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P U L S E
N o v e m b e r
M A R K E T
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Jen Baird Steven Dai CoreLogic NZ
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
DISCLAIMER
WELCOME TO THE
November 2023 ISSUE OF
C21 MARKET PULSE
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
Cover image: R Architecture on Unsplash
C O N T E N T S N o v em b er
PROPERTY MARKET UPDATE
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ASK A C21 AGENT
More positivity, slow and steady this month
How can I maximise the appeal of my property to
CEO REINZ, Jen Bairds
potential buyers?
BUYING YOUR FIRST HOME
04
10 Things to remember when purchasing your first home
Century 21 Queen Street Realty, Steven Dai
FIRST HOME BUYERS First home buyers hit record high 27% market share CoreLogic NZ
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P R O P E R T Y M A R K E T U P DAT E
MORE POSITIVITY, SLOW AND STEADY THIS MONTH BY J E N B A I R D, REINZ CEO
The Real Estate Institute of New Zealand’s (REINZ) November 2023 figures show more sales activity, more listings coming to market, lower days to sell and a sense tof more confidence overall (year-on-year). REINZ Chief Executive Jen Baird says
median sale price unchanged
year by three days for New Zealand to
October is showing a slow but steady
compared to last month, staying at
37, and by two days for New Zealand
improvement in property market
$795,000 – around where it has
excluding Auckland, to 39. Regionally,
activity now that the country is past
been for much of the year. Year-
just over half (9 regions) have had a
the election, and we head into more
on-year, there is a slight national
decrease in the days to sell month-
active months in the property cycle.
decrease of 2.8%, while New Zealand
on-month and year-on-year. Year-
excluding Auckland is down by 4.7%
on-year, Days to Sell in New Zealand
to $691,000 from $725,000.
decreased by 7 days compared to
We’ve seen steady activity this month with a small 2.5% decrease (from
October 2022.
5,762 to 5,619) in the number of
Median sales prices year-on-year
properties sold month-on-month,
increased for several regions, with
“Through the REINZ Monthly
and an 8.0% increase (from 5,205
Tasman (+2.0%), West Coast (+2.6%),
Ambassador Survey, agents are
to 5,619) compared to October
Canterbury (+3.2%), and Southland
reporting increased engagement
2022. For New Zealand excluding
(+2.4%) all increasing. There has been
and more certainty from buyers in
Auckland, the total number of
a decrease in median sales prices
the bigger centres, especially post-
properties sold has followed a similar
across all other regions year-on-year
election, supported by the warmer
pattern, decreasing 2.2% month on
this month.
weather. Properties are taking slightly
month and increasing 2.6% year on year from 3,573 to 3,665.
“Local agents are reporting a lot more activity across buyer groups. They’re
fewer days to sell on average, which is an anticipated sign of more positive things ahead.
Across the regions, twelve of the
noticing more investors and first home
sixteen regions had an increase
buyers looking to secure properties
At the end of October, the total
in the number of properties sold
sharing the market with vendors
number of properties available for
year-on-year, with the top of NZ
who are showing a willingness to be
sale across New Zealand was 25,602,
(Northland: +36.1%), and the bottom
realistic with their price expectations.
down 3.7% (975 properties) from
of NZ (Southland: +29.6%) having the
We can see signs of that in the
26,577 year-on-year, and up 8.6%
biggest increases.
median prices this month, ”says Biard.
month-onmonth. For New Zealand
Median sale prices are a mixed bag
The market is moving a little quicker.
across the country, with the national
Days to sell has decreased year-onC21 MARKET PULSE
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excluding Auckland, inventory also decreased by 117 properties (0.7%)
ANNUAL ME DIAN PRICE CHANGES
-6.9%
-3.6%
NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
$795,000
BAY OF PLENTY
-4.4%
-2.8%
GISBORNE
-5.1%
TARANAKI
37
-13.3%
-5.0%
WAIKATO
-2.6%
MEDIAN DAYS TO SELL:
-1.4%
-4.1%
MANAWATU / WANGANUI
HAWKE’S BAY
-4.6%
NELSON
2.0% 2.6%
-16.8%
TASMAN
WELLINGTON
MARLBOROUGH
3.2%
WEST COAST
CANTERBURY
2.4%
-1.5%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 16 November 2023 .
year-on-year from 16,237 to 16,120
year, and a renewed confidence from
and increased 9.7% month-on-month.
vendors looking to sell with more
Nationally, new listings increased by 2.6% from 9,289 listings to 9,529 year-on-year and increased 21.9% compared to September 2023. New Zealand excluding Auckland also saw an increase month-on-month of 23.4% and year-on-year 1.2%. Every region showed an increase in listings month-on-month, with just over 58% for Northland, 40.2% for Wellington, 36.8% for Marlborough, and five other regions increasing by over 20%. “The increasing number of listings coming to market is showing a slow, but marked, improvement to the past
certainty now the election is behind us. While details of the new Government are still being discussed amongst
migration flows remain high leading
coalition partners, many vendors and
to pressure on both the residential
buyers are showing confidence that
sales and rentals market, the weather
it’s a better time to sell now and a good
turns warmer (hopefully!), and
time to buy. The signs are there for an
we watch global factors play out,”
improving market.”
comments Baird.
“Although REINZ data is showing a
The HPI for New Zealand stood at
steadying ship this month, we should
3,652 in October 2023, showing a 1.1%
not discount the impact for those
increase compared to the previous
coming off high interest rates, the
month. However, when compared
pressure of the cost of living, and the
to the same period last year, the HPI
impact on the market post-election.
reflects a 2.5% decline.
Keep a close eye on the next three
Click here to read the full report
months of REINZ data as the new coalition Government’s policies land, C21 MARKET PULSE
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BUYING YOUR FIRST HOME Image: R Architecture on Unsplash
10 THINGS TO REMEMBER WHEN PURCHASING YOUR FIRST HOME Buying your first home is a major life milestone, and it can be an exciting time. However, it's important to be prepared and to understand the process involved. Here are 10 things to remember when purchasing your first home in New Zealand. 1. GET YOUR FINANCES IN ORDER
So, be prepared to compromise on
inspection fees, and moving costs.
Before you start looking for a home,
some things, such as the size of the
Make sure you budget for these
it's important to get your finances in
house, the location, or the condition
costs so that you're not caught short.
order. This means knowing how much
of the property.
4. DON'T BE AFRAID TO NEGOTIATE
7. BE AWARE OF THE GOVERNMENT SCHEMES AVAILABLE
Once you've found a home that
There are a number of government
you're interested in, don't be afraid
schemes available to help first
to negotiate on the price. The seller
home buyers, such as the KiwiSaver
may be willing to come down on
HomeStart Grant and the First
the price, especially if you're pre-
Home Loan Deposit Subsidy. Make
approved for a mortgage and you're
sure you research these schemes
the bank this should generally be free.
serious about buying.
to see if you're eligible for any
2. DO YOUR RESEARCH
5. GET A LAWYER
you can afford to borrow, and having a good deposit saved up. You should also get pre-approved for a mortgage, so that you know how much you can borrow and what your monthly repayments will be. Making use of a Mortgage broker can come in very handy and as they receive a fee from
Once you have your finances in order, it's time to start looking for a home. But before you make any offers, it's important to do your research. This means looking at the different suburbs you're interested in, and understanding the current market conditions. You should also get a building inspection done on any property you're serious about buying.
3. BE PREPARED TO COMPROMISE It's unlikely that you'll find your dream home for your first purchase.
assistance.
Once you've agreed to a price
8. DON'T RUSH INTO ANYTHING
with the seller, you'll need to get
Buying a home is a big decision,
a lawyer to help you with the legal
so don't rush into anything. Make
side of the purchase. Your lawyer
sure you're comfortable with the
will review the sale and purchase
property you're buying, and that
agreement, and they'll make sure
you're getting a good deal. This
that your interests are protected.
foresight can be beneficial in the
6. BE PREPARED FOR THE COSTS INVOLVED In addition to the purchase price of the home, there are a number of other costs involved in buying a home, such as lawyer fees, property C21 MARKET PULSE
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long run.
9. GET HELP FROM PROFESSIONALS If you need help with any aspect of the home buying process, don't be afraid to get help from professionals. This could include a real estate
Image: R Architecture on Unsplash
agent, a mortgage broker, a lawyer,
be discouraged if you don't find
or a property inspector.
your dream home right away.
10. ENJOY THE PROCESS!
Buying your first home is a big
Buying your first home should be an exciting time. So, relax, enjoy the process, and celebrate this major life milestone.
decision, but it doesn't have to be overwhelming. By following the tips above, you can make the process smoother and less stressful.
The New Zealand housing market
Click here to find your local
can be competitive, so it's important
Century 21 agent today.
to be patient and persistent. Don't C21 MARKET PULSE
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ASK A C21 AGENT
HOW CAN I MAXIMISE THE APPEAL OF MY PROPERTY TO POTENTIAL BUYERS? 1. WARM WELCOME AND MEMORABLE FIRST IMPRESSION Imagine welcoming your guests with a well-maintained garden, a freshly painted front door, and vibrant potted plants. It instantly sets a warm, inviting tone for your home. Creating this memorable first impression can capture hearts right from the start!
2. EMBRACE THE BEAUTY OF SIMPLICITY Let your home speak to potential buyers by decluttering and depersonalising spaces. Pack away cherished family photos and let the rooms breathe. Clean, organised spaces allow buyers to envision their future in your home, making it feel like their own oasis.
3. LITTLE TOUCHES THAT MATTER Fix that leaky faucet, replace the broken light bulb, and add a fresh coat of paint where needed. These small gestures show your home is well-cared for, giving buyers
BY STEVEN DAI, CENTURY 21 QUEEN STREET REALTY
modern kitchen, or the breathtaking
and videos to showcase your home's
views? Highlight these features in
charm. Be transparent about your
your marketing materials and during
property's history, recent upgrades,
showings. Let potential buyers see
and maintenance records. Honesty
the lifestyle they could have in
builds trust, making buyers feel
your home.
comfortable and confident in their decision.
5. CREATING A DREAMY ATMOSPHERE Imagine walking into a home
8. COLLABORATION WITH A LOCAL EXPERT
that feels like a dream. Consider
A friendly, knowledgeable real
rearranging furniture, adding
estate agent can be your greatest
decorative elements, and enhancing
ally. They understand the local
the ambiance. Whether you hire a
market intricacies and can guide
professional or channel your inner
you effectively. Together, you
designer, staging your home can
can create a marketing strategy
create a magical atmosphere that
tailored to your property's unique
buyers fall in love with.
appeal, ensuring it reaches the right audience.
6. GREEN AND SUSTAINABLE LIVING
Remember, selling your home is
Kiwi buyers appreciate sustainability. Showcase eco‑friendly features like energy‑efficient appliances, native garden landscaping, or rainwater harvesting systems. These touches not only appeal to their eco‑conscious side but also
confidence in their investment.
add value to your property.
4. SHOWCASING YOUR HOME'S UNIQUE CHARMS
7. ENGAGE ONLINE AND BE TRANSPARENT
What makes your home special? Is it the spacious backyard, the
In today's digital age, online presence is key. Invest in high‑quality photos
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not just a transaction; it's a journey. With these friendly tips and a touch of Kiwi hospitality, you can make your property the dream home for someone else. Happy selling!
FIND OUT YOUR PROPERTY’S WORTH IN AN INSTANT Access an instant property report now. Click here to begin.
C21.co.nz/property-report/
F I R ST- H O ME B U YE R S
FIRST-HOME BUYERS HIT RECORD HIGH 27% MARKET SHARE BY CORELOGIC NZ
Despite stretched affordability, high interest rates, and cost of living pressures, first home buyers (FHBs) in New Zealand continue to lead the market in purchasing activity, highlighting the continued strong appeal of having a 'foot on the ladder'. CoreLogic’s six-monthly First
with all six areas recording above-
falling from $720,000 in 2022 to
Home Buyer Report released today
average shares of FHB purchases so
$690,000 in 2023 to date.
shows FHBs accounted for 27%
far in 2023.
of purchases in the third quarter, a new record high. Over the year to date, FHBs sit at 26% market share, comfortably above the longterm average of 21%, however the number of deals still sits below past norms in a relatively subdued market.
Mr. Davidson said the typical FHB
Wider Wellington has held the
often enters the market above the
strongest market share for FHBs
'bottom rung', rather than starting
with 33% of purchases in the year
from the bottom.
to date (4% above normal). At the other end of the spectrum, FHBs in Tauranga held 21% of purchases (5% above normal). Auckland, Christchurch, and Dunedin each
NZ Chief Property Economist Kelvin
report 5% higher than average, with
Davidson said despite some key
Hamilton 6% above for 2023.
challenges for all buyer groups, FHBs are still finding a way.
Provincial markets show a similar trend with Invercargill holding the
“Whether it’s using the low-deposit
strongest market share for FHBs
lending speed limits at the banks,
with 32% of purchases, a significant
tapping their KiwiSaver to help
10 percentage points higher than
with their deposit, securing First
the long-term average. Whangarei
Home Grants or First Home Loans,
and Rotorua are other examples of
or compromising on the size or
‘FHB hotspots’, as are smaller areas
location of their home, FHBs are
such as South Waikato and Clutha.
proving relatively more successful in buying their first home than at any other time,” Mr Davidson said. The national trends are being reflected across the main centres,
FHB MEDIAN PRICE
than the median price paid across all buyers at $762,500, but it’s significantly higher than the lower quartile across all buyers at $565,000.” Auckland is the main centre where FHBs pay the most at a median of $875,000 in 2023, $107,000 less than the all-buyer median of $982,000. Median FHB prices paid range between $700-$750,000 in each of Tauranga, Wellington, and Hamilton, and sit at $600,000 in Christchurch, and $530,000 in Dunedin.
Click here to read the full article
FHBs have benefitted from the wider downturn in property values over the past 18 months, with the median price paid by the cohort C21 MARKET PULSE
“For example, $690,000 is lower
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