The national housing market is showing signs of recovery, with house sales experiencing a significant rise in February, according to the latest figures from the Real Estate Institute of New Zealand (REINZ).
After a slow start to the year, with subdued sales in December and January, February saw a marked improvement. The total number of house sales nationwide in February reached 6,287, reflecting a 59.5% increase compared to January’s 3,941 sales. Sales were up in all 16 regions monitored, with increases of more than 30% in each area.
On an annual basis, sales were up 3.4% from February 2024, with nine of the 16 regions reporting annual increases of over 5%. Taranaki and the West Coast experienced the biggest annual sales growth, with increases of 22.2% and 20.6%, respectively.
However, the national median price for houses saw a slight decline, dropping by 2.4% to $772,000 in February from $791,000 a year earlier. Despite this, six of the 16 regions reported annual price increases, with West Coast and Southland leading the way, up 16.3% and 9.2%, respectively.
In major urban centers, Canterbury saw a modest price increase of 0.3% to a median of $707,000, while Auckland and Wellington experienced price drops of 0.5%, with medians of $1.01 million and $795,000, respectively.
Rowan Dixon, acting chief executive of REINZ, noted that while sales had generally increased from January to February, seasonal trends revealed that adjusted sales were 12% higher than anticipated. He highlighted that there has been growing activity in the market, with strong attendance at open homes and auction numbers on par with February 2024.
“These are encouraging signs for a positive and confident market ahead,” Dixon said.
Despite the rise in sales, the national median days to sell a property increased by three days from the previous year, reaching 54 days in February. This indicates that while activity is increasing, buyers remain less urgent due to an ample supply of homes.
The overall housing market’s stability is further reflected in inventory levels, which rose by 10.2% from January and 13.6% from the previous year, totaling 29,478 homes available nationwide. However, new listings dropped by 3.6% compared to February 2024.
Dixon emphasized that many vendors are adjusting their prices to align with current market conditions, contributing to the overall stability.
The figures from REINZ align with CoreLogic’s latest Home Value Index, which also points to the end of the market’s “mini downturn.” CoreLogic reported a 0.3% increase in national house prices in February, marking the first meaningful price increase in over a year. However, experts caution that any future upturn in the market is likely to be more muted than in previous years.
While the market is showing signs of improvement, analysts are closely watching how factors like the supply of homes and the broader economic landscape will influence the housing market moving forward.
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