Housing stock begins to tighten as demand rises

Property sales volumes in September were almost 4% higher than the same month last year, continuing a steady upwards trend in activity across New Zealand. Cotality said the lift followed a 5% dip in August and marked the 27th increase in the past 29 months, reinforcing the ongoing recovery from the cyclical lows of 2022 and early 2023.

With mortgage rates continuing to edge lower, Cotality said “further growth in sales activity seems likely”.

New listings also remained robust. There were 13,293 new listings in the four weeks ending 5 October, compared to 12,229 in the same period last year and a five-year average of 11,037. 

“New listings activity has remained fairly solid in recent months, at least compared to where it has normally sat during the winter lull and spring lift in previous years,” Cotality said, adding that there was no meaningful evidence that shortening the Brightline Test had triggered a major sell-off by investors.

Total listings on the market reached 27,565 in September, compared to 31,158 a year earlier and an average of 23,460 over the previous five years. Cotality noted that “the total number of properties listed on the market remains relatively high, although the recent lift in property sales is starting to erode stock levels”.

How buyers can work effectively with agents

No matter the state of the market, buyers who want to secure their dream home or investment property should work closely with a trusted real estate agent. Agents have access to listings before they appear on public platforms and can alert buyers quickly when suitable properties become available.

Good communication is key. Buyers should be upfront about their budget, preferred suburbs and non-negotiables so their agent can focus on realistic options. It also pays to get pre-approved finance early – that way, when the right property comes up, buyers can move fast and make strong offers with confidence.

Finally, keeping an open mind about property type or location can make all the difference. In competitive markets, flexibility helps buyers act decisively when opportunities arise.

If you know sellers or buyers who want advice on getting finance in place before they start searching for a property, I’d be grateful if you could refer them to me.