Median house prices have continued to drop across the country, with properties taking longer to sell in March compared with the same time last year, according to new numbers from the Real Estate Institute of New Zealand (REINZ).
Annually, New Zealand saw the median house price decrease to $775,000 in March, down 12.9% from the same time last year.
The number of homes up for sale nationwide also went up compared with March of last year.
During March, the number of properties for sale was 29,284, up 3625 from the same time in 2022.
This number was up 0.7% compared to February of this year.
For New Zealand, excluding Auckland, houses for sale were also up from 14,923 to 18,742 - an increase of 3819 properties annually. Month-on-month saw an increase of 0.7%.
It means that inventory levels are now returning to the long-term average, which REINZ chief executive Jen Baird saying it’s a good opportunity for buyers to “take advantage of the lower prices and less competition”.
“REINZ members tell us first home buyers are actively returning in the regions with the advantage of choice as investors remain absent,” she said.
Properties are also taking longer to sell, rising to 45 days, up nine days from March 2022 but down 15 from 60 in February 2023.
“While we have seen activity pick up in March, this year’s summer season has been muted. Prices have eased, as we can see, and properties are taking longer to sell,” Baird said.
“Buyers are taking their time, they are negotiating, and some are waiting to see if prices ease further.”
The number of properties sold across Aotearoa has also seen an increase when compared to last year.
March saw 5877 homes sold, a 42.9% increase when compared to February’s 4114. However, this was down 15% year-on-year.
New Zealand, excluding Auckland, saw an annual sale count decrease of 10% but increased by 34.3% compared with February.
“There are clear signs that we are in the lower phase of the cycle, but with nearly 6,000 properties sold, vendors who are motivated to sell are meeting the market with more realistic expectations on time frame and price. Those who need to sell are still selling,” Baird said.
For new listings, the country saw a 17.7% decrease compared with last year, dropping from 11,224 in March 2022 to 9242 this year.
However, there has been a 13.5% increase from 8143 to 9242 compared to February of 2023.
Excluding Auckland, there has been a decrease in new listings year-on-year, dropping from 7,191 to 6,099 (-15.2%).
Auckland's new listings were annually down too, seeing a 22.1% drop from 4033 to 3143.
The only regions in the country to see this increase were Taranaki, rising 9.7%, and Marlborough, rising 18.6%.
Baird attributed this drop to the ongoing effects of extreme weather events like Cyclone Gabrielle and the Auckland Anniversary floods.
“The weather events of the beginning of the year are still being felt in those regions heavily impacted.”
She said the market is likely to remain in this phase as Kiwis wait for inflation to peak and the outcome of this year's election is known.
“The market is likely to remain in this phase as New Zealanders wait for the peak of inflation, a settling in interest rates and some clarity around the possible outcome of the election.
“That said, with the number of listings continuing to ease, we may start to see the supply/demand balance change in some areas.”
The REINZ house price index, which measures the changing value of residential property, showed an annual decrease of 13.1% for the whole country and an 11.5% decrease for New Zealand, excluding Auckland.
SHARE ME