According to the most recent data from realestate.co.nz*, post-election optimism is significantly influencing the New Zealand real estate market, with a growing number of sellers opting for sales by auction.

In October, new listings were up, auctions regained popularity with sellers, and the national average asking price lifted back to January 2023 levels. 

Buyers were notably more active, with a 7.0% increase compared to September and a 3.1% rise compared to the same period last year. This indicates a growing level of buyer interest in October.

Vanessa Williams, the spokesperson for realestate.co.nz, says these indicators suggest the market is starting to move: “It is difficult to say for sure what is causing the shift. It could be the coming change of government, the OCR holding for the third consecutive month or the cyclical nature of the property market. However, this will be welcome news for anyone wanting to sell.” 

Vanessa commented that real estate agents are noticing a surge in open house attendance, providing additional evidence of heightened market activity.

Auctions are proving more popular 

In the previous month, auctions surpassed display prices as the favoured sales method. In October, 28.3% of all listings on realestate.co.nz were offered for sale through auctions, while those featuring display prices made up 26.5% of all listings.

Vanessa says this change indicates the market is becoming more competitive: “Auctions are generally more popular in a hot market. Seeing the number of auctions increase tells us that buyers and sellers are more confident to transact under the hammer.”

The number of listings for sale by auction at realestate.co.nz has steadily increased since May this year.

Keith Niederer, General Manager NZ, Raine & Horne, emphasised the significance of utilising the auction method for selling homes.

“Selling a home through an auction proves invaluable, especially when dealing with unique properties that are challenging to appraise and price accurately."

Keith also pointed out that auctions offer several advantages, such as a shorter sales timeline than traditional display prices. 

“Moreover, the auction process is transparent and straightforward, allowing buyers to make immediate decisions without the uncertainty associated with making offers and wondering about competing bids from other potential buyers,” Keith said. 

“Additionally, from the seller’s perspective, auctions provide the benefit of finalising the sale on the very day of the auction, thanks to the open and competitive nature of the process.”

For further information regarding the advantages of auctioning your property, please contact your nearest Raine & Horne office.