New listings are back to normal March levels, stock levels return to where they were in 2015, and prices remain stable.
Despite Kiwis feeling the pinch of rising interest rates, high levels of inflation, and recessionary pressures, the New Zealand property market has remained resilient.
The latest data from realestate.co.nz shows that the national average asking price has remained static overall, with modest growth of 2.9% over the last 12 months.
During March, new listings were up nationally by 23.9% year-on-year and in all regions except Nelson & Bays and the West Coast, while stock lifted back to levels not seen since 2015.
Sarah Wood, CEO of realestate.co.nz, suggests the increase in supply is a return to normal after last year’s unusually low new listings. She explains that in March 2023, Kiwis were facing a lot of uncertainty, which led many to delay transacting property:
“We might have been beyond COVID-19 lockdowns and border closures, but inflation was at a level not seen since the 1990s, and everyone was watching the Official Cash Rate for clues on interest rates.”
“Although these financial challenges haven’t gone away, relative price stability and return to ‘normal’ listing volumes indicate good property market resilience.”
Average asking prices stay static
Prices sat relatively stable during March, with no average asking price highs in any of our 19 regions. Our national average asking price also saw minimal change – up 2.9% year-on-year and down 1.3% month-on-month.
“Our national average asking price has grown modestly in the past year, fluctuating between $860,000 and $890,000. This seems to be a correction on the early 2022 peak when it neared $1 million,” explains Wood.
Regional New Zealand took charge this month as five of our 19 regions witnessed increases in average asking prices both year-on-year and month-on-month during March: Northland (2.4% year-on-year and 3.9% month-on-month), Central North Island (8.9% year-on-year and 2.6% month-on-month), West Coast (16.7% year-on-year and 2.9% month-on-month), Otago (7.1% year-on-year and 3.9% month-on-month), and Southland (3.0% year-on-year and 1.1% month-on-month).
After exceeding $1.6 million for two months, the average asking price in Central Otago/Lakes District has dipped back into the $1.5 million range. Despite this fluctuation, it retains its position as the region with the highest average asking price in the country. Given the amount of luxury stock in the area, Wood notes that such variations aren’t unexpected.
Meanwhile, at the opposite end of the spectrum, the West Coast, known for having the nation’s lowest average asking price, surpassed the $500,000 mark last month for only the second time in the 17 years since records began.
Wood says that the variation across our regions signals that each local market responds differently to economic factors, and that is why she always recomm
