- Unprecedented price stability offers more certainty for buyers and sellers
- Spring stock levels the highest they’ve been in a decade
- Sellers gain confidence with the highest September listings since 2020.
The economic environment is shifting toward buyers, driven by declining interest rates, easing inflation, and August’s OCR cut, which boosted buyer activity. Now, the latest data from realestate.co.nz signals that the property environment might also be ripe for property seekers.
Stock levels remained high during September, providing potential buyers with plenty of options for finding their perfect property. Average asking prices also remained flat, marking the longest stretch of price stability since records began 17 years ago.
“For almost two years, our national average asking price has hovered between $860,000 and $890,000. We’ve never seen prices remain flat for this long,” says Vanessa Williams, spokesperson for realestate.co.nz.
However, growing interest suggests buyers may be eager to act before the market changes, especially with another OCR review on the horizon.
Total active users on realestate.co.nz were at an all-time high during September, up 28% on this time last year. Additionally, the site experienced the largest international audience in more than 12 months, with searches from Australia up 35%, the United States up 16%, and the UK up 25% year-on-year. Residential sale enquiries were also up by 9.6% year-on-year.
Williams notes that while high stock levels will take time to clear, market shifts are inevitable: “Although we won’t see the market change overnight, it is cyclical, and eventually, we will see movement. For those waiting for the perfect time to enter the market, this could be the window of opportunity they’ve been hoping for.”
Unprecedented price stability offers certainty for both buyers and sellers
In September, the national average asking price remained static, increasing just 0.2% year-on-year and 2.7% month-on-month. This marks 20 months of flat asking prices, the longest stretch of stability on record.
“Property market prices started flattening out in January 2023, when the national average asking price was $879,53. Almost two years later, we are sitting at $870,110.”
“This gives buyers and sellers a rare degree of market predictability. Buyers can confidently enter the market, knowing prices have remained steady, while sellers can adjust their expectations based on these consistent trends,” explains Williams.
The only regions to achieve double-digit growth year-on-year were Central Otago/Lakes District and Marlborough, with modest gains of 10.4% and 10.0%, respectively. This highlights the continued appeal of lifestyle regions.
Williams adds, “We’re seeing sustained interest in lifestyle regions like Central Otago/Lakes District and Marlborough, which offer not only space but an enviable lifestyle that continues to attract people, even with stock levels rising.”
Supply shortages did not drive these price increases; both regions saw stock levels rise by more than 30% year-on-year.
Spring stock levels at the highest they’ve been in a decade
Stock levels nationally remained elevated in September, with the total number of properties for sale surpassing 30,000 after a slight dip in August. This is the first time stock levels have exceeded 30,000 during the month of September since 2014.
Nearly 6,500 more properties were available for sale last month compared to September 2023. Most regions experienced double-digit growth last month, except for Nelson and Bays (up 8.3%) and the West Coast (up 9.7%).
“With so many properties on the market, buyers have plenty of options as we head into the warmer months. If confidence continues to grow, we may start seeing stock levels decline as more buyers take advantage of current opportunities,” says Williams.
Sellers gain confidence with the highest September listings since 2020
New listings surged in September, rising 18.7% year-on-year and 15.3% month-on-month nationally. This marks the highest level of September new listings in three years, highlighting renewed seller confidence. Regions with the most significant year-on-year increases include Gisborne (50.0%), Coromandel (40.2%), Central Otago/Lakes District (40.9%), Wellington (36.1%), Otago (34.1%), and Central North Island (32.5%).
“We typically see an increase in listings as warmer weather encourages sellers to put their homes on the market,” explains Williams. “However, since 2021, spring has had a slower start, with more subdued listing levels during September. This year, we’re seeing a return to more typical spring activity, approaching 10,000 new listings compared to an average of around 7,000 in previous years.”
The increase in new listings suggests the potential for a busier spring season ahead for both buyers and sellers.
About realestate.co.nz
We’ve been helping people buy, sell, or rent property since 1996.
Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry.
Dedicated only to property, our mission is to empower people with a property search tool they can use to find the life they want to live. With residential, lifestyle, rural and commercial property listings, realestate.co.nz is the place to start for those looking to buy or sell property.
Whatever life you’re searching for, it all starts here.
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Glossary of terms:
Average asking price (AAP) is neither a valuation nor the sale price. It is an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released simultaneously.
New listings are a record of all the new residential dwellings listed for sale on realestate.co.nz for the relevant calendar month. The site reflects 97% of all properties listed through licensed real estate agents and major developers in New Zealand. This description gives a representative view of the New Zealand property market.
Stock is the total number of residential dwellings that are for sale on realestate.co.nz on the penultimate day of the month.
Rate of sale is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.
Seasonal adjustment is a method realestate.co.nz uses to represent better the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research.
Truncated mean is the method realestate.co.nz uses to supply statistically relevant asking prices. The top and bottom 10% of listings in each area are removed before the average is calculated to prevent exceptional listings from providing false impressions.
