Knowing the property market is vital if you’re looking to buy or sell a house. Below, we share our insights into the Auckland property market for April 2023. Data used is the latest report from the Real Estate Institute of New Zealand (REINZ).
April 2023 National Property Prices
The New Zealand housing market is experiencing a significant downturn, with prices falling in most regions and sales slowing down. The national median price decreased by 10.9% year-on-year to $780,000. Thus, a 7.3% decrease to $700,000 for New Zealand (excluding Auckland).
April 2023 Auckland Property Prices
Auckland’s property market prices have fallen by 15% since the previous year, a higher rate than the 7.3% national average. In April, the median price slipped under the $1 million mark, with a new average of $995,000.
This will disappoint some sellers looking to cash out. However, the impact of lower prices is minimal to non-existent when buying and selling in the same market. For first-home buyers, it’s a good time to get into a property. Remember, you can only know where the bottom of a market dip is after the fact! It is not possible to tell the future. We recommend first-home clients to get into the market when you can. Additionally, focus on finding an affordable property that suits you. Property ownership is a long-term investment and has always gone up over time.
Recent New Zealand Property Market Behaviour
The total number of properties listed for sale across New Zealand increased by 5.9% year-on-year, but sales have been decreasing. The total number of properties sold across New Zealand in April 2023 was down by 15.3% year-on-year and 11.5% month-on-month. New listings also decreased by 18.9%, from 8,806 in April 2022 to 7,142 in April 2023.
Days to sell have risen to 47 days for April 2023. This increase represents up two days from last month and nine days more compared to April 2022.
Auckland Property Market April 2023 Behaviour
Sales in the region have decreased by 23% year-on-year. April’s 43 Days to Sell is higher than the region’s 10-year April average of 35 days. However, the market remains active in some areas, such as Rodney and Auckland Central.
There’s a reported decrease in the number of first-time homebuyers in the market. Interesting given that prices are down. Local real estate agents attribute this to Australia’s immigration changes for Kiwis. However, it’s questionable whether this is really the case as there isn’t yet data to back this theory up. Our take is that the more likely major factors are:
- Higher interest rates and,
- A reluctance to buy until the bottom of the market is reached.
In summary:
- Overall, prices are still falling, and sales are still slowing down.
- This reflects the uncertainty surrounding both local and global economies, as well as barriers to securing finance, concerns about interest rates and a fear of overpaying.
- None of this is new; the property market is cyclical, and this is just one phase of the repeating cycle.
- A market correction was always expected to balance out the extreme increase in house prices over the last couple of years, and economists foresee the market price stabilising in the near future.
So, whether this is the time to buy comes down to your specific circumstances, priorities and plans. If you want mortgage advice and support, please get in touch; we’re here to help!