Open homes and auctions are getting busier as buyers continue to return to the market as lending conditions improve.
The latest date from realestate.co.nz showed following the recent reduction of the Office Cash Rate (OCR) residential sale inquiries jumped drastically compared to after the first accountment. Although the market continues to be complex with little movement in property prices month-to-month, there are signs of stabilisations with the increase in buyer activity that may point to a future recovery.
Renewed buyer interest and surge in enquiries
The response to the October OCR cut has been significant, realestate.co.nz saw a substantial 17.1 percent increase in residential sale enquiries. This surge reflects a rebound in buyer confidence, as more people feel comfortable re-entering the market with the expectation that rates will continue to decrease. This positive shift could indicate that buyers who were previously hesitant are now prepared to make decisions.
LJ Hooker Group Head of Network NZ Campbell Dunoon said activity is likely to increase through the remainder of the year, especially with another rate cut expected on 27 November.
“The uptick in buyer enquiries is a positive sign that people are regaining confidence in making property decisions. This renewed activity can be an early indicator of an improving market,” he said.
Opportunities for buyers
October brought an unexpected rise in available properties, with stock levels surpassing 32,000—marking the highest number for this month in a decade and a 26.3 percent increase compared to last year. While high inventory levels may suggest increased competition among sellers, they also provide an advantageous environment for buyers who can now explore a wider range of options.
“The abundance of stock, combined with stable prices, presents a unique window of opportunity for informed buyers. It’s a time where preparation and planning can truly pay off,” Dunoon said.
“The number of new listings can also be linked to the number of new buyers in the market as people may need to sell their existing home before being able to buy.”
Stabilisation in property prices offers predictability
Stability in property prices has been an encouraging development amidst the wider market shifts. Over the past two years, the national average asking price has remained between $850,000 and $890,000, offering a rare level of predictability for both buyers and sellers.
In October, the average asking price stood at $856,981, representing a 3.0 percent year-on-year decrease and a slight 1.5 percent drop from September. Such minimal fluctuations can signal a more stable environment where drastic price movements are less likely.
“Price stability provides reassurance for both buyers and sellers. This level of predictability helps people make more confident, long-term decisions,” Dunoon said.
Resilience in specific markets
Regionally, the property market presents a varied landscape. Christchurch has shown positive movement with a slight 0.2 percent increase in property values, underscoring its appeal due to lifestyle benefits and relative affordability compared to other major cities. This resilience positions Christchurch as an attractive option for those seeking value outside of more volatile urban markets. Similarly, Tauranga’s market has held steady, showcasing its enduring attractiveness, particularly for buyers seeking coastal living with city-like amenities.
Conversely, larger cities such as Wellington and Auckland continue to face challenges, with property values declining by -1.2 percent and -0.7 percent, respectively. These drops are indicative of broader economic pressures, including higher living costs and shifting population dynamics.
“Certain regions, like Christchurch, continue to show resilience, underscoring how localised factors play a critical role in property performance,” Dunoon said.
These disparities emphasise the importance of local market knowledge, as factors such as employment opportunities, amenities, and lifestyle preferences can significantly influence regional demand.
Cautious optimism ahead
Despite these positive indicators, the property market is not without its challenges. CoreLogic data indicates that property values nationally experienced a -0.5 percent decline in October compared to September. Although average property values remain 16 percent higher than pre-COVID levels, the slower pace of recovery highlights the complex interplay of economic conditions affecting the market.
“Stability is not the same as a rapid recovery, but the recent data suggests that we may have passed the peak of market corrections. Buyers are more aware of the opportunities present, yet economic conditions, such as job security, will continue to shape the market’s pace of recovery,” Dunoon said.
Balanced approach for 2025
Looking forward, the property market appears poised for a more balanced trajectory. High stock levels, increasing buyer activity, and stabilised prices point towards the potential for a market that finds symmetry in the coming year. While rapid price gains are not expected, the foundation for moderate, steady growth is being laid.
“While we don’t expect a swift post-COVID-style rebound, the signs of stabilisation offer hope for a more measured recovery in 2025.”
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