NZ house Prices


Elevated mortgage rates are exerting pressure on the housing market, leading to uneven sales activity, as indicated by recent data.

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New statistics from CoreLogic reveal that January witnessed the “second lowest” level of property sales activity in the past 40 years.

With 3,169 sales recorded in January, this figure marks only a 2% increase from January 2023, which saw 3,108 sales – the slowest start to a year since 1983.

Kelvin Davidson, Chief Property Economist at CoreLogic NZ, noted that “January’s sluggishness in sales is a timely reminder that the housing market is still contending with considerable mortgage rate pressure.”

However, Davidson expressed optimism, pointing out a “gradual upturn” underway, with sales volumes consistently rising compared to the same period the previous year for the past nine months.

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Davidson highlighted a 4.5% year-on-year increase in January sales, totaling more than 67,000, up from April figures which stood at less than 62,000. Nevertheless, he emphasized that sales remained “well below ‘normal’ levels of 90-95,000 per year.”

Regarding listing levels, Davidson suggested that they have returned to a semblance of normality, indicating that the recent decline in sales might reflect uncertainty in buyer demand rather than a shortage of options.

Over the twelve months leading up to January, main centers experienced a 5% increase in sales, while provincial markets saw a 3.6% rise.

Davidson speculated that February could witness a rebound in activity following the weaker-than-expected performance in January.

He remarked, “It’ll be interesting to see how sales and listing activity evolves in the next month or so and how market confidence moves too. We suspect the demand would be there to match any additional supply coming onto the market, resulting in an associated rise in agreed sales activity as buyers can see more choice.”