A Season of Opportunity
Summer has nearly arrived in New Zealand, bringing with it a renewed sense of optimism in the property market. According to the latest figures from the Real Estate Institute of New Zealand (REINZ), October showed signs of recovery, with modest increases in both sales and median prices.
Positive Shifts in the Market
Following a subdued winter season, October’s data suggests a turning point. Sales volumes were up, accompanied by a slight uplift in median prices across various regions. This renewed activity is a promising sign, with our salespeople noting that the market is slowly stabilising after a challenging year.
Spotlight on Lower Hutt
In Lower Hutt, the median property price for October was $689,000, marking an increase from earlier in 2024. Sales activity in the region picked up with 130 properties sold last month. The median days to sell dropped from 54 in September to 43 days, indicating a healthier pace of transactions compared to earlier months. Our salespeople are witnessing growing interest from first-home buyers, who are taking advantage of increased inventory and stabilising prices.
Buyer Caution Amidst Interest Rate Changes
Despite the encouraging signs, buyers remain cautious, particularly in the face of historically high interest rates. Many are taking a strategic approach, prioritising negotiation to ensure they’re securing value in their purchases. Our salespeople report that while there is growing interest, some buyers are still hesitant to overcommit in the current economic climate. The most active buyer group in October was first-home buyers, with some interest from those purchasing second homes. However, investor activity remains minimal, as they continue to wait on the sidelines for clearer signals in the market.
Surge in Listings and Market Dynamics
New listings have continued to rise steadily throughout 2024, with October seeing a notable surge. Year-to-date, each month has recorded higher listing volumes compared to the same period in 2023. In fact, 13 out of New Zealand’s 15 regions reported an increase in listings compared to last year, indicating growing vendor confidence.
However, while more properties are coming onto the market, the sentiment among buyers remains cautious. “Attendance at open homes and auction rooms is still below expectations,” notes one of our experienced salespeople. “While vendors have largely adjusted their expectations to align with the current market, some are beginning to question their pricing strategies in light of recent media speculation that prices could rise.”
In some cases, properties that failed to generate interest were withdrawn from the market, reflecting the ongoing uncertainty among buyers about current market conditions.
Looking Ahead: A Fresh Start for the New Year
As we head towards summer and the new year, there is a growing sense of anticipation and optimism. Our salespeople are hopeful that renewed buyer and seller energy will set the stage for a more dynamic market. With potential further drops in interest rates, a steady stream of new listings, and a positive outlook for economic conditions, 2025 could see a reinvigorated property market.
As the days grow warmer and the holiday season approaches, it’s a time for buyers and sellers alike to reset their plans, make informed decisions, and take advantage of the opportunities that lie ahead. Here’s to a vibrant close to 2024 and an exciting start to the new year, where fresh opportunities await in the Hutt Valley’s ever-evolving property landscape.