PHOTO: FILE
The New Zealand property market is poised for dynamic shifts in 2024, influenced by various factors. According to housing market predictions, the average property value in New Zealand hit a low in July 2023 after a significant decline from its peak in February 2022[1]. Projections from the Reserve Bank anticipate a 5.20% increase in house prices by December 2024[2].
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However, there is a notable disparity among banking institutions regarding their 2024 house price predictions. While some banks forecast a robust 7.7% increase, others, like ASB, predict a more conservative 2.5% rise[3]. The consensus among these predictions is that New Zealand’s housing market will experience a resurgence in 2024, driven by consistent supply shortages and rate cut forecasts[4][5].
As we assess the prospects for the housing market in 2024, signs indicate that the property market concluded 2023 on a strong note[6]. With a combination of economic factors and market dynamics, New Zealand’s property market is poised for an interesting and potentially lucrative year ahead.
KEY POINTS WHY WE WILL SEE MORE HOUSE SALES & PRICE INCREASES IN 2024:
- Mortgage interest rates will come down
- Immigration net gain figures whilst will be lower we will still see more people arriving than departing
- National government policies helping landlords
- Building costs are still rising despite some commentator saying they are not which will only push buyers toward second hand stock and thus inflate demand
- oneroof.co.nz – 12 housing market predictions for 2024
- opespartners.co.nz – House price predictions (2024)
- oneroof.co.nz – Why are the banks’ 2024 house price predictions so far apart?
- devere-newzealand.nz – New Zealand house prices to increase again in 2024
- squirrel.co.nz – Four reasons why house prices are expected to rise throughout 2024
- corelogic.co.nz – Property market signs off 2023 on a strong note