PHOTO: FILE
Property listings have surged nearly 30%, reaching levels not seen since 2015. According to the latest Property Report by REINZ, prices have increased by 2.9% over the past year.
The national average asking price is now just under $887,000, marking a $27,000 rise from March of last year.
Central Otago holds the highest average asking price in the country, while the West Coast has the lowest, which surpassed $500,000 last month for only the second time in 17 years.
Realestate.co.nz spokesperson Vanessa Williams told Morning Report that the property market was very suppressed in 2023, with eight of the twelve months having the lowest listings on record for that month.
“There were interest rates, cost of living concerns, and it was an election year. Kiwis don’t necessarily like to transact under uncertain times. Now that we’re past those issues, while interest rates remain high, inflation is coming down, and with the new government in place, we’ve seen a flurry of sellers entering the market.”
Williams noted that average prices had been relatively static for 18 months, fluctuating between $860,000 and $890,000.
She added that lower prices and rule changes from the new government are bringing investors back to the market.
“We might see a bit of both; investors may choose to keep properties due to favorable tax breaks, or we might see an increase in supply because of the bright-line test dropping back to two years.”