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The Real Estate Institute of New Zealand’s (REINZ) February 2023 figures show a lesser rate of decline in annual median prices and sales counts, with stock levels returning to normal levels.
REINZ Chief Executive Jen Baird, says the impact of ongoing economic headwinds and Cyclone Gabrielle is reflected in the numbers, but some data in the housing market returns to ‘normal’ amidst a big clean-up job across the upper north and eastern North Island.
“February traditionally shows a reasonable month of activity but the impact of extreme and devastating weather over the start of 2023 is certainly showing in the data with sales and listings significantly down in affected areas. We may continue to see this for some time in parts of Northland, Auckland, Tairāwhiti Gisborne, Hawke’s Bay, Coromandel and Bay of Plenty.”
Auckland’s listings were down 36.9% from 4,365 to 2,755 year on year, and Tairāwhiti’s down 54.4% year-on-year from 68 to 31 new listings. Nationally, new listings decreased by 29.5%, from 11,545 listings in February 2022 to 8,143 listings in February 2023.
“Even though new listings are down as communities respond to the weather and the anticipation of economic adjustments ahead, inventory levels are now showing a return to standard levels after a few years at historically low levels.
“When we looked at the trend over a ten-year period, we can definitely see the return to normal stock levels,” suggests Baird.
At the end of February, the total number of properties for sale across New Zealand was 29,083, up 5,813 properties (+25.0%) year-on-year, and up 4.9% from 27,732 month-on-month. New Zealand excluding Auckland was also up from 13,253 to 18,656, an increase of 5,403 properties (+40.8%). Month-on-month, inventory was also up 4.9% from 17,781 properties. This means there is plenty of choice for buyers in the market today.
The number of residential property sales across New Zealand eased annually by 31.1% from 5,750 in February 2022 to 3,964 February 2023. Month-on-month there was an increase of 40.4%.
Across New Zealand, median prices decreased by 13.9% year-on-year to $762,000. However, when comparing to January, the median sale price increased across most of the regions. Auckland saw a 7.0% increase, tipping back over the $1 million price point.
Median days to sell were at 60 days for February 2023 — up 18 days annually compared to February 2022 and had a small increase of 6 days from 54 when compared to January 2023.
“Our seasonally adjusted data shows that when compared to what is typically observed moving from the month of January to the month of February, all regions except Taranaki and Tasman had smaller gains in sales count month-on-month than what would be expected. In other words, even though the sales count change from January to February looks significant, we would typically expect greater increases based on what has been observed historically.”
Rising interest rates, increased cost of living and inability to secure finance are still having an impact on buyers, but REINZ members are telling of returned activity at open homes in areas that weren’t as impacted by Cyclone Gabrielle,” add Baird.
The REINZ House Price Index (HPI) for New Zealand which measures the changing value of residential property nationwide showed an annual decrease of 14.2% for New Zealand and a 12.3% decrease for New Zealand excluding Auckland. This is a small increase from last month, 0.1% and 0.3% respectively.
The Real Estate Institute of New Zealand (REINZ) has the latest and most accurate real estate data in New Zealand.
For more information and data on national and regional activity visit the REINZ’s website.
Media contact:
Laura Wilmot
Head of Communications and Engagement, REINZ
Mobile: 021 953 308
[email protected]
Fact sheet
National highlights
- Cyclone Gabrielle has resulted in a slowing of activity in affected areas over the summer months.
- Median prices eased across the country by 13.9% year-on-year to $762,000. For New Zealand excluding Auckland, median prices were down 11.5% to $692,000.
- Sales counts eased across the country by 31.1% annually. The number of residential property sales across New Zealand increased month-on-month by 40.4%
- Inventory levels are returning to a more normal level, but new listings have eased as people respond to economic conditions and the impact of extreme weather. Nationally, there was a 29.5% decrease of new listings from 11,545 in February 2022 to 8,143 new listings in February 2023 and an increase of 22.5% compared to January 2022.
- The median number of days to sell a property in February was 2023 was 60 — 18 days longer than in February 2022.
- The REINZ House Price Index (HPI) for New Zealand showed an annual decrease of 13.8% in the value of residential property nationwide — a 0.2% increase compared to January.
- At the end of February 2023, 29,083 properties were available for sale across New Zealand — an annual increase in inventory of 25.0% for New Zealand. For New Zealand excluding Auckland, there was an annual increase of 40.8% (from 13,253 to 18,656 properties).
Regional highlights
- Whilst prices continue to ease annually, most regions saw an uptick in median price month-on-month (usual for a February), with Auckland seeing a 7.0% increase tipping it over the $1m price point once again.
- Tairāwhiti, Taranaki and West Coast were the only regions that had a decrease in month-to-month median sale price of-14.8%, 9.1% 17.4% respectively.
- Tasman had the largest increase in the median sale price month-to-month, up 9.7%.
- Median sales prices in the regions for February (year-on-year) have dropped (except Marlborough).
More information on activity by region can be found in the regional commentaries visit the REINZ’s refreshed website.
Median Prices
Our two biggest cities have seen ongoing declines in year-on-year median prices for the beginning of 2023.
There were no record median prices at the regional level this month.
There were two territorial authority record median prices this month (Clutha District and Central Otago District, both in the Otago Region).
Thames-Coromandel District and Hurunui District are the territorial authorities with the most record months in the past 12 months (4) and 22 territorial authorities have had no median price records in the past year.
Sales Count
February 2023* recorded the lowest sales count in:
- Auckland and Marlborough since December 1995
- Wellington since June 2008
- Bay of Plenty, NZ, and NZ Excl. Auckland since October 2010
- Hawke’s Bay since April 2011
- Canterbury since September 2012
- Manawatu-Whanganui since December 2013
In addition to the above, in terms of the month of February, this February saw the lowest sales count in:
- Canterbury, Northland and Waikato since 2011
- West Coast since 2017
- Tasman since 2022 (i.e., last year)
- All other regions since records began.
*Excluding the month of January and the two lockdown-affected months of April 2020 and May 2020
All regions’ sales counts (except for Tasman) dropped since February 2022 and all the regions had an increase on January 2023.
Days to Sell
All regions except for Tairāwhiti, West Coast, Tasman and Otago had an increase in median days to sell since last month and all regions had an increase in median days to sell since February 2022.
February 2023* had the highest median days to sell in:
- Wellington since records began
- Hawke’s Bay since January 2009
- Auckland since February 2009
- Nelson since August 2010
- NZ and NZ Excl. Auckland since February 2011
- Waikato since February 2012
- Northland since February 2013
- Marlborough since August 2014
- Taranaki since January 2015
- Manawatu-Whanganui since February 2015
- Southland since July 2015
- Canterbury since February 2019
- Bay of Plenty since June 2020
In terms of the month of February, February 2023 had the highest median days to sell in
- Hawke’s Bay, Nelson and Wellington since records began
- Tasman since 2006
- Auckland since 2009
- NZ, NZ Excl. Auckland, Marlborough and Otago since 2011
- Bay Of Plenty, Taranaki and Waikato since 2012
- Northland since 2013
- Manawatu-Whanganui and Southland since 2015
- Tairāwhiti since 2017
- Canterbury since 2019
- West Coast since 2020
* Excluding the month of January and the two lockdown-affected months of April 2020 and May 2020
House price index (HPI)
Wellington now has sixteen months in a row of being in the bottom two ranked regions (last fifteen as worst-ranked) for the year-on-year HPI movement.
New Zealand, New Zealand excluding Auckland, Manawatu-Whanganui and Nelson/Marlborough/Tasman/West Coast saw their largest year-on-year drop in HPI since records began.
Bay of Plenty had its second largest year-on-year drop in HPI since records began.
Taranaki and Wellington regions had their third largest year-on-year drop in HPI since records began.
Southland is the top-ranked HPI year-on-year movement this month. Otago is second and Taranaki is third.
Inventory
Five of 15 regions (33.0%) had at least a 60.0% year-on-year increase in inventory.
One region (Wellington) had less inventory than they had one year ago.
Listings
All but one region (Nelson) has had a decrease in listings since February 2022.
80.0% of the regions have had listings decrease by more than 15.0% year-on-year (47.0% have had a drop of more than 30.0% YOY).
Inventory and listing data come from realestate.co.nz.
Auctions
Nationally, 11.7% (464) of properties were sold at auction in February 2023, compared to 21.7% (1245) in February 2022.
New Zealand excluding Auckland saw 9.2% of properties (269) sell by auction compared to 17.2% (683) the year prior.
More information on activity by region can be found in the regional commentaries visit the REINZ’s website.