A Balanced Property Market: Stability and Opportunity for Buyers and Sellers
As we approach the end of 2024, the property market is experiencing a harmonious balance characterized by stable prices, ample stock, declining interest rates, and increased buyer engagement, creating a ‘Goldilocks’ scenario for both buyers and sellers.
For nearly two years, property prices have remained steady, providing the stability buyers seek and the predictability sellers desire. The national average asking price has consistently fluctuated between $850,000 and $890,000, with November showing a slight decrease to $846,150—marking a 2.8% drop year-on-year and a 1.1% decline month-on-month.
With the highest stock levels observed in November in eight years, nearly 34,000 properties are available, reflecting a year-on-year increase of 21.3%. This surge in inventory gives buyers a wider array of choices while sales activity is also on the rise, with the Real Estate Institute of New Zealand (REINZ) reporting over 6,500 properties sold in October—the best monthly performance since March 2022.
The steady decrease in the Official Cash Rate (OCR) to 4.25% for the third time in a row is making borrowing more affordable, further solidifying market stability. The absence of election-year uncertainty has contributed to this environment, allowing buyers and sellers to make confident decisions without the usual hesitations.
Despite the robust stock levels, properties are moving off the market. The percentage of listings that sold or were withdrawn within 30 days increased by 1.4%, indicating a healthy turnover. The preferred method of selling remains listings with a displayed price, which constituted 29.4% of all listings in November, helping buyers set realistic expectations.
New listings growth is stabilizing, with a modest year-on-year increase of 3.9%—the first single-digit rise this year—indicating a return to typical market behavior following a turbulent 2023. While some regions like Central Otago and Wairarapa saw price increases, others, such as Bay of Plenty and Wellington, experienced declines. Overall, the market reflects a balance that Kiwis have long awaited, where both buyers and sellers can thrive.
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