C21 Market Pulse | May 2024 | New Zealand

WELCOME TO THE MAY 2024

PUBLISHER

Century 21 New Zealand Ltd

CONTRIBUTORS

Jen Baird

Jean Johnson

EDITORIAL ENQUIRIES

Century 21 New Zealand

+64 9414 6041

ADVERTISING ENQUIRIES

Century 21 New Zealand +64 9414 6041

DISCLAIMER

We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 New Zealand Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.

For more information on our Privacy Policy please refer to: www.century21.co.nz/disclaimer

A SUBDUED MARKET AMID ECONOMIC CHALLENGES

BY JEN BAIRD, REINZ CEO

The Real Estate Institute of New Zealand (REINZ) released its April 2024 data today. The data shows sales activity lifting in almost all regions compared to storm affected April 2023, and year–on–year pricing edging up, continuing a trend seen in recent months.

REINZ Chief Executive Jen Baird says that the market is subdued, despite nationally seeing higher sales counts, properties selling more quickly, increased stock levels, and more listings, compared to a year ago. These increases are a contrast with the much lower measures seen in April 2023, following the impacts of weather events like cyclones Hale and Gabrielle, but are below the average for this time of year longer–term.

The total number of properties sold in New Zealand decreased by 17.3% compared to March 2024, from 6,721 to 5,559, and increased by 25.3% year–on–year, from 4,438 to 5,559. All but one region saw increased year–on–year sales activity, the exception being West Coast, where

sales decreased by 5.3% compared with April 2023.

“Sales activity lifted in 15 of 16 regions, compared with April 2023. Ten of those regions recorded increases of over 20%, with Marlborough (45.8%) recording the highest year–on–year lift in sales.

THE APRIL 2024 SALES FIGURES REFLECT GREATER DEMAND, AFTER THE IMPACTS OF WEATHER EVENTS IN EARLY 2023. HOWEVER, SALES FIGURES ARE STILL BELOW LONG–TERM AVERAGES IN MANY REGIONS.” SAYS BAIRD.

Nationally, median Days to Sell decreased by 3 days, from 46 to 43 days, compared to a year ago.

For NZ, excluding Auckland, median Days to Sell decreased by 7 days year–on–year, from 48 to 41 days.

In 13 of 16 regions, median Days to Sell were lower compared with April 2023. The biggest decreases were in Tasman (down 29 days), Marlborough (down 18 days), Northland (down 17 days), and Wellington (down 11 days).

In contrast, some regions recorded the highest median days to sell for several years: Auckland had the highest days

to sell in the month of April since 2001, Manawatu–Whanganui since 2015, and West Coast since 2019.

The national median sale price increased by 1.3% year–on–year, from $780,000 to $790,000, and decreased by 1.3% compared with March 2024, from $800,000 to $790,000. For NZ excluding Auckland, the median price of $700,000 was the same as for April 2023; month–on–month, it decreased by 1.7%, from $712,000 to $700,000.

“The median national sale price has now increased year–on–year for the third consecutive month, and sales are picking up as well. There are vendors who will need to sell and don’t want to wait any more, and these vendors will need to set realistic expectations, both for price and the time needed to sell their property. The median price for NZ excluding Auckland hasn’t changed compared with April 2023. This may suggest that, with more properties to choose from, some buyers have less competition from other buyers, and some are more comfortable taking a stronger approach to their negotiation.”

Listings nationally increased by 34.9% year–on–year from 7,142 to 9,636, continuing a trend since the start of

ANNUAL MEDIAN PRICE CHANGES

2024. Thirteen of 15 regions saw year–on–year increases in listings, with nine recording increases of over 25%. Wellington had the biggest increase, up by 318 listings year‑on‑year (69.0%), followed by Otago, up 107 (55.2%); Marlborough, up 35 (46.1%); and Auckland, up 1,034 (41.1%). National stock levels also increased year–on–year, with 18.1% more available properties for sale in April 2024.

The HPI for New Zealand stood at 3,629 in April 2024, down by 0.8% compared to the previous month and up by 2.8% for the same period last year. The average annual growth in the New Zealand HPI over the past five years has been 5.8% per annum, and

it is currently 15.1% below the peak of the market reached in 2021.

While the April data shows more activity in the housing market, with year–on–year increases in sales, listings, stock levels, and median prices, it’s clear that economic factors are creating headwinds.

“Activity is picking up for the housing market as we move into autumn, with sales lifting and more choices for buyers. However, the likelihood of interest rates staying at these elevated levels for a while, and more talk of job losses, continues to lead to caution among some buyers.

Source: REINZ Monthly Property Report 14 May 2024.

Access an instant property report now. Click here to begin.

C21.co.nz/property-report/

H OW TO MINIMISE STRESS WHEN MOVING HOUSE

Moving to a new home is an exciting adventure, but it can also be a whirlwind of tasks and emotions. To ensure a smoother transition, consider implementing these seven strategies to alleviate stress and embrace the journey to your new place.

EMBRACE CHANGE

While it's tempting to cling to familiar routines, embracing the changes that come with relocation can make the process more manageable. Create a list of exciting activities or experiences you look forward to in your new location. Having something to anticipate can help keep you motivated during the sometimes chaotic moving days. Designate a small area in your new home where you can unwind and recharge, even amidst the boxes and chaos.

PRIORITISE SELF–CARE

In the midst of packing and planning, don't neglect your own well–being. Incorporate moments of self–care into your routine, whether it's through exercise, meditation, or indulging in a favourite hobby. Taking breaks to recharge will give you the energy and resilience needed to tackle the tasks ahead. Remember to prioritise restful sleep to ensure you're ready for whatever the day brings.

BUILD YOUR SUPPORT SYSTEM

Moving is a team effort, so don't hesitate to ask for help when you need it. Whether it's enlisting

the aid of friends and family or hiring professionals like movers or cleaners, having a reliable support system in place can ease the burden. Keep everyone fueled and hydrated with plenty of snacks and drinks, turning the moving process into a collaborative and even enjoyable experience.

ORGANISE IMPORTANT DOCUMENTS

Keep essential documents easily accessible throughout the moving process to streamline tasks like closing accounts or setting up utilities. Consider investing in a safety deposit box or designated folder to keep paperwork secure and organised amidst the chaos of moving.

ALLOW EXTRA TIME

Moving always takes longer than expected, so build extra time into your schedule to account for unforeseen challenges or delays. By avoiding the pressure of tight deadlines, you'll reduce stress and have the flexibility to adapt to changing circumstances.

SAY GOODBYE THOUGHTFULLY

Saying goodbye to friends, family, and neighbours can be bittersweet,

so plan ahead to make time for meaningful farewells. Schedule visits or gatherings in advance to ensure you can properly say goodbye without feeling rushed. This thoughtful approach will also help minimise interruptions and maintain focus during the final stages of packing and preparation.

EMBRACE NEW BEGINNINGS

As you settle into your new home, take time to explore and familiarise yourself with your new surroundings. Use online resources and community groups to learn about local amenities and attractions. Extend a warm welcome to your new neighbours, setting the stage for positive connections and a smooth transition into your new community.

By implementing these strategies, you can minimise stress and maximise enjoyment as you embark on this exciting new chapter in your life. Here's to a successful and stress–free move!

B UYING A HOUSE? HERE'S HOW TO SIMPLIFY THE PROCESS

Whether you're a first home buyer, looking for your next home or downsizing, buying a house is often a stressful process. There are a number of problems that you could encounter before you pick up the keys and take possession. Here are seven ways to help simplify the process of buying a house.

1. GET YOUR PAPERWORK IN ORDER

Start getting your paperwork in order before you even start looking at properties. If you're applying for a home loan, you'll need a valid ID such as a birth certificate, passport or driver's licence along with valid insurance documentation. You will also need to provide three to six months of bank statements depending on your employment status along with your most recent payslips. If you're using an existing property as security you'll generally need a rates notice or a notice of valuation.

2. FIND A REAL ESTATE AGENT YOU CAN TRUST

Before you start the mortgage or loan application process, finding out what's going on in the market is vital. Talk to at least three local real estate agents and listen to what they have to say about the current value of the house you're looking at buying or selling. It's best to choose the agent with the best track record in your area sales wise along with online recommendations.

Your local Century 21 real estate agent would be happy to assist.

3. START RESEARCHING LENDERS

There are several financial institutions to consider when you need a loan to buy a house in New Zealand. You can choose from a bank, building society or non–bank lender and there are a number of loan types you can choose from depending on your individual situation. Kainga Ora, an organisation that provides housing for those in need even offers first home buyer grants to assist you as long as you've been depositing into your superannuation for at least three years. For more details on the requirements click here.

4. GET YOUR FINANCE IN ORDER

Once you've chosen your bank or credit union, get pre–approved for a loan and get a pre–approval letter from the lender. This will not only help you figure out what you can afford before you start looking, it shows agents and vendors you're serious. Depending on how long your search takes, you may need to renew your pre–approval –

conditional pre–approval in New Zealand only lasts 90 days.

5. FIND A PROPERTY INSPECTOR YOU CAN TRUST

If you're looking at older homes, a good property inspector will be able to warn you of areas where there are a common problems such as heating and ventilation, leaky buildings and problem materials such as Dux West Piping, Weatherside cladding and Abestos. Do your due diligence. One of the best ways to find a good property inspector is to talk to a tradesperson you've used in the past, one who takes pride in their work and wants everyone in the industry to do the same.

6. CONSULT THE LAND INFORMATION MEMORANDUM (LIM)

An LIM report is a summary of information that the local government in your area holds about the property you're looking at. It may include information about the state of emergency placards, potential erosion/subsidence, sewerage drains, overdue rates, NZ Historic Places Trust listings or network utilities. Check out your local council's website for more information on how to order one.

7. GET YOUR TRADESPEOPLE LINED UP

If you're already a homeowner and have been through renovations or repairs, you may have a plumber,

an electrician, a roofer, a flooring person and a carpenter you know and trust. If you're moving to a new city or you're a first–time home buyer, you're going to have to rely on online recommendations.

Here's hoping these seven ways to simplify the process of buying a house make the experience a little less stressful. Happy house hunting!

To find out more about Century 21 and how we can help you, contact your local Century 21 office today.

H OW LONG WILL IT TAKE TO SELL MY PROPERTY?

BY JEAN JOHNSON, C21 JEAN JOHNSON

The time it takes to sell a property can be dependent on various factors; including the current conditions of the market, the property’s location and condition, its pricing strategy and marketing efforts.

It can also be affected by the overall demand for properties in that area. It can be difficult to accurately predict the length of time it will take, however there are a few considerations that can help provide some insight:

MARKET CONDITIONS

The real estate market is subject to constant change, which can impact the speed at which properties sell. In a seller's market with high demand and limited inventory, properties tend to sell more quickly. On the other hand, in a buyer's market with low demand and excess inventory, it may take longer to

find a buyer. Monitoring the local real estate market and seeking the advice of a real estate professional can help you gauge the current market conditions.

PROPERTY CONDITION AND PRICING

The condition of your property plays a significant role in attracting potential buyers. Well–maintained and updated properties generally sell faster than those requiring extensive repairs or renovations. Additionally, pricing the property appropriately is crucial. Overpricing can lead to extended listing periods, while underpricing may result in lost

potential profits. An experienced agent can conduct a comparative market analysis to help you determine an optimal listing price.

MARKETING EFFORTS

Effective marketing and exposure are essential for attracting potential buyers to your property. Utilising various channels such as online listings, social media, professional photography and open houses can increase visibility and generate interest. Partnering with a proactive real estate agent who employs a comprehensive marketing strategy can significantly impact the speed at which your property sells.

While the above can influence the timeline in which your property will sell, it’s important to note that each one is unique. No two sales are exactly the same! Some may sell within days or weeks, while others may take several months. It’s advisable to consult with someone who has a grasp of the current market conditions and can provide you with more accurate estimates based on factors specific to your property.