The Real Estate Institute of New Zealand’s (REINZ) June 2023 figures show a renewed level of activity emerging.
REINZ chief executive Jen Baird says June traditionally tends to be a slower month for the property market, however this month we are seeing a rise in sales counts alongside a hesitancy from sellers to list.
Compared to June 2022, this month has shown a notable increase in sales. The total number of properties sold across New Zealand in June 2023 was 5629, up from 4912 in June 2022 (+14.6 per cent), year-on-year. New Zealand excluding Auckland sales counts increased by 17.4 per cent year-on-year from 3203 to 3,761.
At the end of June, the total number of properties for sale across New Zealand was 24,676, down 6.1 per cent (1595 properties) from 26,271 year-on-year, and down 7.5 per cent month-on-month. New Zealand excluding Auckland was down from 15,820 to 15,655, a decrease of 165 properties annually.
“With sales counts up year-on-year but down slightly month-on-month, the change in direction of the national inventory level is driving ongoing lower levels of new property coming to market and an increase in the number of sales being made,” says Baird.
Historical data tells us that we typically expect a decrease in sales when moving from May to June across New Zealand. When that seasonal trend is considered, by applying seasonal adjustment to the sales count figures, we see those sales this June exceeded expectations when compared to the sales count in May 2023.
Nationally, new listings decreased by 21.2 per cent, from 7893 listings to 6218 year-on-year, and a 15.5 per cent decrease compared to May 2023 from 7359. New Zealand excluding Auckland listings decreased 19.8 per cent year-on-year from 4994 to 4,005.
“Salespeople across the country are reporting increased first home buyer activity at open homes, with the easing of LVR restrictions that came into effect on 1 June bringing more people out looking. Although activity has increased, caution remains as interest rates, a pending election and further strain caused by the cost-of-living tempers putting pen on paper,” says Baird.
Nationally, the June 2023 median price decreased 8.2 per cent year-on-year to $780,000 from $850,000. Days to sell have risen to 49 days for June 2023 – up 4 days compared to June 2022 and no change from May 2023. The West Coast and Tasman regions saw an annual increase in median price – up 8.1 per cent to $400,000 and 7.4 per cent to $800,000 respectively.
“In the last three months ending June 2023, 15,934 sales have occurred, a 1.2 per cent increase year-on-year,” Baird says.
“A lack of listings and the challenge of navigating the current economic climate are putting pressure on the market. Commentators say there are harder times ahead, but sales are still happening, people are still making choices about where and how they live, and these choices necessitate a property transaction.”
The REINZ House Price Index (HPI) for New Zealand, which measures the changing value of residential property nationwide, showed an annual decrease of -9 per cent for New Zealand and a -8 per cent decrease for New Zealand excluding Auckland.
National highlights
- The national median price has remained stable with a 0% change month on month and a -8.2% change year on year from $850,000 to $780,000. For New Zealand excluding Auckland, median prices were down 8.1% to $680,000.
- The total number of properties for sale across New Zealand decreased 6.1% year-on-year, and down 7.5% month-on-month.
- The total number of properties sold across New Zealand in June 2023 increased 14.6% year-on-year to 5629, decreasing 4.1% month-on-month.
- Nationally, new listings decreased by 21.2%, from 7893 listings in June 2022 to 6218 listings in June 2023.
- Days to sell have remained at 49 days for June 2023 — no change from May 2023 and up 4 days from June 2022.
- When that seasonal trend is taken into account June 2023 exceeded expectations when compared to the sales count in May 2023.
- The REINZ House Price Index (HPI) for New Zealand showed an annual decrease of 9.0% in the value of residential property nationwide.
Regional highlights
- Whilst prices continue to ease annually in most regions, West Coast saw an increase in median sale price, increasing 35.4% from $295,500 to $400,000.
- Auckland increased 0.8% month-on-month in the median sale price, reaching the $1m price point, but decreased 12.5% year on year.
- Two regions (Hawke’s Bay and Southland) had a decrease in the median days to sell.
- West Coast had the highest annual increase in median days (+28 days).
