The Property Market Continues to Stabilise

The August report from the Real Estate Institute of New Zealand (REINZ) shows steady activity in the housing market compared to the previous year and July 2023.

In the Auckland region, the sales count year-on-year was up by 18.2%, indicating a strong increase in the number of sales. The median days to sell within the Auckland region have shortened to 41 days, which is a positive sign for sellers.

However, there has been a drop in the median house price in Auckland year-on-year, around -8%. But, there has been a month-on-month increase of +2%. This suggests that the market is stabilising and that there is growing confidence in the marketplace.

Owner-occupiers were the most active buyers in most of Auckland’s regions, according to the previous month’s report. Attendance numbers at open homes have increased for another month, which is a positive sign for salespeople. This has translated to stronger attendance at auctions and an increase in the number of potential buyers attending the auctions.

As an office, we have seen that listing activity for the month was strong, which also led to a strong month of sales. Going forward, there appears to be a growing confidence in the marketplace, and the indications are that house values have bottomed out. This is a positive sign for both buyers and sellers.

Earlier in the year, there were steady and predictable lifts in interest rates and ongoing cost-of-living pressures. This, coupled with discussions on further falls in property value, made a strong case for not rushing into the marketplace as a seller or a buyer. However, the current signs are strong that the market has bottomed out, and there is a growing mood that we are heading to a more active and positive market.

In summary, the August report from REINZ shows that the housing market in Auckland is settling down, with a strong increase in sales count year-on-year and a decrease in median days to sell. Although there has been a drop in the median house price year-on-year, there has been a month-on-month increase, indicating that the market is stabilising. The growing confidence in the marketplace and the indications that house values have bottomed out are positive signs for both buyers and sellers.

Lisa and Steve Stone
Elite Agents for Ray White
Thestones.co.nz