Winter activity in the property market is often subdued, and this year has been no exception. However, heading into the spring we could be in line for a long-awaited shift in momentum.
Nationwide residential property statistics from the Real Estate Institute of New Zealand (REINZ) indicate that both sales and median prices decreased in June. Compounded by current economic conditions, the typical winter lull resulted in lower market activity, sales decreasing by 11.1% compared to the previous month.
Meanwhile the national median price for residential property decreased by 1.3% year-on-year, from $780,000 to $770,000.
However, residential listings continue to rise, up by 25.5% year-on-year. With such a range to choose from, buyers in the spring will be in the ascendant. Many are ready to purchase, in which case, even a slight improvement in sentiment could lead to a resurgence in the market.
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Invariably a key factor in buying and selling decisions, if the Reserve Bank’s prediction of a downward shift in interest rates come to fruition, this could become the tipping point.
Regardless of economic conditions, individual circumstances change, and life frequently demands that people make property decisions. When those pressures build, the market will often swiftly take on a more positive hue.
A similar scenario is playing out in both the rural and the lifestyle property markets. In year-on-year statistics for lifestyle property, REINZ reports stability, with incremental growth in sales and measured price adjustments.
PGG Wrightson general manager Peter Newbold: “Vendors of rural property are becoming more realistic, while buyers are evaluating the widening range of property now available.” Photo / Supplied
Meanwhile, compared to the same period in 2023, REINZ statistics for the three months ended May 2024 indicate the quantity of farm sales nationwide fell by 9.3%, with prices in most types of farms stable or slightly soft.
Anecdotally, sentiment among farmers seems set to change. Vendors of rural property are becoming more realistic, while buyers are evaluating the widening range of property now available, with more farms set to come to market as the spring progresses.
Subject to weather, the rural property market may even start to reboot ahead of or early in spring.
One region that recorded strengthening market activity heading into winter was Southland, and judging by what’s in prospect for spring rural property listings in the province, this reset is likely. If so, things could be on the move with the potential to spread throughout the country.
While this will not be a boom, there will be growth, more sales, and increasing opportunities for anyone seeking to buy or sell a farm, an orchard or a vineyard.
As you will see in our recent Winter Collection publication, there is no shortage of good listings across all property sectors, with more to come as the spring commences.
Whether buying or selling, if engaging in a newly active property market will help you to meet business or personal aspirations, PGG Wrightson Real Estate’s nationwide team of expert property salespeople is here to help. Specialising in residential, lifestyle, rural and commercial properties, we provide the guidance you need to reach your goals.
- Peter Newbold is general manager of PGG Wrightson Real Estate
