New Zealand's Housing Market: Rising Sales and Hopeful First-Home Buyers in June 2023
The New Zealand property market, renowned for its resilience, has shown some intriguing trends this winter. Contrary to typical expectations of a seasonal slowdown, June 2023 emerged as a month of remarkable activity.
Unexpected June Momentum
According to the Real Estate Institute of New Zealand (REINZ), despite winter's traditionally muted sales, the property market this June displayed a surprising uptick.
A staggering 5,629 properties found new owners across New Zealand in June 2023, marking a robust 14.6% growth when juxtaposed against June 2022. Exclude Auckland from these statistics, and the rise is even more profound, standing at 17.4% year-on-year.
Property Prices: A Mixed Bag
While sales soared, the median property price narrative painted a diverse landscape. Nationally, there was an 8.2% dip year-on-year, bringing the median down to $780,000. However, regions like West Coast and Tasman stood out, registering annual upswings in their median property prices.
Reduced Listings amidst Sales Surge
An intriguing aspect of this market dynamism is the drop in new property listings. By the end of June, properties available for sale nationally totalled 24,676, which is 6.1% less year-on-year and a 7.5% drop from the previous month.
REINZ Chief Executive, Jen Baird, highlighted, “Increased year-on-year sales, juxtaposed against a month-on-month dip, underline the dwindling inventory, fewer new listings, and a heightened sales velocity.”
First-Home Buyers: A Silver Lining
Baird also emphasized an uplifting trend in these figures – the pronounced engagement of first-home buyers. The relaxation of LVR restrictions on 1 June catalysed a surge in property viewings.
However, Baird's optimism is measured. “Even though we witness a spike in activity, it's prudent to exercise caution. Variables like interest rates, the impending elections, and the cost-of-living concerns could influence future decisions,” she remarks.
The Future of New Zealand's Property Market
Baird concludes, “A paucity of listings and the challenge of steering through the current economic waters are stressing the market. While some predict turbulence ahead, property transactions are very much alive, underpinning the enduring nature of housing choices.”
Whether the property sector will keep surprising us this winter or succumb to economic challenges remains to be seen.
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Disclaimer: The insights shared in this article aim to provide a general overview. While we strive for accuracy, the content might undergo changes, and might not encapsulate the latest trends or individual scenarios. Before basing any decisions on this information, please seek personalized advice.