As we approach summer, market activity is on the rise. In November, the New Zealand property market experienced a wave of confidence, as evidenced by the latest figures from the Real Estate Institute of New Zealand (REINZ).

Buyers are showing increased interest, spurred by the recent reduction in the official cash rate (OCR), prompting more transactions nationwide. At the same time, fewer sellers are bringing their property to market, which is reflected in the nationwide decline in property listings.

REINZ Chief Executive Jen Baird says, “There’s been a shift in market sentiment nationwide in November. After a challenging year, recent data indicates promising signs of increased activity, which we hope will continue into 2025. This is a good time to make transactions, as prices remain stable, and interest rates decrease.”

House sales rise

Nationwide, sales rose by 10.8% compared to November 2023. In New Zealand, excluding Auckland, sales increased by 12.9% year-on-year, with notable gains in Gisborne (+55.6%), Hawke's Bay (+34.4%), and Wellington (+32.3%).

Median prices in New Zealand remained unchanged year-on-year and month-on-month, holding steady at $795,000. Excluding Auckland, the median price saw a slight year-on-year increase of $5,000, rising from $700,000 to $705,000 while remaining stable month-on-month.

Nine out of sixteen areas reported an increase in median prices over the past year, with Southland leading the way with a 17.7% from $440,000 to $518,000, a record high for the region and the first time it has recorded a median price over $500K. Gisborne followed with a 13.4% rise year-on-year to $635,000.

“November saw more life in the property market. Buyers are benefiting from steady prices and increasing options, while sellers in many areas are seeing stronger interest,” adds Baird.

Listings overview

Overall, listings nationally increased year-on-year by 3.9% from 10,712 to 11,129, and New Zealand (excluding Auckland) increased by 7.8% from 6,901 to 7,437 compared to November 2023. Eleven out of fifteen regions reported increases in listings compared to last year. The regions with the most significant increases were Southland (+14.5%), the Bay of Plenty (+14.1%), and the West Coast (+13.6%).

For the first time this year, the number of listings in the market decreased compared to the previous month, with a nationwide decline of 3.8% compared to October 2024. Additionally, listings across New Zealand, excluding Auckland, decreased by 0.4% month-on-month.

Inventory levels are rising, with a national increase of 21.3% year-on-year and a 5.1% increase month-on-month, totalling 33,984.

Baird notes, “November marks the first month in a while that we have seen an increase in demand and a slight reduction in new property coming to market. We expect the summer months to bring the usual upswing in sales activity across the market, this year with both buyers and sellers feeling a little more confident.”

In November, there were 1,209 auctions nationally (16.7% of all sales), a decrease from 20.3% in November 2023. The national median days to sell rose by four to 42 days compared to last year; excluding Auckland, it increased by three to 42 days this month.

The House Price Index (HPI) for New Zealand is currently at 3,638, reflecting a year-on-year decrease of 1.4% but a month-on-month increase of 0.6%. Over the past five years, the average annual growth rate of New Zealand's HPI has been approximately 4.6%. However, it is currently 14.9% lower than its peak in 2021. In November 2024, Southland reported the highest HPI movement, reaching an index level of 4,652, which marks a new high for the region.