ANALYSIS: How long does it take to sell a house in New Zealand? A look at some of the recent auction reports on OneRoof and you'll be astonished to find some sellers are finding buyers within a 24 hours of their home hitting the market. Those lucky people are obviously the exception. Figures from the Real Estate Institute of New Zealand show the median number of days to sell has been tracking upwards since February, hitting 50 in August (in Auckland it’s 51).
That feels like a long time. Fifty-odd days is a lot of open homes to contend with, although the nationwide average since 2010 is a shorter 38 days to sell.
But the stats don’t tell the whole story. They only cover the time period from when the listing goes live to when the sales agreement is signed. The reality of selling houses in New Zealand is more complicated, as the following timeline shows.
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1. Getting your house ready for sale
Before your listing goes live and the sale sign goes up outside your home, there’s at least two weeks of groundwork to be done.
If you don’t already have a real estate agent in mind, you’ll need to find one. You’ll interview agents, get a few appraisals, and give them time to research and inspect your property.
Even after you choose an agent, you still need to get your property ready for sale. That could be a quick tidy up of the house and garden, but for most people presentation takes time, especially if you need to arrange professional staging.
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You’ll also need to set aside time to get the photos and videos done. This part doesn’t usually take long, but if the weather doesn’t play ball, expect your agent to push back the launch date. (Bad photos could mean your property takes even longer to sell so, it really is better to wait for a sunny day.)
The timeline can stretch out further if your agent recommends you get a builders report, or advises you do some touch-ups to the property.
If you’re a property investor and you’re selling a rental home, you may need to give your tenants notice to move out. That can add another 90 days if your tenants are on a periodic lease. Or, you may need to wait until their fixed-term tenancy ends. Remember, it’s usually easier to sell such properties with vacant possession.
2. Time on the market
Once you’ve listed your home you are at the mercy of the market. It’s worth noting that the days-to-sell figure quoted above is the median, so there will be properties that find a buyer in less time and properties that take longer to sell. And each region is different. The median days to sell for Northland in August was 71 days while in Southland it was 37.
Opes Partners economist Ed McKnight: "Bad photos could mean your property takes even longer to sell so, it really is better to wait for a sunny day." Photo / Fiona Goodall
The temperature of the market also matters. For example, when the market was hot in early 2021, the median days to sell in New Zealand was 28 days.
Property type has a bearing as does the month of the year. Higher-end properties can take longer to sell because there are fewer buyers who can afford those homes, while properties hitting the market in December can expect lengthier waits, as buyers tend go away over Christmas.
And it’s worth noting that the sales data only pertains to properties that have sold. In reality, about a third of properties listed never sell. So there is the potential that your home sits on the market for much longer.
3. Getting the money
Even after you sell, it takes time for the money to hit your account. This usually happens within 20 working days (four weeks).
All things considered, from calling your agent to getting the money, it often takes three to four months – if everything goes your way.
If you need to get your money out in a hurry, be prepared to be disappointed.
- Ed McKnight is the economist at property investment company Opes Partners
