More fantastic news for property owners in New Zealand: The latest data from CoreLogic[i] reveals that a significant majority (93.3%) of those who sold their properties in the last quarter of 2023 did so at a price consistent with prevailing market values.

The ratio of properties resold at prices exceeding their original purchase price increased from 92.4% in the previous quarter.

Moreover, the Core Logic Q4 2023 Pain & Gain Report's median gain on profitable resales rose by $8,000 to $305,000.

CoreLogic's Chief Property Economist Kelvin Davidson said these latest figures signal that the trough for this measure of housing performance has probably passed.

"The higher portion of profitable resales we're starting to see is consistent with the rise in property values themselves since September's trough, alongside wider market forces such as the peak for mortgage rates, high net migration, a resilient labour market and easing credit conditions."

Auckland saw significant improvements, with 90% of resales making a gross profit, up from 88.5% in Q3, breaking a run of weakening results that stretched back to late 2021. Wellington also saw a rise in profitable resales, from 91.4% in Q3 to 93.8% in Q4. Likewise, in Christchurch, profitable resales rose from 95.9% to 96.5% quarter-on-quarter.

The Pain & Gain report followed hot on the heels of CoreLogic's House Price Index, which increased for the fourth month in a row in January. Since September's trough, property values have risen 2.5%, bringing the national average to $928,184[ii].

In January, Wellington and Hamilton recorded mild growth of 0.1% and 0.2%, respectively, while Tauranga and Dunedin saw gains of at least 0.6%.

Keith Niederer, General Manager, NZ, Raine & Horne, said the current trends in New Zealand's real estate market further confirm a recovery and positive momentum. 

"The combination of consistent pricing, increasing profitability, positive market forces, and regional improvements indicates a favourable outlook for property owners," Keith said.

"However, it's essential to monitor these trends and market conditions closely for a more comprehensive understanding of the real estate landscape with the assistance of a local property specialist such as your local Raine & Horne agent."

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

[i] https://www.corelogic.co.nz/news-research/news/2024/profitable-resales-rise-for-the-first-time-in-two-years

[ii] https://www.corelogic.co.nz/news-research/news/2024/property-values-rise-0.4-to-kick-off-2024