Property market adapting to challenges

According to the latest monthly property report from the Real Estate Institute (REINZ), in February 2023 median prices and sales counts have declined at a slower pace, and stock levels are returning to normal. For more on this, check out our property market report.

Weathering the storm: the impact of floods and cyclones

REINZ Chief Executive Jen Baird pointed out that February is usually a fairly active month for the housing market. However, the devastating effects of Cyclone Gabrielle have led to a noticeable drop in sales and listings in affected areas, particularly in Northland, Auckland, Tairāwhiti Gisborne, Hawke’s Bay, Coromandel, and Bay of Plenty. Unfortunately, these regions might continue to feel the aftermath of the cyclone for some time.

Diving into the numbers

Despite a dip in new listings, according to Baird, a ten-year trend analysis confirms that inventory levels are gradually returning to normal. By the end of February, the total number of properties for sale across New Zealand reached 29,083, representing a 25.0% increase year-on-year and a 4.9% growth month-on-month.

In the meantime, the number of residential property sales across New Zealand eased by 31.1% annually, decreasing from 5,750 in February 2022 to 3,964 in February 2023. However, the market experienced a substantial month-on-month increase of 40.4%.

A closer look at regional data

Again, market data paints a mixed picture. Median prices across New Zealand decreased by 13.9% year-on-year to $762,000. However, when comparing to January, the median sale price increased in most regions. Auckland, for example, saw a 7.0% increase, returning over the $1 million price point.

Baird added: “Our seasonally adjusted data shows that when compared to what is typically observed moving from the month of January to the month of February, all regions except Taranaki and Tasman had smaller gains in sales count month-on-month than what would be expected. In other words, even though the sales count change from January to February looks significant, we would typically expect greater increases based on what has been observed historically.”

Like to talk about your mortgage?

Rising interest rates, increased cost of living and difficulties in securing finance are still impacting buyers. But with house prices dropping, there may be opportunities to seize. If you’d like to talk about a mortgage for your first home, or your next home, get in touch. As mortgage advisers, we can help you explore your options and find an appropriate mortgage structure for your needs.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.