In fantastic news for New Zealand property owners, the country’s economic headwinds—marked by high inflation, rising living costs, and restrictive interest rates—have not significantly impacted real estate prices, according to an industry report[i].

The latest real-time data from realestate.co.nz shows that the national average asking price has remained almost unchanged for nearly a year and a half, fluctuating between $860,000 and $890,000 since November 2022.

Sarah Wood, CEO of realestate.co.nz, says, “Both stock levels (supply) and the number of property seekers visiting realestate.co.nz (demand) has increased year-on-year. This confirms the laws of economics, where price stability is achieved when supply and demand are matched.”

“For buyers, increased stock levels mean more options and possibly better bargaining power. For sellers, heightened competition requires careful pricing strategies, optimal property presentation and a good marketing strategy to stand out from the crowd,” she adds. 

According to Sarah, whether we are at the bottom of the market remains to be seen: “We can say that it has absolutely been a flat market for almost a year and a half. Thanks to this stability, it’s an advantageous time to transact because homeowners have a better chance at predicting property values when selling and buying.” 

While markets like Auckland have remained relatively stable, many regions have experienced notable growth despite challenging economic conditions. The standout performer is the West Coast, with a remarkable price growth of 21.4% since last May. Following the West Coast, Marlborough saw growth of 5.3%, and Coromandel achieved a 3.5% increase. Several markets, including Waikato and Southland, recorded growth of 2.6%, outpacing Wairarapa at 2.5% and Taranaki at 2.3%.

The West Coast was the only region to hit an all-time asking price high in May. Reaching $554,877, this is the first time in 17 years of data that the region’s asking price has been above $550,000. 

Keith Niederer, General Manager, NZ, Raine & Horne, said that it’s still too early to determine if the market has bottomed out. “Right now, it’s hard to say whether we’ve reached the bottom of the property cycle, as several factors are influencing the market.” 

He also pointed out that the current market conditions are perfect for buyers looking to upsize who were previously priced out during the pandemic boom and first-timers eager to take advantage of incentives like the First Home Grants and First Home Loans.

Keith adds, “Ultimately, the decision of when to sell depends on an owner’s individual circumstances.”

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

 
[i] https://news.realestate.co.nz/blog/new-zealand-property-market-2024-may?lid=ieuwk9b0fahj