Key Facts

  • October recorded a slow but steady improvement in the housing market, as reported by the Real Estate Institute.
  • The house price index was up 1.1% month-on-month and down 2.5% on the year before.
  • Price increase was recorded in Auckland (1.3%), Hastings area (1.8%), and Napier (2.4%).
  • There were 2.5% fewer sales as compared to September, but 8% more than in October 2022.
  • Nationally, prices are still 14.6% lower than their peak, with Wellington and Auckland at a 22.6% and 19% dip respectively.
  • Otago and Southland are closest to their previous peaks, at 4% under.
  • House prices are still up 5.8% over five years, despite the dip.
  • The number of new listings on the market was up 2.6% year-on-year, and up 21.9% compared to September.

Article Summary

The Real Estate Institute reported a gradual advancement in the housing market in October, but emphasized that sizable recovery is required in many regions to approach their previous price levels. The house price index highlighted a 1.1% rise month-on-month and a downtrend of 2.5% compared to the previous year in New Zealand.

Growth was observed in Auckland, the Hastings area, and Napier. Meanwhile, sales dipped by 2.5% from September, but surged by 8% compared to October 2022. Unfortunately, current national prices are still 14.6% below their peak. Wellington and Auckland are lagging even further, at 22.6% and 19% respectively. Otago and Southland were closest to recovering, being just 4% under their previous peaks.

During the pandemic, house prices mushroomed by 40% before the downturn struck, thereby jeopardizing the deposits of recent buyers in case of a selling necessity. Nonetheless, over a span of five years, prices have inflated by 5.8%. New listings have experienced a 2.6% year-on-year rise and increased by 21.9% when compared to September.

The Institute’s chief executive Jen Baird noted increased activity across buyer groups and an upswing in vendor confidence post the elections, all of which isn’t anticipated to drastically influence market conditions. The institute stressed the impact of high interest rates, cost of living pressures, and the post-election situation on the market, while also maintaining a positive outlook due to signs pointing towards an improving market.

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