Our November 2023 blog updates you on the latest property market trends, based on the REINZ verified sales statistics to end of October 2023. Discover key insights and arm yourself with the information you need if you are considering selling a property. Don’t make a move without reading this!
National Highlights
- The National-ACT- NZ First coalition government has been formed with Chris Luxon as Prime Minister
- The coalition agreement states that the Government will “restore mortgage interest deductibility for rental properties with a 60% deduction in 2023/24, 80% in 2024/25, and 100% in 2025/26”.
- The Housing Price Index (HPI) shows a 1.1% increase for October compared with September, and a 2.7% increase for the 3 months to October 2023.
- There has been a small 2.5% decrease in the number of properties sold month-on-month and an 8% increase compared to October 2022.
- Days to sell has decreased year-on-year by three days for New Zealand to 37, and by two days for New Zealand excluding Auckland, to 39.
- At the end of October, the total number of properties available for sale across New Zealand was up 8.6% month-on-month and excluding Auckland increased by 9.7% month-on-month.
Overall, there has been a continued modest rise in HPI over the past month and over the past 3 months nationally. There was a slight decrease in the number of properties sold during October compared to September. A slight decrease in days to sell (to 39) and an 8.6% lift month-on-month in the number of properties available for sale.
The National-ACT-NZ First coalition government’s agreement to restore mortgage interest deductibility is significant, positive news for rental property owners and prospective rental investors.
Rotorua Property Market Update
- The number of properties for sale (trademe.co.nz) is currently 463 as compared to 400 listings as of 17th October and 354 as of 13th July.
- 63 properties were sold in October, compared to 56 sales in September, and 69 sales in August.
- A 1.6% increase in HPI (as a measure of market values) was reported for October, with a 3-month (August-September-October) increase of 1.4%.
- Median Days to sell was 33 days for October, compared to 49 days for the same month last year.
Overall, the Rotorua property market for the 3 months ending October 2023 can be summarised as:
- Continued low sales volumes.
- Housing Price Index has finally recorded a modest positive increase.
- A continued increase in the number of properties being listed for sale.
- An increase in the ‘pace’ of the market with median days to sell at 33 days which tracks slightly under the national median of 37 days.
Power of 2 Update
In recent months we have experienced a flurry of faster-paced sales which were more weighted to the ‘affordable end’ of the market. There is interest and activity in mid-to-higher end properties, but on average they are taking longer to sell.
The coalitions governments move to restore interest deductibility is the ‘big news’ which will give existing rental property owners confidence and encourage prospective rental investor buyers moving forward.
Recently prospective sellers have been pondering the question “Do we go to market now or in the new year?”. The answer is a bit like fishing – if you don’t have your line in the water, you won’t get any bites!
Last Christmas for example was a very busy time for us – with a flurry of buyer interest with a view to getting properties under contract ahead of Christmas, and an ‘early start’ with buyers becoming active again from the first week of January.
That said we have prospective sellers who are choosing to have their final Christmas at home before launching to market in the new year – so the decision comes down to your personal preference.
Regardless of your intended schedule, remember that we offer free no-obligation property appraisals to help you assess where your property sits in the market and provide customised recommendations for you to prepare your property for sale.
If you book your appraisal in before Christmas that will give you early clarity on your intended sale inclusive of having a customised pre-launch ‘to-do’ list that you can chip away at over the holiday period.
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.
