Spring has arrived, bringing “a wave of positivity and optimism to New Zealand’s property market”, according to the Real Estate Institute (REINZ).
In citing its latest figures, the organisation said there was an “increase in sales and ever so slight increases in median prices” with “light at the end of the tunnel” for the market.
REINZ chief executive Jen Baird said data suggested the market was coming back to life.
“There seems to be light at the end of the tunnel,” she said.
“Although challenges like the cost of living remain, positive signs are emerging. Falling interest rates, increased inventory in the market, and greater activity during open-home events are all reflected in the data for October.”
The total number of properties sold nationally increased by 20.0% compared to October 2023, according to REINZ. Sales for New Zealand, excluding Auckland, rose 22.7% year-on-year, with notable increases in Nelson and Marlborough.
Baird said: “Salespeople are seeing more confidence among vendors and buyers now we’re into spring, and this shows signs of a busier market leading up to Christmas.”
The national median price increased by 0.7% year-on-year, to $795,000, while month-on-month, it increased by 1.9%, from $780,000.
Excluding Auckland, the median price rose 2.9% year-on-year to $710,000.
Regionally, 10 out of 16 areas reported an increase in median prices over the past year, with Marlborough leading at an 18.3% increase to $769,000. The West Coast followed closely with a 14.7% rise year-on-year to $390,000.
Month-on-month changes also revealed significant increases in Marlborough and Manawatū-Whanganui.
Baird said: “While median prices are gradually catching up, local salespeople note that some buyers remain cautious about overpaying for properties due to relatively high interest rates.
“This environment encourages buyers to be more strategic in their approach, making them feel confident in negotiating with vendors to reach an agreeable price.”
New listings also surged, continuing the trend since the beginning of 2024, with every month this year showing a higher number of listings than the same month in 2023.
Thirteen out of 15 regions reported increases compared to last year. The two regions that didn’t were Southland and Northland, which both had a 0.0% change year-on-year.
Overall, listings nationally increased by 21.4% to 11,572, and New Zealand (excluding Auckland) increased by 22.2% year-on-year to 7469.
REINZ’s House Price Index for New Zealand stood at 3616 — a decrease of 1.1% year-on-year but an increase of 0.5% month-on-month.
Over the past five years, the average annual growth rate for the House Price Index has been approximately 4.8%, although it currently sits at 15.4% below its peak in 2021.