REINZ optimistic about conditions moving into 2025

The Real Estate Institute of New Zealand (REINZ) has detected growing stability in the real estate market this spring.

REINZ Chief Executive Jen Baird said that while the market remained subdued, there had been a noticeable rise in confidence that conditions would improve in the coming months.

 

Furthermore, many believed that lower interest rates would lead to a gradual recovery in the property market as we moved into 2025.

 

“After the Reserve Bank reduced the OCR by 50 basis points to 4.75%, the market is expected to see more activity from those who are ready to buy, reinforcing the optimism in the market, and this will likely be reflected in the coming months’ property reports,” she said.

 

The national median price for September was $781,000, which was up 2.1% month-on-month but down 2.3% year-on-year.

 

“The signs across the country are largely of stability with slight decreases year-on-year, and the median price increase of 2.1% compared to August a slight improvement. Even though we are seeing another year-on-year decrease, this is in line with what we expect this time of year so the market is doing what we would expect, another sign of stability,” Ms Baird said.

 

Meanwhile, a total of 5,816 properties were sold in September, which was 3.3% less than the month before and 1.1% less than the year before.

 

There were 30,028 properties listed for sale in September, which was 1.5% higher than the previous month and 27.4% higher than the previous year.

 

“Local salespeople around the country have noted an increase in buyers attending open homes, more so than the usual spring lift we see each year. With some regions now seeing an uplift in sales (seven out of 16 regions), buyer engagement is improving, with listings receiving more enquiries. These trends could lead to a more robust market in the coming months, particularly if expected improvements in market activity and reductions in interest rates eventuate,” she said.

 

I can help your clients

 

With prices remaining stable in many parts of the country, more stock coming to market and interest rates trending down, conditions are looking good for buyers.

 

Are any of your clients thinking about buying in late 2024 or early 2025? If so, I’d appreciate an introduction.

 

It’s important they get pre-approved before they start their property search, so they can get certainty around their budget. I’d love to help.