“After 18 years of tracking the property market, this is one of those rare moments where certainty and opportunity align, creating a true Goldilocks market that benefits buyers and sellers.” – Vanessa Williams, realestate.co.nz.

Williams’ observation is based on latest figures from realestate.co.nz, which show property prices have remained steady for nearly two years, hovering between $850,000 and $890,000, with stock levels up 21.3% year-on-year, offering buyers plenty of choice.

These more favourable conditions appear to have energised sales activity – Real Estate Institute of New Zealand (REINZ) reported that over 6,500 properties sold in October, up 10% compared to September, up 20% compared to October last year, and the highest monthly total since March 2022.

Properties appear to be selling faster

The overhang of unsold properties at the end of each month has been steadily declining for the last four months, from 27,727 at the end of June, to 23,347 at the end of October. That’s a decline of 16% over the last four months. And while still high – up 31% compared to October last year – at least it’s now moving to more balanced territory.

The proportion of listings on realestate.co.nz for less than 30 days before being sold or withdrawn rose by 1.4%, and those listed on-site for 30-to-60 days increased by 3.1%. Meanwhile, listings on-site for more than 60 days declined across the board.

Stabilising factors

Falling interest rates are a boon for borrowers. So, too, is the absence of election-year uncertainty – a period when many Kiwis delay property decisions.

Debt-to-income (DTI) ratios, used by banks to determine lending risk, have also helped maintain a certain balance, keeping both home buyers and investors in check.

Despite November stock levels reaching their highest point since April 2015, the national average asking price held steady, marking 23 months of prices hovering between $850,000 and $890,000. Year-on-year, the national average asking price dipped by 2.8%, while month-on-month, it declined by 1.1%.

Auckland asking price recovers

Auckland saw a comeback in October with an average asking price of $1,038,550, up 4.2% or more than $42,000. This was a significant increase on August, when the average asking price dropped below $1m for the first time in four years.

Auckland City and North Shore City were partly responsible for the month-on-month growth, up 7.8% to $1,217,300 and 5.1% to $1,235,300 respectively.

Confidence grows

In the meantime, Kiwis are feeling more optimistic about the housing market. ASB’s recently published Housing Insights Report recorded a net 24% increase in locals who expect house prices to increase. This compares to 13% in the last quarter.

There was also a significant increase in the proportion of respondents expecting interest rates to fall rather than rise. A net 57% of survey respondents expect lower interest rates – the highest percentage since the ASB’s Housing Confidence Survey began in 1996.

Across the regions, New Zealanders’ opinions are positive regarding current buying conditions – 20% of survey respondents believe now is a good time to buy. According to the report writer, falling interest rates, plentiful supply, and subdued house prices are putting wind in the sails of house hunters.

“Nevertheless, a softening labour market may give some a reason to pause for thought. Overall, the ASB housing confidence survey is positive in all categories this quarter and suggests that momentum could start to build more noticeably in coming months. This aligns with our expectations that house prices will start to lift in 2025,” the report stated.

Both listings and sales are increasing. Call 0800 GOODWINS for an appraisal or a chat about activity in your neck of the woods.