In February, the New Zealand property market continued to rebound, with values increasing by 1.2% month-on-month and 3% for the year.

This scenario is a far cry from 12 months ago when higher interest rates dampened market activity. According to Keith Niederer, General Manager, NZ, Raine & Horne, not only are property values on the rise, but there’s also a noticeable uptick in demand.

For instance, the number of people searching per listing on realestate.co.nz in February was up 10.1% compared to last year. Engagement, which includes property saves and enquiries, was also up 22.6% nationally. Regions that saw the highest increase in engagements were Wellington (up 63.6%) and Wairarapa (up 53.5%).

On the flip side, a more stable interest rate environment, robust values, and increased demand are injecting energy into the supply side of the equation. In February, realestate.co.nz reports that the total number of properties on the market hit its highest level in almost a decade, reaching 31,424 (an 8.1% year-on-year increase). The last time supply surpassed 30,000 was in November 2015.

Most regions played a part in the revival, as new listings increased across all 19 regions. The most substantial increases were observed in Northland (up 94.6%), Coromandel (up 85.3%), Wellington (up 76.6%), Hawke’s Bay (up 75.4%), and Auckland (up 64.0%).

According to Keith Niederer, the current situation reflects typical market dynamics.

“We’ve moved away from the intense volatility seen in the aftermath of COVID,” he remarked. “We’re now experiencing a return to a more balanced state. This is fostering a healthier market for both buyers and sellers.”

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