Welcome to our February 2024 update which is primarily sourced from the REINZ (Real Estate Institute of New Zealand) verified sales data to end of January 2024. Statistically we focus on reporting Housing Price Index (HPI) as the most accurate measure of market value trends.
Our update summarises the latest trends and insights and helps you make smart choices.
National Highlights
- Total number of properties sold increased in January rising 16% year-on-year for New Zealand excluding Auckland.
- Year-on-year listings (the number of properties for sale) increased by 10.4% nationally and 5.4% for New Zealand excluding Auckland.
- The Housing Price Index (HPI) for New Zealand, which stood at 3,660 in January 2024, showed a 0.4% increase compared to the previous month and a 2.2% increase from the same period last year.
- The average annual growth in the New Zealand HPI over the past five years has been 6.0% per annum.
- The current HPI and is 14.4% below the peak of the market in 2021
Overall, our thought is that 1) market values have stabilised and there is a modest positive trend in market values as measured by HPI and 2) the number of properties listed for sale continues to increase.
Jen Baird CEO of REINZ (Real Estate Institute of New Zealand) is quoted as saying “the property sector is expecting the new government to make good on its promises to reduce the bright line back to two years and reintroduce interest deductibility on investment properties, changing the dynamics of the property market again.”
Rotorua Property Market Update
37 sales were recorded in Rotorua for January 2024 as compared to 65 sales for December 2023, and 64 sales for November 2023.
January typically has a lower number of sales due to the holiday season, however the overall trend for relatively low sales volumes continues.
The median days to sell in January was 41 days as compared with 58 days for January 2023 reflecting a slight year-on-year lift in ‘the pace’ of the market.
500 properties are currently for sale on Trade Me (as at 27th February 2024) as compared to 400 listings as at 17th October 2023 and 354 listings as at 13th July 2023. There is a clear trend of more properties being listed for sale.
A 0.8% increase in HPI (as a measure of market value trend) was reported for January 2024.
The 3-month (November 2023-December 2023-January 2024) HPI trend was 4.8% increase.
Overall, the Rotorua property market for the three months ending January 2024 can be summarised as:
- Continued low sales volumes
- Continued increase in the number of properties listed for sale
- An encouraging 3-month increase in the HPI (as a measure of market value) of 4.8%
Power of 2 Update
As measured by HPI, Rotorua property market values have stabilized and recorded a positive upward trend.
Whilst there is a continued increase in the number of properties for sale the market is continuing to record low sales volumes.
Our experience is that homeowner buyers continue to dominate the market.
Comparatively there are lower levels of investor buyer activity, but that is likely to change significantly if the new government makes good on its promise to reduce the bright line back to two years and reintroduce interest deductibility on investment properties.
Well researched buyers are aware of the positive trend in market values and are looking to take the opportunity to purchase ahead of an anticipated rise in market values.
If you are considering selling now is the time to book you free no-obligation property appraisal to help you assess where your property sits in the market, how best to prepare your property for sale, together with the marketing strategies to achieve best sale price for your property.
We wish you all the very best and invite you to contact us for all things real estate!
You can call us on 027 672 7263 or fill out our Free Property Appraisal Request Form.
