All quiet on house sales front in December

Wednesday, 22 January 2025

There were 5518 house sales nationwide in December, Real Estate Institute figures show.

The housing market ended the year with a whimper rather than a bang after a “larger than usual” drop-off in sales in December, the Real Estate Institute says.

On a national basis, there were 5518 sales in December, an increase of 1.8% from the same time last year, the institute’s latest figures show.

But sales were down 27.4% from 7233 in November, and put a halt to the rising trend seen over October and November.

Real Estate Institute chief executive Jen Baird said December was usually a quiet month for the market, but when the figures were seasonally adjusted both percentage movements were “notably less than expected”.

That confirmed it was a particularly quiet month for sales, with the festive season drop-off larger than usual, she said.

Auckland house prices were down 4.3% annually in December, the institute says.

The national median days to sell also rose to 42 days in December, up six compared with the previous year.

A handful of regions did have double-digit annual increases in sales, with Taranaki up 24.3%, Waikato up 15.9%, Nelson up 13.3%, and Northland up 11.5%.

But in Auckland and Wellington, the country’s biggest markets, there were 1534 and 553 sales in December, which equated to annual decreases of 3% and 1.6% respectively.

In Christchurch, sales were up 4% to 602.

Meanwhile, the national median price fell 0.6% annually to $775,000 at the end of the year. It was down 1.8% from November.

Eleven of 16 regions reported an annual increase in their median prices. The West Coast had the biggest, up 24.3% to $430,000 in December.

In Auckland and Wellington prices fell by 4.3% and 5.4% to regional medians of $1 million and $765,500, while in Christchurch prices inched up 1.4% to a median of $700,000.

The amount of homes for sale is higher than it was last year, the institute’s Jen Baird says.

The institute’s house price index, which smooths out variations that come from sales figures, was down 0.7% from November, and down 1.1% on the same time last year. It was 15.6% below the 2021 market peak.

Baird said buyers had ample stock to choose from, and many expected further interest rate reductions, so there was limited urgency in the market.

The number of homes for sale was up 18.5% annually to 29,478 nationwide, although stock levels were down on the previous month.

“Listings dropped significantly compared to last month, showing a clear seasonal slowdown. Fewer new listings are entering the market, but overall inventory is still higher than last year.”

It meant stock was building up as demand changed, she said.

“Local agents report that first-home buyers and owner-occupiers dominate the market, in some areas benefiting from lower property prices and improving affordability.”

Realestate.co.nz’s latest data also revealed the market was “exceptionally lukewarm”, with new listings slumping to a 17-year low and the national average asking price at its lowest level in four years.

And Quotable Value’s latest data, which was released on Monday, showed the national average house price was 0.3% less in December than it was in January, after a flat quarter to end the year.

QV operations manager James Wilson said there was little evidence to suggest prices would “suddenly go from flat to flat-out in the immediate future”.