PHOTO: REINZ Chief Executive Jen Baird
New Zealand Real Estate Market Wrap-Up: December 2024 Ends on a Quiet Note
Published: Wednesday, 22 January 2025 | Source: REINZ
As 2024 drew to a close, the New Zealand property market experienced a slower-than-expected December, according to data from the Real Estate Institute of New Zealand (REINZ). The month reflected seasonal norms, but broader trends reveal shifts in buyer and seller behavior that shaped the year.
December 2024: A Closer Look
REINZ Chief Executive Jen Baird remarked on the subdued nature of the market during the festive season. “December is traditionally a quiet month for real estate. However, this year saw a sharper dip in activity, with sales counts down 27.4% compared to November 2024 and up just 1.8% year-on-year. When adjusted for seasonal effects, the slowdown was more pronounced than usual, signaling a quieter-than-expected month.”
Sales Figures in December
- Nationwide sales rose 1.8% compared to December 2023, increasing from 5,420 to 5,518 transactions.
- Sales outside Auckland saw a higher year-on-year increase of 3.8%, rising from 3,838 to 3,984.
- Regional standouts:
- Taranaki: +24.3%
- Waikato: +15.9%
Price Movements: A Mixed Bag
The national median house price experienced a slight dip, falling 0.6% year-on-year to $775,000. Month-on-month, the median dropped 1.8% from $789,000.
- Excluding Auckland, the median rose 1.4% to $710,000.
- Eleven of 16 regions saw year-on-year price increases, with the West Coast leading (+24.3%), followed by Nelson (+10.6%).
- Notable price declines were observed in some areas, reflecting localized market conditions.
Jen Baird highlighted, “Buyers had ample stock to choose from, and many anticipated further interest rate reductions, reducing urgency in the market during December. First-home buyers and owner-occupiers continued to dominate, benefitting from improved affordability in select regions.”
New Listings and Inventory
Nationally, new listings in December 2024 decreased by 1.3% compared to December 2023, dropping from 4,828 to 4,767.
- Excluding Auckland, listings fell by 1.2%, from 3,436 to 3,394.
- Some regions experienced notable increases in new listings:
- Gisborne: +36.8%
- Nelson: +33.1%
- West Coast: +32.1%
Despite fewer new listings, overall inventory levels rose by 18.5% year-on-year to 29,478 properties. However, inventory dropped 13.3% from the previous month, reflecting the seasonal slowdown.
Days to Sell and Auctions
- The national median days to sell rose to 42 days, six days longer than December 2023.
- Auctions accounted for 12.9% of all sales in December, down from 13.7% the previous year.
- Auckland: 21.3% of sales were by auction, compared to 25.0% in December 2023.
- Canterbury: A slight uptick, with auctions representing 20.0% of sales, up from 15.0% in December 2023.
House Price Index (HPI)
The national House Price Index (HPI) fell by 1.1% year-on-year to 3,610, marking a continued decline from its 2021 peak. Over the past five years, the HPI has grown at an average annual rate of 4.4%, underscoring the broader resilience of the market despite recent softening.
Regional Highlights: A Year in Review
As we reflect on 2024, several regions stood out:
- West Coast: Median prices soared 24.3% year-on-year to $430,000, matching its record high from April 2024.
- Nelson: A 33.1% increase in listings supported a 10.6% rise in median prices.
- Taranaki: Robust sales growth and rising inventory signaled heightened activity in the region.
In contrast, Auckland and Wellington markets faced challenges, with slower sales and limited price growth reflecting changing buyer preferences.
The Road Ahead for 2025
Looking forward, the real estate market in New Zealand is poised for a dynamic year. Buyers and sellers alike will navigate evolving conditions, influenced by interest rate movements, inventory levels, and regional disparities.
As Jen Baird aptly summarized, “The New Zealand property market remains resilient, with pockets of opportunity for buyers and sellers. While December 2024 ended quietly, the year set the stage for a fascinating 2025 in real estate.”
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