"Activity has lifted, but overall, the market is softer and slower this summer. Nonetheless our offices in different parts of the country are reporting some stabilisation as well as pockets of positive results," says Tim Kearins, Owner of Century 21 New Zealand.
Mr Kearins' comments follow REINZ releasing its Monthly Property Report for December – a month which saw median house prices across New Zealand decrease 12.2% annually. At $790,000, the national median house price is down from $900,000 in December 2021. Month-on-month saw a 2.2% decrease compared to November.
"If you're a prospective vendor, don't write off selling this summer. Plenty of good properties are still making good money, Kiwis always need to shift, and buyers are busy trying to lock in a mortgage rate before the Reserve Bank has another review in late February," says Mr Kearins.
The Reserve Bank will review the Official Cash Rate on 22 February. In its last review in November, it hiked the OCR by 75 basis points, taking it to 4.25% - its highest level since 2008. It has forecasted a peak of 5.5% this year.
REINZ said: 'Prices continue to ease but the pace of the decline is slower, and the market has settled at its new pace… Salespeople around the country say sellers are tending to be more realistic and will usually meet the market through negotiation - although it's taking longer to sell, sellers are still getting results.'
Across New Zealand, the number of residential property sales decreased month on month by 23.6% and was down 39% compared to December 2021.
"Vendors also need to weigh up the Reserve Bank's talk of a recession, a likely winter of discontent, followed by a general election which halts a lot of activity. This summer is arguably the best opportunity for both buyers and sellers to make a reasonably positive move in the foreseeable future," says Tim Kearins.
Mr Kearins says with the next OCR decision not until 22 February, the coming weeks represent a period of interest rate stability.
"Also helping buyers is that vendors are getting more realistic, with significantly more stock for buyers to choose from. Vendors are dead keen to sell up and not go into autumn with a faded 'for sale' sign on their front fence. At the same time, buyers are keen to lock in an interest rate while they're still manageable and securing finance is still achievable.," says Mr Kearins.
At the end of December there were 26,057 properties available for sale across New Zealand — an annual increase in inventory of 55.3%.
"If you're contemplating buying or selling, a good real estate agent will tell you where the opportunities are this summer. Don't leave your run too late," says Tim Kearins.