New data suggests that fewer Kiwis are buying and holding family homes for the long term with research from realestate.co.nz showing that Kiwis now hold onto homes for an average of just five and a half years before selling.

The research showed that on average, people hold properties for the least time in the Auckland region where the time between property sales was approximately five years and three months.

Kiwis held onto their properties for the longest in Taranaki (six years and five months), Manawatu/Whanganui (six years and four months), Gisborne (six years and three months), and the West Coast regions (six years and two months).

Regions where property moved more quickly than the national average were Waikato, Nelson and Bays, and Bay of Plenty, where the average time between sales was five years and four months.

At a district level, the districts where properties were sold the most often were Selwyn in Canterbury (four years and nine months), Franklin in Auckland (four years and 10 months), the Waikato district (five years), and Papakura in Auckland (five years).

Properties in South Taranaki District were held the longest (six years and eight months), followed by Tararua in Manawatu/Whanganui (six years and six months) and Ruapehu in Central North Island (six years and six months).

Nationally property buying activity poised to start increasing 

Meanwhile, the latest CoreLogic monthly housing report showed that nationally property sales activity increased by around 8% in September compared to the same month a year ago, which was the 16^th rise in the past 17 months. However, values remained 10-15% below normal for this time of year, despite a high level of listings. 

The CoreLogic Home Value Index fell by a further 0.5% in September, the seventh decline in a row after February’s peak to nearly 5%. CoreLogic said Auckland fell again in September alongside Wellington, which has seen values drop by more than 3% since June.

Ian Keightley, Head of Operations, Raine & Horne New Zealand said with further OCI cuts expected which would lead to mortgage interest rates falling further, property values could soon stop falling on a national basis and start increasing. “However, as CoreLogic has noted, while buying activity is likely to increase it will probably not result in a boom, given the country’s economic malaise and the weak labour market. But, for buyers looking to enter the market, upgrade or downside, now is an ideal time to buy and make the most of the large amount of choice available, before prices start going up and competition increases,” Ian said.

Whether you want to sell buy or rent a property, don’t hesitate to contact your local Raine & Horne office.