New Zealand's property market is bouncing back, with supply levels hitting an eight-year high nationwide, realestate.co.nz says.
According to its latest New Zealand Property report, released today, there were 11,788 new listings on the market in February — a 44.8% increase across the country compared to the same time last year.
Realestate.co.nz said this influx was a "return to health" after new listings hit an all-time low in February 2023 — the lowest February since realestate.co.nz records began in 2007.
New listings were also up across all 19 regions, with the most significant increases seen in Northland with 508 (up 94.6%); Coromandel with 126 (up 85.3%); Wellington with 927 (up 76.6%), Hawke's Bay with 328 (up 75.4%), and Auckland with 4519 (up 64.0%).
It also led to a gentle rise in prices last month, "suggesting that while the market is starting to warm up, a more sustainable market is in play", the report read.
Realestate.co.nz spokesperson Vanessa Williams said the recovery is evidence of a "confident market" which is markedly different from the one seen at the same time last year.
"Last February saw us dealing with a very different summer as Kiwis grappled with the effects of back-to-back weather events," Williams said.
"In a typical February month, we would see around 11,000 new listings come onto the market. Seeing numbers back in the 'normal' range tells us that Kiwis are becoming more positive about listing their properties for sale. This is great news for buyers, offering them a wider array of options."
Options aplenty for keen homebuyers
February saw the highest number of total properties on the market in almost a decade.
Housing stock rose to 31,424 last month — an increase of 8.1% year-on-year.
The last time supply had reached over 30,000 was in November 2015.
Stock levels rose in all but two regions year-on-year to help replenish the market.
Gisborne was down 32.4% to reach record-low stock for any February since records began. Otago was also down 4.2%.
Coromandel and Northland saw the largest increases in housing stock, with levels rising 41.5% and 27.2%, respectively.
The high stock levels not only give buyers greater choice, but also more time to decide.
The number of people searching per realestate.co.nz listing was up 10.1% in February compared to the same time last year.
Engagement — including saving properties and inquiries — was also up 22.6% nationally. The highest increase in engagement was in Wellington (up 63.6%) and Wairarapa (up 53.5%).
House prices on the rise
While the higher number of property listings has led to more options for potential buyers, it's also been met with a gentle price increase.
The nationwide asking price rose to $899,756 last month — up 3.0% on the same time last year and 1.2% from January.
But don't fret — Williams said the small lift is indicative of sustainable market health.
"This slight increase in asking price, alongside an increase in properties coming to market, suggests buyers are being more considered with purchase time," Williams said.
The relative stability of the market across the country has also seen several regions set new records.
In Marlborough, the average asking price rose 4.3% year-on-year to reach $807,619 last month, compared with $774,442 in February 2023.
In Wairarapa, the average asking price rose to $791,985 last month, compared with $753,228 the same time last year — up 5.1% year-on-year.
Central Otago/Lakes District commanded an average asking price of $1,607,185 last month, compared with $1,414,498 last February — up 13.6% year-on-year.
The West Coast, meanwhile, saw the average asking price rise 5.8% year-on-year to reach $491,336 last month, compared with $464,369 in February 2023.
Hawke's Bay was also on the rebound after a challenging year of weather events, with asking prices returning to above $800,000.
Central Otago/Lakes District was the stand-out performer, maintaining an average asking price above $1.6 million in February after reaching an all-time national high the previous month.
"After the highs and lows of the past few years, we are now seeing signs across the board that the property market is recovering, which is good news for those looking to buy or sell across the motu."
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