With an increase in homes for sale and slower sales this winter, buyers have a wide range of options.
Recent mortgage rate cuts, lower inflation, and speculation about a potential drop in the Official Cash Rate have sparked some midwinter economic optimism. Yet, realestate.co.nz data shows the 2024 winter property market remains cool, with a notable rise in listings and sluggish sales.
In July, the total number of homes for sale rose by 32.3% year-on-year, reaching 30,556. New listings also spiked by 31.3%, breaking a seven-year trend of low July listings. Additionally, 10 out of 19 regions saw slower-than-average sales.
Sarah Wood, CEO of realestate.co.nz, highlights that July saw nearly 7,500 more homes available compared to last year:
“Seventeen regions experienced double-digit increases in total stock compared to July 2023, with only Taranaki and West Coast lagging slightly.”
“Buyers have plenty of choices and time to decide, but sellers may face a competitive market. It’s crucial for sellers to stay informed and be prepared to negotiate.”
More Listings and Slower Sales
July saw a 31.3% rise in new listings nationwide, reversing a seven-year trend of low July listings. The Central North Island experienced the most significant increase, with new listings nearly doubling.
In the current economic climate, some property owners are compelled to sell, particularly those who bought at market peaks. Recent policy changes, like the reduction of the bright-line test, may also influence the market.
Slower Sales Across Regions
Sales have slowed, with 10 out of 19 regions seeing below-average sales rates. For example, in Auckland, it would take about 40 weeks to sell the current stock, compared to a long-term average of 23 weeks.
Price Fluctuations
Average asking prices varied in July. Some regions, like Canterbury and Gisborne, saw price increases, while others, including Northland and Waikato, experienced declines. The national average asking price fell to $848,548, down 2.3% year-on-year and 1.4% month-on-month.
These price fluctuations are notable compared to the stability of the past 18 months, Vendor expectations may be shifting in some regions.
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