House sales surge up by over 15% in November
“November continues the trend of slow and steady improvement in property market activity now that the country is past the election and heading into more active months in the property cycle.” REINZ Chief Executive Jen Baird
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See full article from The Press below:
By Miriam Bell
House sales climbed by 15.7% last month as the market recovers, and that rising trend is set to continue, the Real Estate Institute says.
There were 6422 sales nationwide in November, up from 5550 in October, the institute’s latest figures showed. Sales were also up annually, with a 12.2% increase from 5724 at the same time last year.
Of the 16 regions monitored, only Nelson and the West Coast had an annual decrease in sales, while sales in most were up by at least 5% on last November.
In Auckland, Wellington and Canterbury, sales increased by 12.1%, 14.8% and 12.7% annually, and they were also up by over 10% in all three regions on a monthly basis.
Real Estate Institute chief executive Jen Baird said the trend of slow and steady improvement in market activity had continued now the election was over.
Heading into the more active months in the property cycle, the November figures showed more sales, more new listings, lower days to sell and a sense of more confidence overall, she said.
But median house prices were unchanged nationally, up just 0.1% month-on-month to $790,000, and they were 2.0% lower than at the same time last year.
Median prices in half of the regions monitored were up between 0% and 3.1% on a monthly basis, while the other half had price decreases, although of less than 4%.
Canterbury was the only region where the median price increased annually, with a 5.3% rise to $700,000.
In the Auckland and Wellington regions, median prices were down by 0.8% and 1.1% on last November to $1.05 million and $787,000 respectively.
The institute’s house price index, which smooths out variations that come from sales figures, was up 0.8% from October, but down 0.2% on the same time last year. It remained 13.8% below the 2021 market peak.
Baird said with median prices either largely unchanged or slightly lower annually in a number of regions, for some buyers, now would be the time to act.
“Local agents are reporting steady activity across different buyer groups, with more competition for buyers’ attention in areas where listings have increased.”
Nationwide, new listings were up 5.2% annually to 10,712 in November from 10,185 last year, and increased by 12.4% from October, the figures showed.
The expected lift in the number of properties coming to market and the significant increase in the number sold was a sign of positivity returning to the market, she said.
“Open home attendance numbers and auction room activity have picked up as well in many parts of the country.
“We expect to see the number of properties sold across New Zealand increase in December, as we enter the busier season for real estate and people taking action to sell or buy before the pause at Christmas.”
Baird said that overall sentiment appeared to be more positive, although it did vary by region.
Factors like interest rates continued to impact the market, it looked as though buyers and sellers were heartened by the fact the election was over and the Official Cash Rate was stable, she said.
“Although we will see some slowing over the Christmas period, we anticipate seeing a resurgence of activity from the end of January, as the boost in market positivity helps raise confidence further.”
Trade Me’s latest property price index was also out on Wednesday, and it had the average national asking price on the site rising 0.5% to $864,650 in November.
Average asking prices were up on the previous month in every region, except Hawke’s Bay and Otago.
Trade Me Property sales director Gavin Lloyd said it followed positive increases in every region in October, and it was a good sign to see prices still trending up across the country.
“This will help sellers feel more confident about listing their properties this summer.”
Supply and demand measures were trending up nationwide, and properties were also now selling quicker than they did last year, he said.
The median time for a property to be listed on the site had fallen to 51 days, which was six days less than in November last year.
When homes were selling quickly, it was great for the market, he said. “Fast sales mean there’s a lot of interest and demand, which is good news for both sellers and buyers.”