Huge surge in house sales in ‘active’ February market

Thursday, 14 March 2024

New Zealand’s housing market bounced back from a slow start to the year with a strong increase in sales last month, the Real Estate Institute says.

There were 5693 sales nationwide in February, an 81.8% increase from 3132 in January, the institute’s latest figures showed.

On an annual basis, sales were up 37.9% from 4129 at the same time last year.

Of the 16 regions monitored, sales were up by more than 20% annually in 14, and only West Coast and Taranaki had an annual decrease in sales.

In Auckland there were 1685 sales, an increase of 98.5% on January and of 52.9% annually.

It took a day longer to sell a home in February than in January, with the median days-to-sell figure inching up to 51 from 50, but it was nine days less than at the same time last year.

The figures also showed listings in February were up 60.4% on January and 44.8% annually, and that left the total number of homes for sale nationwide at 31,424, up 8.1% on the same time last year.

Real Estate Institute chief executive Jen Baird said the substantial rise in listings nationally indicated heightened activity in the housing market.

The increase in stock levels had resulted in a growing inventory of available properties for sale, and was providing options for buyers, she said.

“Coupled with median sale price growth in some regions, agents are seeing more investors and first-home buyers out there at open homes.”

House prices were up nationally, with a 3.1% annual increase to a median of $790,000 in February from $766,000 at the same time last year. The national median was also up 3.9% on January.

Nine of the 16 regions had annual price increases, and the median prices in Northland, Gisborne, Nelson and Canterbury rose by over 5%.

In the Auckland region prices were up 2.6% annually to a median of $1.02 million, while the Wellington region had a price increase of 0.6% to a median of $800,000.

The institute’s house price index, which smooths out variations that come from sales figures, was up 1.1% from January and 3.2% on the same time last year. It was now 13.5% below the 2021 market peak.

Baird said the data painted a picture of a more active market, characterised by increasing listings, robust sales activity, expanding stock levels, and growth in prices.

“We are looking at the back of the Government’s 100-day plan, the changes to the bright line test back to two years and the latest reintroduction of interest deductibility on investment properties for landlords.

“With a significant increase in listings, the rise in the total number of properties sold, and an increase in the median sale price, some buyers are holding out for the ‘right’ property while others are getting ‘into the market’ before competition rises as investors return.”

That buoyancy was a positive sign that had not been seen for a while, she said.

The Real Estate Institute data contrasted with Quotable Value’s latest figures, released on Tuesday, which showed house price increases flattening and pointed to a fall in buyer demand as a reason.