s median price was down 2.1% annually to $690,000.

The institute’s house price index, which smooths out variations that come from sales figures, was up 0.6% from October, but down 1.4% on the same time last year. It was 14.9% below the 2021 market peak.

Listings increased 3.9% annually to 11,129 in November, and that left the total number of homes for sale nationwide at 33,984, up 21.3% on the same time last year.

But the institute’s figures also showed that for the first time this year the number of listings decreased on a monthly basis, down 3.8% from October.

Baird said it was the first month in a while they had seen an increase in demand and a slight reduction in new properties coming to market.

“We expect the summer months to bring the usual upswing in sales activity across the market, this year with both buyers and sellers feeling a little more confident.”

Recent data from Realestate.co.nz and Barfoot & Thompson also indicated a change of sentiment in the market, while 20% of respondents to ASB’s latest housing confidence survey said now was a good time to buy, up from 8% in July.

But responses to economist Tony Alexander’s latest survey of real estate agents suggested while buyers were eyeing the market again, they did not feel the need for rapid decision making.

And CoreLogic chief property economist Kelvin Davidson had said while he was cautiously optimistic about the outlook for the market, conflicting forces would continue to be at play in the new year.

“While 2025 brings some positive sentiment, it’s unlikely to deliver sharp gains, but there is likely to be a steadier path ahead for buyers and sellers alike.”