Market is subdued, despite higher sales counts nationally - REINZ stats April 2024

The April 2024 sales figures reflect greater demand, after the impacts of weather events in early 2023.

REINZ Chief Executive Jen Baird says that the market is subdued, despite nationally seeing higher sales counts, properties selling more quickly, increased stock levels, and more listings, compared to a year ago. These increases are a contrast with the much lower measures seen in April 2023, following the impacts of weather events like cyclones Hale and Gabrielle, but are below the average for this time of year longer-term.

The total number of properties sold in New Zealand decreased by 17.3% compared to March 2024, from 6,721 to 5,559, and increased by 25.3% year-on-year, from 4,438 to 5,559. All but one region saw increased year-on-year sales activity, the exception being West Coast, where sales decreased by 5.3% compared with April 2023. “Sales activity lifted in 15 of 16 regions, compared with April 2023. Ten of those regions recorded increases of over 20%, with Marlborough (45.8%) recording the highest year-on-year lift in sales. The April 2024 sales figures reflect greater demand, after the impacts of weather events in early 2023. However, sales figures are still below long-term averages in many regions." says Baird.

Nationally, median Days to Sell decreased by 3 days, from 46 to 43 days, compared to a year ago. For NZ, excluding Auckland, median Days to Sell decreased by 7 days year-on-year, from 48 to 41 days. In 13 of 16 regions, median Days to Sell were lower compared with April 2023. The biggest decreases were in Tasman (down 29 days), Marlborough (down 18 days), Northland (down 17 days), and Wellington (down 11 days). In contrast, some regions recorded the highest median days to sell for several years: Auckland had the highest days to sell in the month of April since 2001, Manawatu-Whanganui since 2015, and West Coast since 2019.

The national median sale price increased by 1.3% year-on-year, from $780,000 to $790,000, and decreased by 1.3% compared with March 2024, from $800,000 to $790,000. For NZ excluding Auckland, the median price of $700,000 was the same as for April 2023; month-on-month, it decreased by 1.7%, from $712,000 to $700,000.

“The median national sale price has now increased year-on-year for the third consecutive month, and sales are picking up as well. There are vendors who will need to sell and don’t want to wait any more, and these vendors will need to set realistic expectations, both for price and the time needed to sell their property. The median price for NZ excluding Auckland hasn’t changed compared with April 2023. This may suggest that, with more properties to choose from, some buyers have less competition from other buyers, and some are more comfortable taking a stronger approach to their negotiation,” she says.

While the April data shows more activity in the housing market, with year-on-year increases in sales, listings, stock levels, and median prices, it’s clear that economic factors are creating headwinds. “Activity is picking up for the housing market as we move into autumn, with sales lifting and more choices for buyers. However, the likelihood of interest rates staying at these elevated levels for a while, and more talk of job losses, continues to lead to caution among some buyers.

There seems to be plenty of buyer interest, with many seeing the current price levels as attractive, but some are taking their time before making a decision. Similarly, some vendors are selling now and are open to meeting the market with their pricing, while others prefer to wait. Nationally, prices are still below their peaks from a few years ago and sales are still lower than long-term averages. Although the cooler months traditionally lead to activity slowing down, demand for properties may increase as investors return to the market in response to upcoming changes to the bright line test and the reintroduction of interest deductibility on investment properties. With this in mind, buyers may want to act now,” adds Baird.

Regional highlights

- In 15 of 16 regions, the year-on-year sales count was higher, and 10 of those regions increased by over 20%. Marlborough recorded the greatest increase in year-on-year sales count, up by 45.8%.

- 10 of 16 regions had year-on-year price increases. West Coast had the greatest increase, up by 19.8% compared with April 2023.

- 13 of 15 regions saw year-on-year increases in new listings, with nine of those regions recording increases of over 25%. Wellington had the biggest increase, up by 318 listings year-on-year (69.0%).  Other notable increases in listings were Auckland by 1,034 listings (41.1%), Waikato by 209 (36.8%), Bay of Plenty by 179 (39.7%), Manawatu-Whanganui by 93 (29.8%), Taranaki by 65 (39.6%), Marlborough by 35 (46.1%), Canterbury by 337 (32.5%), and Otago by 107 (55.2%).

- Southland is the top-ranked region for HPI year-on-year movement this month. Otago is second and Bay of Plenty is third.

Regional Analysis - Northland

The median price for Northland decreased 1.4% year-on-year to $690,000.

“Local agents report that first-home buyers and owner occupiers remained the prominent buyer groups across the region. Investors and developer enquiries are also increasing in Whangarei.

Most vendors are willing to meet the market’s expectations, while some are taking longer to adjust. Open home attendance was variable, with the lower-priced listings seeing a lot of activity.

The number of auctions increased compared to this time last year, but sales through this method remained light. Local agents predict that activity will remain consistent but could shift later in the year depending on how investors react to upcoming policy changes.” (REINZ)

The current median Days to Sell of 56 days is more than the 10-year average for April which is 51 days. There were 53 weeks of inventory in April 2024 which is 13 weeks more than the same time last year.

Regional Analysis - Auckland

In Auckland, median prices increased by 6.1% year-on-year to $1,050,000.

“Owner-occupiers looking to upsize and first-home buyers remained the most prominent buyer groups across Auckland, with developer enquiries also increasing in South Auckland.

While some vendors who have been on the market for some time are adjusting their expectations, most vendors who have recently listed are hopeful of achieving their original price. Open home attendance numbers varied across the region. Auction activity has increased in some areas, with most properties selling after the auction rather than in the auction room.

Market sentiment was influenced by factors such as interest rates, bank lending criteria, and vendor expectations. Local agents remain cautiously optimistic that activity may lift later in the year, depending on changes in rental rules, tax incentives, and interest rates.” (REINZ)

The current median Days to Sell of 44 days is more than the 10-year average for April which is 37 days. There were 33 weeks of inventory in April 2024 which is the same as the same time last year.

Regional Analysis - Waikato

The median price in Waikato is the same as in April 2023, at $745,000.

“Owner-occupiers and first-home buyers were the most active buyer groups across the region. Local agents report that many vendors are prepared to meet market expectations. Open home attendance levels were generally steady, with reports of lower attendance in Thames/ Coromandel.

Auction room activity varied across the region, with local agents seeing more bidders and sales under the hammer in Hamilton and Taupo.

While some buyers seem to be taking time before making a decision, due to the large number of listings available in the market, local agents are hopeful that market activity will increase in the coming months when investors return.” (REINZ)

The current median Days to Sell of 46 days is more than the 10-year average for April which is 39 days. There were 27 weeks of inventory in April 2024 which is 1 week more than the same time last year.

Regional Analysis - Bay of Plenty

Bay of Plenty’s median price is the same as in April 2023, at $820,000.

“Owner-occupiers and first-home buyers continue to be Tauranga’s most active buyer group in April, with investor and owner-occupier enquiries increasing in Rotorua. Open home attendance varied from steady in some areas and slightly reduced in others, with the school holidays impacting numbers. Auction activity in Tauranga has decreased slightly, with a good number of auctions but low attendance.

Factors such as high listings, the cost of living, and job uncertainty significantly impacted market sentiment. Local agents are hopeful for a positive change later in the year when interest rates may ease." (REINZ)

The current median Days to Sell of 49 days is more than the 10-year average for April which is 41 days. There were 24 weeks of inventory in April 2024 which is 1 week less than the same time last year.

Regional Analysis - Gisborne

In Gisborne, the median price increased 4.7% year-on-year to $670,000.

“The region saw a 22.9% increase in sales counts (from 35 to 43). Gisborne also saw a 10.0% lift in average listings year-on-year (from 30 to 33).

The region’s average inventory was 82 in April 2024, a 19.7% decrease year-on-year.” (REINZ)

The current median Days to Sell of 45 days is more than the 10-year average for April which is 38 days. There are 8 weeks of inventory in April 2024 which is 4 weeks less than last year.

Regional Analysis - Hawke's Bay 

Hawke’s Bay’s median price decreased significantly by 12.0% year-on-year, to $660,000.

“First-home buyers, owner-occupiers looking to downsize, and investors were the most active buyer groups in the region in April.

Open home attendance was steady, and auction room activity was fairly positive. Factors such as interest rates, challenges for buyers with getting finance approved, and the cost of living continue to impact market sentiment. Local agents are cautiously optimistic the market may improve later in the year.” (REINZ)

The current median Days to Sell of 44 days is more than the 10-year average for April which is 37 days. There were 16 weeks of inventory in April 2024 which is 2 weeks less than the same time last year.

Regional Analysis - Taranaki

Taranaki’s median price increased by 9.9% year-on-year to $622,000.

“Owner-occupiers were the most active buyer group, with some activity from first-home buyers as well. Most vendors have adjusted their prices to meet market expectations. Local agents report that while open home numbers for new listings have attracted good attendance, attendance has decreased for properties on the market for several weeks or longer.

In New Plymouth, listing numbers are high which is bringing new buyers to the market. However, high interest rates and uncertainty around when these will ease remain a concern for most buyers. Local agents are cautiously optimistic that investment activity will increase in the coming months once policy changes for landlords are in effect.” (REINZ)

The current median Days to Sell of 40 days is more than the 10-year average for April which is 37 days. There were 20 weeks of inventory in April 2024 which is 2 weeks less than the same time last year.

Regional Analysis - Manawatu/Whanganui

The median price for Manawatu/Whanganui decreased by 0.2% to $555,000.

“Owner-occupiers continue to be the most active buyer group in the region.

Local agents report that most vendors are holding firm to their original price expectations when first entering the market. Open home attendance has varied, with good numbers visiting newly listed properties. Factors such as interest rates, the cost of living, and high levels of listings continue to influence the market.” (REINZ)

The current median Days to Sell of 48 days is more than the 10-year average for April which is 36 days. There were 22 weeks of inventory in April 2024 which is 1 week more than the same time last year.

Regional Analysis - Wellington

Wellington’s median price has increased by 1.7% year-on-year to $819,000.

“The region saw an increase in sales count, by 22.3% year-on-year (from 471 sales to 576 sales). Wellington also saw a lift in average listings year-on-year by 69.0% (from 461 to 779).

The region’s average inventory was 1,914 in April 2024, an increase of 19.4% year-on-year." (REINZ)

The current median Days to Sell of 40 days is more than the 10-year average for April of 36 days. There were 13 weeks of inventory in April 2024 which is 4 weeks less than the same time last year.

Regional Analysis - Nelson/Tasman/Marlborough

In Nelson, the median price has decreased 1.4% year-on-year to $710,000. In Marlborough, the median price has increased 13.4% year-on-year to $700,000. In Tasman, the median price has increased 6.4% year-on-year to $830,000.

“Owner-occupiers were the most active buyer group in Blenheim, and first-home buyers were the most active buyer group in Nelson.

When it comes to vendor price expectations, some have adjusted their prices to align with the market, while others prefer to stick to their original prices and then may reduce them after a short time on the market. Local agents report that open home attendance across the region was variable.

High interest rates, uncertainty around the market, and lack of buyer urgency are impacting market sentiment. Local agents predict that activity levels will remain the same over the colder months." (REINZ)

The current median Days to Sell of 45 days is more than the 10-year average for April which is 36 days. There were 22 weeks of inventory in April 2024 which is 5 weeks less than the same time last year.

Regional Analysis - West Coast

In the West Coast, the median price has increased 19.8% year-on-year to $430,000, a record high median price for the region.

“Buyers from outside the region were the most active in the market in April. Local agents report that buyer activity has reduced, largely due to high interest rates.

Vendors are adjusting their expectations to meet the market. Open home attendance has been steady across the region. Factors such as interest rates and job uncertainty have had the most significant influence on market sentiment. Local agents predict that market activity will increase, and sentiment will become more positive once some key announcements in the mining sector have been made, which could bring more buyers to the area.” (REINZ)

The current median Days to Sell of 52 days is much less than the 10-year average for April which is 72 days. There were 29 weeks of inventory in April 2024 which is 13 weeks less than the same time last year.

Regional Analysis - Canterbury

Canterbury’s median price has increased 0.8% year-on-year to $670,000.

“Owner-occupiers and first-home buyers remained the active buyer groups in Christchurch, while local agents report owner occupier enquiries have decreased in Timaru.

Most vendors are adjusting their prices to meet market expectations. Open home attendance was varied across the region, with most reporting steady numbers. Auction activity is seeing strong numbers in Christchurch and Timaru, with fewer auctions reported in Ashburton.

Factors such as high interest rates and cost of living are having the most significant impact on market sentiment. Local agents are cautiously optimistic that the market will remain steady throughout the region over the coming months.” (REINZ)

The current median Days to Sell of 33 days is the same as the 10-year average for April which is 33 days. There were 16 weeks of inventory in April 2024 which is 3 weeks less than the same time last year.

Regional Analysis - Otago

Dunedin City - “Dunedin’s median price has increased 9.4% year-on-year to $629,000."

The region saw a lift in sales count by 20.1% year-on-year (from 134 to 161). Dunedin saw a year-on-year decrease in median days to sell by 9 days (from 43 to 34). There were 206 new listings in Dunedin, which was an increase of 52.6% year-on-year.”

Queenstown Lakes

“First-home buyers and owner-occupiers remained the most active in the market. Some vendors are adjusting their price expectations to meet the market. Auction activity has been slow, with some properties selling after the auction rather than in the auction room. Local salespeople report busy open home numbers across most listings.

Factors such as interest rates and high levels of listings are influencing market sentiment. Local agents predict the market will remain steady as we enter the cooler months.” (REINZ)

The current median Days to Sell of 41 days is more than the 10-year average for April which is 36 days. There were 20 weeks of inventory in April 2024 which is 2 weeks more than the same time last year.

Regional Analysis - Southland

The median price in Southland has increased 7.1% year-on-year to $455,000.

“The region continued to see activity among all buyer groups over April, although some purchasers remain cautious and are taking time before making decisions. Most vendors are setting realistic price expectations to meet the market.

Local agents report steady attendance at open homes across the region. Factors such as mortgage serviceability and challenges for buyers with getting finance approved are having the most impact on market sentiment. Local agents remain cautiously optimistic that activity will improve later in the year." (REINZ)

The current median Days to Sell of 40 days is more than the 10-year average for April which is 36 days. There were 15 weeks of inventory in April 2024 which is 6 weeks less than the same time last year.