November was a month of ups and downs for the residential property market, with sales up, but not everywhere, and prices flat, but not everywhere.
The number of properties sold usually increases between October and November and so it was this year, with the Real Estate Institute of NZ reporting 7233 residential sales throughout the country in November. That was up 3.2% compared to October.
However, it was different story in the country's largest property market, with sales in Auckland declining by 1.5%.
Excluding the Auckland figures from the national total, sales around the rest of the country rose 5.5%.
That is perhaps not so surprising because the Auckland market has been particularly weak for several months thanks to an especially generous supply of properties for sale in the region.
On the price front, the national median price was completely flat at $795,000 in November, unchanged from October and from November last year.
But in Auckland, November's median price of $1,038,000 was up 3.8% compared to October, but still down 1.2% compared to November last year.
The REINZ House Price Index (HPI), which is widely regarded as the more accurate indicator of market price movements, increased 0.6% nationally between October and November, but was down 1.4% compared to November last year.
Around the main centres, the HPI was up in November compared to October in Auckland 1.2%, Hamilton 0.4%, Tauranga 0.7%, and Christchurch 0.3%, was unchanged in Wellington and declined 1.0% in Dunedin.
'After a challenging year, recent data indicates promising signs of increased activity, which we hope will continue into 2025," REINZ Chief Executive Jen Baird said.
"This is a good time to make transactions, as prices remain stable and interest rates decrease," she said.
Median price - REINZ
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Volumes sold - REINZ
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REINZ House Price Index - November 2024
82 Comments
In terms of house prices, Auckland tends to lead the pack when the market moves into recovery mode. Other regions typically follow Auckland ......
Note that the number of dwellings for sale in Ponsonby, Freemans Bay, St Marys Bay and Herne Bay has gone into sharp decline in recent weeks.
TTP
Sales volumes returning to normal, interest rates lower, prices stopping decreasing and even increasing in most regions.
Last chance to buy before a steady increase back to 2022 prices over the next couple of years.
I know people with very decent budgets, around the $700K mark struggling to get unconditional already, the competition is increasing.
New listings continue to hit record highs with no slowdown in sight. Thousands of withdrawn listings from 2022/23/24 are still being put back on the market.
My prediction for the first quarter of 2025 will be an absolute avalanche of new listings. Breaking all previous records for the period.
I went to the bank yesterday for a loan to buy a house. The bank didn't ask about price, how much of a loan I needed or how much deposit I had, they just wanted to know how many listings. Actually they said we will charge you 10% interest of the number of listings in the area. Amazing !
Starrider
Your comments today are utter rubbish.
For example current stock are not record highs - between 2007 and 2016 they were considerably higher - and in 2010 they were twice current numbers.
Yes, they are up compared to the last few years but no need to make such exaggerated claims.
That is not the figures I am seeing. I keep a separate track of trademe listings and Auckland in particular is at record levels of listings. Plus TM has 3,800 new build homes listed, and I would argue that when someone has 10 townhouses to sell they list one. So the 3,800 new builds could be 10,000 listings alone.
Ex Socialist
My data is based on REINZ data (and as used by ANZ). I wouldn’t put too much weight on TM historical data; it is only within recent times that REA are using TM to the extent that they are currently doing so and for a period boycotted TM over their fees.
Been hearing some rumours about why Auckland central houses and upper north shore prices are increasing disproportionately. Looks like watercare’s wastewater network constraint is swaying investors into areas where development is still possible (Auckland central/upper north)
Apparently lots of consents are being denied now, so a supply shortage could be looming in the future.
https://www.oneroof.co.nz/news/watercare-blindsides-auckland-developers…
Developers paid a premium for these developable sites, he said, so if it could not go ahead then he would have to sell it at a loss.
He said most people who had a development site in the red zone would not be able to hold them for 10 years because it would not make financial sense.
“They would have lost money on the value of the site plus they would have lost all of the expenses they have spent on the resource consent including council fees and the like.”
Alexander said it should have been a two-year lead-in so there was a transition period rather than putting a blanket ban on development in some areas without any warning.
“Basically it creates this massive uncertainty and Watercare all of a sudden become the master of where development can or cannot occur in Auckland.
“What council entity can justifiably do this sort of thing that just blindsides a complete industry.”
The answer is
- Higher developer contributions
- Higher Water care bills
- Higher Rates
All these reduce yield or returns
Milldale has serious water issues, low pressure and sewage problems, there was talk of an additional levy on all property owners, not sure what legal basis this could be applied.
It seems that Mayor Brown has managed to offload Watercare's need for further funding off the Councils books
Well played that man.
I understand that no new building consents are being issued in that area for at least another 5 years. Shouldn't think existing home owners are going to get whacked more money, they already have their own independent pumps and holding tanks which must have cost a small fortune to install and they are very expensive to get repaired and cleaned.
" if a new mayor is brought in who can actually manage the city"
Not how it works in most Councils, Rookie. The mayors sets the goals & direction but the actual management is done by the CEOs. Most Council CEOs are paid exceedingly well but keep their heads down so we frequently never hear from them. But I'd put good money them be pretty influential in everything you hear from mayors.
The council appoints the CEO. Wellington have just replaced theirs.
https://wellington.govt.nz/news-and-events/news-and-information/our-wel…
Lets look at the big picture and consider the house prices index over the last five years being. This is plus 4.6% for NZ, being dragged down by Auckland which is 3.1% over the same period. Lots of crowing by the usual leveraged suspects.
You do realise that inflation in the same five year period was 23%. #notwinning.
Yes, and for those who think house prices double every ten years - the next five years are going to have to be spectacular.
I think house prices are going up at a little less than inflation. So if you take the covid bump out and think about 3% per annum since 2018 it is pretty close to current market levels.
The spin v the reality in the Auckland Market for 2025:
New listing when actually Relisted for the 3rd time
A balanced market when actually so much stock that will take years to sell
Busy open homes like bees around honey - actually all conditional buyers that can't sell their houses
Interest rates dropping v currently still an increasing average interest rate on existing loans with average interest rates dropping less than you would expect
Increased buyer confidence v fraigle and weary of paying too much
Do not see the point in continuing to put housing down without anything constructive as to where people should invest!
The reality as I have said previously that the housing market is not just Auckland, and you need to get out more and see where the more clever investors are actually making good money and I am not talking new apartments!
At the end of the day we all make our own financial decisions that determine our position.
I can assure you that there is opportunities in every market snd location and you need to seize them if you are in a financial position to do such.
Whether you do is a matter of mindset and if your mindset is like so many on here is, then yes sit rhere snd do nothing and let the good investors take them up.
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