Thinking of selling your property in the next few months? Don't make a move without reading this! Our latest blog delves into the property market's most recent trends based on REINZ verified sales to end of September 2023, offering vital data that directly impact you as a property seller. Discover what the current landscape holds and gain valuable insights to make informed decisions about your sale.
National Highlights – Year on Year Trends
- A year-on-year decrease of 9% in the number of properties for sale.
- A 3.3% lift over the last 3 months in the number of properties for sale
- A 5.1% lift year-on-year in the number of properties sold.
- A reduction in the median days to sell.
- The NZ Housing Price Index showing a 0.7% increase for October, and a 3-month increase of 2.5%.
- The current NZ Housing Price Index sits 15.5% below the historical peak.
Overall, with improved sales volumes the ‘pace’ of the market is improving, and as measured by Housing Price Index, housing prices have improved by 2.5% over the past 3 months.
Jen Baird, CEO of REINZ is quoted as saying “The numbers we are seeing this month show the expected upturn in the market post winter but after many months of a much weaker market, there seem to be stronger signals in growing activity from both buyers and sellers.”
Rotorua Property Market Update
- The number of properties for sale (trademe.co.nz) has lifted from 354 as of 13th July to 400 current listings (as at 17th October).
- 53 properties were sold in September, as compared with 69 in August and 68 in September 2022.
- Median sales price was $600,000 in September, as compared with $595,000 in August, and $657,000 in September 2022.
- Housing Price Index (as a measure of housing price movements) was -1.6% for September, and -3.2% for the last 3 months (July-August-September). (See end of this blog for an explanation of HPI)
Overall, the Rotorua market for the 3 months ending September 2023 can be summarised as:
- Low sales volumes
- A seasonal increase in the number of properties for sale
- A negative -3.2% trend in Housing Price Index as compared to a positive 2.5% trend nationally.
Power of 2 Update
Over the last two months in particular we have experienced:
- A significant increase in open home attendance and buyer inquiry generally.
- A marked increase in the number of offers being made and agreements being successfully negotiated.
- A ‘flow-on’ to an increased number of sales across properties in all price ranges.
- The ‘pace’ of the market quickening.
Given our recent experience is reflected across the Rotorua market, we are expecting that the November REINZ report will report an increase in the number of properties sold in October 2023 and may also record a positive trend in the Housing Price Index.
The current market scenario is very encouraging for people who are considering selling their property.
Housing Price Index Explained
This content is sourced from the REINZ Monthly HPI Report.
The REINZ (Real Estate of New Zealand) Housing Price Index (HPI) was developed in partnership with the Reserve Bank of New Zealand.
The measure is based on SPAR methodology which is a complicated computation but has been proved to be the most comprehensive tool to understand the housing market.
Housing Price Index is a more accurate measure of market movements as compared to median and average house price measures.
Median and average house price measures are susceptible to the changed nature of the underlying sample they are based on.
For example, if the underlying sample has an unusually large representation of higher end housing sales, then a higher median house price is reported. This ‘increase’ does not necessarily reflect a change in market values.
It is for this reason that we reference the REINZ Housing Price Index (HPI) reports as published by the Real Estate Institute of New Zealand as the most accurate measure of housing price movements. If you love to ‘crunch the numbers’, the REINZ Monthly Property Reports are available online at www.reinz.co.nz.
Remember we offer free no-obligation property appraisals to help you assess where your property sits in the market and also provide customised recommendations for you to prepare your property for sale.
You can call us on 027 672 7263 or fill out our Free Property Appraisal Request Form.
