Auckland Property Market Update March
The latest statistics in the Auckland region’s real estate market indicate an interesting trend. Despite a significant increase in the number of properties for sale, the prices have remained stable, creating a scenario where buyers have more options to choose from.
This situation has led to what is described as “flattish growth,” suggesting a market that is improving cautiously. Real estate salespeople are increasingly optimistic about a stronger second half of the year, even amidst challenges like high but steady interest rates and uncertainties surrounding employment and income stability.
Within the real estate community, there is growing confidence in a more robust market in the coming months. The BNZ is forecasting a 5% increase in house prices, echoing this positive sentiment for a busier second half of the year. Notably, Ray White has observed a rise in auction activity nationally, with a 51.4% success rate and an average of over two active bidders per auction. The Stones team has had a success rate of over 97% for the past 6 months, with several properties selling for well over CV.
The House Price Index (HPI) for New Zealand saw a 1.1% increase in February compared to the previous month and a 3.2% increase from the same period last year.
Over the past five years, the average annual growth in New Zealand’s HPI has been 5.9% per annum, currently standing at 13.5% below the market’s peak in 2021. Reports from Auckland suggest that first-home buyers and owner-occupiers remain the most active buyer segments. There is anticipation of increased interest from investment buyers following the implementation of new legislation post-April 1st.
One thing we have learned in our almost 15 years in real estate is that the market has a mind of its own and no matter how clever we may think we are in predicting trends and peaks and troughs, if you are buying and selling in the same market there is a balance to your sale and your purchasing which safeguards your investment.
If you are speculating on the property market, then good luck in reading the signs!
Lisa and Steve Stone
Elite Agents for Ray White
Thestones.co.nz