PHOTO: FILE
A property market recovery is anticipated in 2024 by an expert in the real estate industry, following a corrective phase in the previous year.
In the preceding year, house prices witnessed a decline, marking the first decrease in a decade. According to realestate.co.nz, the average national asking price dipped below $900,000. The total value of listed homes exhibited a significant drop of $28.6 billion compared to 2022.
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Sarah Wood, the Chief Executive, acknowledged 2023 as a correction year but highlighted the current resurgence in the market. She stated, “In the first 22 days of January, we’re observing a robust influx of properties onto the market.” Wood emphasized the positive shift in demand, with property searches on their site increasing by 8 to 10 percent, indicating heightened interest and activity in the market.
However, realestate.co.nz data revealed a substantial 22.8 percent decrease from the previous year in the total value of listings, dropping from $125,601,880,575 in 2023 to the previous year.
Wood explained the decline, stating, “It was evident that those not compelled to sell property in 2023 refrained from doing so. Similarly, attention-grabbing headlines about falling prices likely deterred opportunistic sellers, who anticipated better market conditions.”
In 2023, all 19 regions on the website reported fewer new listings compared to 2022. Despite low supply, only three regions experienced price increases.
Wood noted, “In a year marked by uncertainty surrounding economic conditions, ongoing interest rate hikes, and a cost-of-living crisis, it’s unsurprising that fewer New Zealanders opted to list their homes for sale last year.”
The data unveiled the resilience of the Queenstown and Central Otago market, setting a record average asking price of nearly $1.6 million. Only West Coast, Central Otago/Lakes, and Marlborough witnessed year-on-year average asking price growth in 2023.
While the West Coast registered the largest increase at 6.1 percent, it remained the sole region with an average asking price below $500,000, at $467,361 in 2023. Central Otago/Lakes had been on an upward trend since the beginning of 2022, with demand sustained by significant offshore interest.
Auckland, Wellington, and Coromandel were the regions experiencing the most significant drops in asking prices in 2023, declining by 9.5 percent, 9 percent, and 6.8 percent, respectively. Wood attributed Coromandel’s position in the top three to weather events that impeded parts of the region for several months during the year.