Nationwide, total property sales in March were up 7.4 per cent compared to February, and the median sale price was up 2.7 per cent, according to REINZ. Photo / Fiona Goodall
Nationwide, total property sales in March were up 7.4 per cent compared to February, and the median sale price was up 2.7 per cent, according to REINZ. Photo / Fiona Goodall
Property listings were well up in March according to a new Real Estate Institute of New Zealand (REINZ) report, with five regions showing especially strong growth.
And an economist said the story was one of high supply, rather than demand.
REINZ March 2024 data released today showed a significant increasein listings and stock levels.
The market was clearly more active than a year ago, REINZ chief executive Jen Baird said.
The institute reported more listing numbers, increased stock levels, higher sales counts and higher median sale prices.
“Listings increased substantially, up by 23.9 per cent nationally compared with March 2023, reinforcing a trend we have seen since the beginning of 2024 with more property coming to market,” Baird said.
“Agents are seeing activity among a range of buyer groups, with first-home buyers and owner-occupiers being the most active.”
Be cool, economist says
Westpac senior economist Michael Gordon said strong population growth was coinciding with a decline or stagnation in new building projects.
“There’s still pressure on housing stock as a whole,” he told the Herald.
“In terms of where the pressure on prices is coming from, this is still more a story of more houses on the market rather than increased demand for houses ... That suggests there’s still some downward pressure on prices.”
But he expected the market to pick up, with prices lifting 6 per cent this year. Much of that growth was probably still a few months away, he said.
And for many people, mortgage rates were higher now than a year or two ago.
“A lot of people are still in the position that if they don’t have to sell at a loss or below what they’d like to, then they don’t. They’re not forced to accept lower prices.”
Barring any catastrophes, many economists expect a cut to the Official Cash Rate in this year’s fourth quarter.
“In terms of the wider economy, we are expecting some modest growth,” Gordon added.
That fourth quarter GDP growth might still be lower than overall population growth, he prognosticated.
“There are likely still some buyers sitting on the sidelines waiting for borrowing costs to fall - but that’s probably more a ‘later in the year’ story.”
ASB today said it expected house prices to lift this year, but growth would be modest until interest rates fell.
Regional leaders and laggards
REINZ said five regions, all in the North Island, had big year-on-year increases in listings.
Wellington listings were up 32.4 per cent, Auckland was up 31.4 per cent, Manawatū-Whanganui was up 30.4 per cent, the Bay of Plenty had 28.8 per cent more listings, and Hawke’s Bay was up 26.8 per cent.
It was the second consecutive month in which North Island regions recorded the highest year-on-year increases in listings, REINZ said.
The institute said only Nelson and the West Coast had year-on-year decreases.
The housing market was clearly more active compared to a year ago, REINZ chief executive Jen Baird said.
In sales counts, Gisborne had the top year-on-year increase in sales, at 27.8 per cent.
REINZ said that reflected a more usual level of demand, bouncing back from lows after Cyclone Hale and Cyclone Gabrielle struck early last year.
Nationwide, total property sales in March were up 7.4 per cent compared to February.
The national median sale price was up 2.7 per cent from $779,000 to $800,000, year-on-year.
The country was now probably past the lowest point of this market cycle, Baird said. Median days to sell decreased by six days compared to a year ago, from 44 to 38 days.
Gisborne had the highest year-on-year increase in sales among all regions, at 27.8 per cent.
“Overall, the data paints a picture of the New Zealand housing market being more active, characterised by increasing listings, solid sales activity, expanding stock levels, and lifts in property prices,” Baird added.
Basically, REINZ said things had normalised after a sluggish 2023.
The property report said high interest rates and job market uncertainty meant some buyers were cautious, with prices still off their peaks from a few years ago.
“Most agents are cautiously optimistic that market activity will continue to pick up as we move into the cooler months,” Baird said.
John Weekes, online business editor, has covered court, crime, politics, breaking news and consumer affairs. He reports on topics including scams, strikes, retail and macroeconomics.
