House sales picked up in February, Auckland median passes $1m again, but market still ‘treading water’

The housing market went to sleep in January but picked up some energy last month. Photo / Chris Tarpey

The housing market seems to be moving sideways but at least picked up last month after a very slow January, economists say.

Auckland’s median sale price was back above $1 million to $1,025,000.

And all regions except for the West Coast had an increase in activity during February, according to new Real Estate Institute (REINZ) figures.

Westpac said the housing market was more active in February, after an exceptionally slow January.

“However, the broader trend is that the market still appears to be treading water,” Westpac senior economist Michael Gordon said.

“House sales rose by 14 per cent in seasonally-adjusted terms in February,” he added after the REINZ data was released today.

“The level of sales is now back to around where they were in mid-2023.”

A surge of new listings was recorded but on balance, the stock of unsold homes was rising.

That was a negative signal for prices in the near-term, Gordon said.

The REINZ house price index was flat for February in seasonally-adjusted terms.

“Prices are up by about 3 per cent from the low point reached a year ago,” Gordon said.

He said Westpac expected the current softness would gradually give way to a period of stronger activity.

High population growth and a lift in investor sentiment would likely propel that strength.

ANZ said the Government’s reversal of interest deductibility rules for investors was worth noting but the Reserve Bank previously said that would not make a big difference to the market.

“House prices eked out a modest gain in February, as sales lifted to still‑subdued levels, and days to sell extended by two,” ANZ economists said today.

“All up, it’s a bit of a mixed bag, and suggests the market is trending sideways.”

ASB said activity rebounded sharply from January’s slump, and a burst of activity in Auckland drove that.

But the bank added: “Sales activity will need to remain robust to keep a lid on anecdotes of rising inventory.”

ASB expected strong population growth to underpin demand for housing this year.

Blenheim, the biggest town in Marlborough, where the house sales count more than doubled compared to February last year. Photo / Patrik Stedrak

REINZ chief executive Jen Baird said a combination of high listing numbers, elevated stock and shifts in the median sale price were contributing to increased activity.

“There was a substantial rise in listings nationally, indicating heightened activity in the housing market.

More houses for sale

“New Zealand’s stock levels saw a year-on-year increase, resulting in a growing inventory of available properties for sale.

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

Apart from the West Coast and Taranaki, all regions recorded a sales count year-on-year increase of more than 20 per cent.

The Marlborough sales count more than doubled compared to February last year, 37 to 77 sales, Baird said.

REINZ said inventory levels nationwide increased year-on-year by 8.1 per cent, from 29,083 to 31,424 properties.

The national median sale price rose 3.1 per cent from $766,000 to $790,000 year-on-year.

“New Zealand, excluding Auckland, also increased month-on-month, +3.6 per cent from $685,000 to $710,000 and up year-on-year by 2.6 per cent from $692,000 to $710,000.”

REINZ said month-on-month listings increased 60.4 per cent from 7347 to 11,788.

And across the year, listings were up by 44.8 per cent from 8143 to 11,788.