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Property market report

The national median days to sell hit 50 in August, the highest it has been in the month of August since 2008, according to the Real Estate Institute of New Zealand (REINZ).

Meanwhile, the national inventory level surged 30% year-on-year in August, reaching 29,579 properties on the market. This was down 977 from 30,556 in July.

REINZ says the national median price dropped $5,000 to $765,000 in August year-on-year, but rose $12,000 from $753,000 in July.

The total number of properties sold fell by 40 to 5,685 in August year-on-year, and fell by 307, or 5%, from July.

The REINZ's House Price Index, which is adjusted to account for changes in the mix of properties sold each month, weighed in at 3,563 in August, down 0.8% year-on-year, and unchanged from July. The HPI is 16.7% below the market peak reached in 2021.

In terms of the national median days to sell, it's the first time this has reached 50 since 2008 when it came in at 57.

We continue to see an increase in the average number of properties listed. Although the inventory is down slightly compared to last month, the volume of properties for sale continues to provide a lot of choice for buyers.

This August, we saw further signs of a change in market sentiment, with local agents reporting increased confidence in vendors and purchasers, the return of investors, and increased activity, particularly at open homes over the last two weeks of August. They attribute this change to the decline in interest rates. However, it would be an overstatement to say that we are at a turning point in the market.

In Auckland the median price rose $10,000 to $960,000 in August from July, but was down $50,000 year-on-year.  At 1,801, Auckland sales volumes were down marginally. Median days to sell came in at 51 in Auckland, up 10 year-on-year, the highest in the city since 2001, and well above the 10-year average of 39.

So, where to from here. As the OCR reduces and banks become more interested in winning new business to offset profit reductions, we would expect to see a gradual lift in confidence which in turn will deliver firmer prices and a reduction in time on market. So for now, we suggest purchasers still have a window of time to buy well until others catch up.

Let’s look at the sales numbers:

Herald Island                           $986,500

Hobsonville                             $563,000 to $2,195,000

Massey                                     $620,000 to $1,221,000

Swanson                                  $695,000 to $1,729,000

West Harbour                         $800,000 to $1,438,000

Westgate                                 $665,000 to $1,048,000

Whenuapai                              $722,500 to $1,080,000

A reduction in mortgage rates will represent an increase in buyers’ ability to secure a mortgage at a slightly higher value and in due course provide stability to falling prices and a firming of house prices. If you are considering listing your property for sale it costs no more to use an experienced agent with a proven track record. A sensible commission structure and excellent advertising programme offered to ensure satisfaction. Call me for a no obligation chat on 027 632 0421, graham.mcintyre@kumeu.rh.co.nz Graham McIntyre AREINZ. Country Living Realty Limited T/A Raine & Horne Kumeu-Hobsonville Licensed REAA2008.