Northland real estate agents believe the property market is bouncing back after a quiet winter, which likely reached the bottom of the market.
The median sale price in August for Northland was $600,000, down 3.2% from August 2024 and below the national median of $761,000.
The figures from the Real Estate Institute of New Zealand (Reinz) also show August’s sale price was down 6.5% from August 2022, when prices were high during the post-Covid boom.
Average house values estimated by Valocity were $826,000 for Northland in August, up 1.7% from August 2024.
Senior research analyst Wayne Shum said the soon-to-be-released September figures will show values in Northland stayed flat, but a turnaround could be around the corner.
“Interest rates are still trending down at the moment and there’s lots of commentary saying employment is potentially improving; we’re potentially coming into a turnaround in the market.”
Shum said any increase in value would likely be slow and steady, unlike the large double-digit percentage increases of 2021 and 2022.
Growth areas in Northland include Mangawhai – a popular bach area for Aucklanders – and towns like Kaitāia, where houses are affordable for the likes of first-home buyers, he said.
Tony Grindle, one of the directors of Bayleys North of Auckland, said confidence in the market was low, but that is changing.
Spring listings are coming up in record numbers in Northland, not just in urban residential but also in rural properties, waterfront homes and commercial properties, he said.
“We haven’t had the amount of top-end properties for sale that we currently have.”
Northland is seeing the benefits of high commodity prices, with both beef and dairy farmers now keen to buy off-farm assets, such as a holiday home, Grindle said.
The activity this is creating led to three auctions recently being brought forward because the buyer did not want to wait, he said.
Currently, 85% of Bayleys’ auctions are clearing, or selling within seven days, Grindle said.
He expected average prices would now increase.
“Confidence is everything. In the market at the moment, we’re seeing an increase – not like in 2022 when stupid money was being paid and people were buying just because of the fear of missing out – but it’s strong and it’s growing.”
The true picture would not be clear for a few more months, with Labour Weekend being the traditional time for properties to be listed, Grindle said.
“I think the worst is behind us ... the pessimism is behind us.”
Paul Beazley, general manager of Harcourts Whangārei, Bream Bay and Kerikeri, also believed prices had hit the bottom of the market and would rise from here.
“There’s definitely been a quiet market over winter, but we can feel some momentum now: more buyers are looking at open homes and more properties are coming on the market.”
Northland’s median price in August reflected the fact that many sales were to first-home buyers, buying homes in the $500,000 to $700,000 range, he said.
Beazley expected the momentum in sales would continue.
“There’s more opportunity. It’s probably going to continue if these interest rates keep coming back – it gives everybody more confidence to go out there and buy a house.”
As well as first-home buyers, homes were being bought by Aucklanders moving north to retire or change their lifestyle, Beazley said.
“Whangārei is a great place to live and a great place to bring up families.”
He said places like Kerikeri and Bream Bay were popular with Aucklanders, while Kamo was also a popular Whangārei suburb for house sales.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.