The New Zealand property market is experiencing a unique blend of optimism and caution as October 2024 recorded its highest stock levels for the month in nearly a decade.
According to the latest Property Report, over 32,000 properties were available nationwide—a 26.3% increase compared to October 2023 and a 7.7% rise from September 2024. This inventory offers prospective buyers a wider selection than they have seen in years, as the spring selling season gains momentum.
The recent cut to the Official Cash Rate (OCR) and easing interest rates have contributed to renewed interest in the market. Following the OCR drop, buyer enquiries lifted by 17.1% compared to the period before the announcement (09/10/24 – 27/10/24 vs 20/09/24 – 08/10/24).
Sarah Wood, CEO of realestate.co.nz, said that while this renewed interest is promising, there are still factors at play that keep some buyers cautious.
“While buyer activity is climbing, economic factors are keeping some would-be buyers on the sidelines,” Ms Wood said.
Stock levels showed positive growth across all regions, with the majority experiencing double-digit increases. Gisborne led with an 81.2% rise year-on-year, followed by Wellington with a 52.9% increase. Only Northland, Taranaki, Nelson, and Southland posted single-digit stock growth.
Despite the high stock levels, there are signs of early market movement. Properties listed for less than 30 days increased from 23.9% in September to 27.9% in October, indicating faster turnover.
“We can see buyer sentiment changing with the amount of time properties are staying on the site. Properties listed for less than 30 days increased, meaning that stock is moving faster, and interest is warming up,” said Ms Wood.
One of the standout aspects of the current market is the price stability over the past 22 months. The national average asking price has remained between $850,000 and $890,000, providing rare predictability for both buyers and sellers.
In October 2024, the average asking price was $856,981, down 3.0% from the previous year and 1.5% from the prior month. Most regions saw less than 10% fluctuation in their average asking prices compared to 2023, adding to the market’s stability.
However, regional differences were notable. The West Coast recorded the highest year-on-year increase in average asking price at 14.3%, while Wairarapa experienced the steepest decline, with prices falling 12.1% compared to last year.
“Both are smaller markets and tend to be more prone to fluctuation,” Ms Wood explained.
