C21 Market Pulse | November 2023 | New Zealand

2 0 2 3

P U L S E

N o v e m b e r

M A R K E T

C21

PUBLISHER Century 21 New Zealand Ltd

CONTRIBUTORS Jen Baird Steven Dai CoreLogic NZ

EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041

ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041

DISCLAIMER

WELCOME TO THE

November 2023 ISSUE OF

C21 MARKET PULSE

We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 New Zealand Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.

For more information on our Privacy Policy please refer to: www.century21.co.nz/disclaimer

Cover image: R Architecture on Unsplash

C O N T E N T S N o v em b er

PROPERTY MARKET UPDATE

02

2 0 2 3

ASK A C21 AGENT

More positivity, slow and steady this month

How can I maximise the appeal of my property to

CEO REINZ, Jen Bairds

potential buyers?

BUYING YOUR FIRST HOME

04

10 Things to remember when purchasing your first home

Century 21 Queen Street Realty, Steven Dai

FIRST HOME BUYERS First home buyers hit record high 27% market share CoreLogic NZ

C21 MARKET PULSE

06

01

CENTURY 21

08

P R O P E R T Y M A R K E T U P DAT E

MORE POSITIVITY, SLOW AND STEADY THIS MONTH

BY J E N B A I R D, REINZ CEO

The Real Estate Institute of New Zealand’s (REINZ) November 2023 figures show more sales activity, more listings coming to market, lower days to sell and a sense tof more confidence overall (year-on-year).

REINZ Chief Executive Jen Baird says

median sale price unchanged

year by three days for New Zealand to

October is showing a slow but steady

compared to last month, staying at

37, and by two days for New Zealand

improvement in property market

$795,000 – around where it has

excluding Auckland, to 39. Regionally,

activity now that the country is past

been for much of the year. Year-

just over half (9 regions) have had a

the election, and we head into more

on-year, there is a slight national

decrease in the days to sell month-

active months in the property cycle.

decrease of 2.8%, while New Zealand

on-month and year-on-year. Year-

excluding Auckland is down by 4.7%

on-year, Days to Sell in New Zealand

to $691,000 from $725,000.

decreased by 7 days compared to

We’ve seen steady activity this month with a small 2.5% decrease (from

October 2022.

5,762 to 5,619) in the number of

Median sales prices year-on-year

properties sold month-on-month,

increased for several regions, with

“Through the REINZ Monthly

and an 8.0% increase (from 5,205

Tasman (+2.0%), West Coast (+2.6%),

Ambassador Survey, agents are

to 5,619) compared to October

Canterbury (+3.2%), and Southland

reporting increased engagement

2022. For New Zealand excluding

(+2.4%) all increasing. There has been

and more certainty from buyers in

Auckland, the total number of

a decrease in median sales prices

the bigger centres, especially post-

properties sold has followed a similar

across all other regions year-on-year

election, supported by the warmer

pattern, decreasing 2.2% month on

this month.

weather. Properties are taking slightly

month and increasing 2.6% year on year from 3,573 to 3,665.

“Local agents are reporting a lot more activity across buyer groups. They’re

fewer days to sell on average, which is an anticipated sign of more positive things ahead.

Across the regions, twelve of the

noticing more investors and first home

sixteen regions had an increase

buyers looking to secure properties

At the end of October, the total

in the number of properties sold

sharing the market with vendors

number of properties available for

year-on-year, with the top of NZ

who are showing a willingness to be

sale across New Zealand was 25,602,

(Northland: +36.1%), and the bottom

realistic with their price expectations.

down 3.7% (975 properties) from

of NZ (Southland: +29.6%) having the

We can see signs of that in the

26,577 year-on-year, and up 8.6%

biggest increases.

median prices this month, ”says Biard.

month-onmonth. For New Zealand

Median sale prices are a mixed bag

The market is moving a little quicker.

across the country, with the national

Days to sell has decreased year-onC21 MARKET PULSE

02

CENTURY 21

excluding Auckland, inventory also decreased by 117 properties (0.7%)

ANNUAL ME DIAN PRICE CHANGES

-6.9%

-3.6%

NORTHLAND

AUCKLAND

NATIONAL MEDIAN PRICE:

$795,000

BAY OF PLENTY

-4.4%

-2.8%

GISBORNE

-5.1%

TARANAKI

37

-13.3%

-5.0%

WAIKATO

-2.6%

MEDIAN DAYS TO SELL:

-1.4%

-4.1%

MANAWATU / WANGANUI

HAWKE’S BAY

-4.6%

NELSON

2.0% 2.6%

-16.8%

TASMAN

WELLINGTON

MARLBOROUGH

3.2%

WEST COAST

CANTERBURY

2.4%

-1.5%

SOUTHLAND

OTAGO Source: REINZ Monthly Property Report 16 November 2023 .

year-on-year from 16,237 to 16,120

year, and a renewed confidence from

and increased 9.7% month-on-month.

vendors looking to sell with more

Nationally, new listings increased by 2.6% from 9,289 listings to 9,529 year-on-year and increased 21.9% compared to September 2023. New Zealand excluding Auckland also saw an increase month-on-month of 23.4% and year-on-year 1.2%.

Every region showed an increase in listings month-on-month, with just over 58% for Northland, 40.2% for Wellington, 36.8% for Marlborough, and five other regions increasing by over 20%.

“The increasing number of listings coming to market is showing a slow, but marked, improvement to the past

certainty now the election is behind us.

While details of the new Government are still being discussed amongst

migration flows remain high leading

coalition partners, many vendors and

to pressure on both the residential

buyers are showing confidence that

sales and rentals market, the weather

it’s a better time to sell now and a good

turns warmer (hopefully!), and

time to buy. The signs are there for an

we watch global factors play out,”

improving market.”

comments Baird.

“Although REINZ data is showing a

The HPI for New Zealand stood at

steadying ship this month, we should

3,652 in October 2023, showing a 1.1%

not discount the impact for those

increase compared to the previous

coming off high interest rates, the

month. However, when compared

pressure of the cost of living, and the

to the same period last year, the HPI

impact on the market post-election.

reflects a 2.5% decline.

Keep a close eye on the next three

Click here to read the full report

months of REINZ data as the new coalition Government’s policies land, C21 MARKET PULSE

03

CENTURY 21

BUYING YOUR FIRST HOME Image: R Architecture on Unsplash

10 THINGS TO REMEMBER WHEN PURCHASING YOUR FIRST HOME Buying your first home is a major life milestone, and it can be an exciting time. However, it's important to be prepared and to understand the process involved. Here are 10 things to remember when purchasing your first home in New Zealand.

1. GET YOUR FINANCES IN ORDER

So, be prepared to compromise on

inspection fees, and moving costs.

Before you start looking for a home,

some things, such as the size of the

Make sure you budget for these

it's important to get your finances in

house, the location, or the condition

costs so that you're not caught short.

order. This means knowing how much

of the property.

4. DON'T BE AFRAID TO NEGOTIATE

7. BE AWARE OF THE GOVERNMENT SCHEMES AVAILABLE

Once you've found a home that

There are a number of government

you're interested in, don't be afraid

schemes available to help first

to negotiate on the price. The seller

home buyers, such as the KiwiSaver

may be willing to come down on

HomeStart Grant and the First

the price, especially if you're pre-

Home Loan Deposit Subsidy. Make

approved for a mortgage and you're

sure you research these schemes

the bank this should generally be free.

serious about buying.

to see if you're eligible for any

2. DO YOUR RESEARCH

5. GET A LAWYER

you can afford to borrow, and having a good deposit saved up. You should also get pre-approved for a mortgage, so that you know how much you can borrow and what your monthly repayments will be. Making use of a Mortgage broker can come in very handy and as they receive a fee from

Once you have your finances in order, it's time to start looking for a home. But before you make any offers, it's important to do your research. This means looking at the different suburbs you're interested in, and understanding the current market conditions. You should also get a building inspection done on any property you're serious about buying.

3. BE PREPARED TO COMPROMISE It's unlikely that you'll find your dream home for your first purchase.

assistance.

Once you've agreed to a price

8. DON'T RUSH INTO ANYTHING

with the seller, you'll need to get

Buying a home is a big decision,

a lawyer to help you with the legal

so don't rush into anything. Make

side of the purchase. Your lawyer

sure you're comfortable with the

will review the sale and purchase

property you're buying, and that

agreement, and they'll make sure

you're getting a good deal. This

that your interests are protected.

foresight can be beneficial in the

6. BE PREPARED FOR THE COSTS INVOLVED In addition to the purchase price of the home, there are a number of other costs involved in buying a home, such as lawyer fees, property C21 MARKET PULSE

04

CENTURY 21

long run.

9. GET HELP FROM PROFESSIONALS If you need help with any aspect of the home buying process, don't be afraid to get help from professionals.

This could include a real estate

Image: R Architecture on Unsplash

agent, a mortgage broker, a lawyer,

be discouraged if you don't find

or a property inspector.

your dream home right away.

10. ENJOY THE PROCESS!

Buying your first home is a big

Buying your first home should be an exciting time. So, relax, enjoy the process, and celebrate this major life milestone.

decision, but it doesn't have to be overwhelming. By following the tips above, you can make the process smoother and less stressful.

The New Zealand housing market

Click here to find your local

can be competitive, so it's important

Century 21 agent today.

to be patient and persistent. Don't C21 MARKET PULSE

05

CENTURY 21

ASK A C21 AGENT

HOW CAN I MAXIMISE THE APPEAL OF MY PROPERTY TO POTENTIAL BUYERS? 1. WARM WELCOME AND MEMORABLE FIRST IMPRESSION Imagine welcoming your guests with a well-maintained garden, a freshly painted front door, and vibrant potted plants. It instantly sets a warm, inviting tone for your home. Creating this memorable first impression can capture hearts right from the start!

2. EMBRACE THE BEAUTY OF SIMPLICITY Let your home speak to potential buyers by decluttering and depersonalising spaces. Pack away cherished family photos and let the rooms breathe. Clean, organised spaces allow buyers to envision their future in your home, making it feel like their own oasis.

3. LITTLE TOUCHES THAT MATTER Fix that leaky faucet, replace the broken light bulb, and add a fresh coat of paint where needed. These small gestures show your home is well-cared for, giving buyers

BY STEVEN DAI, CENTURY 21 QUEEN STREET REALTY

modern kitchen, or the breathtaking

and videos to showcase your home's

views? Highlight these features in

charm. Be transparent about your

your marketing materials and during

property's history, recent upgrades,

showings. Let potential buyers see

and maintenance records. Honesty

the lifestyle they could have in

builds trust, making buyers feel

your home.

comfortable and confident in their decision.

5. CREATING A DREAMY ATMOSPHERE Imagine walking into a home

8. COLLABORATION WITH A LOCAL EXPERT

that feels like a dream. Consider

A friendly, knowledgeable real

rearranging furniture, adding

estate agent can be your greatest

decorative elements, and enhancing

ally. They understand the local

the ambiance. Whether you hire a

market intricacies and can guide

professional or channel your inner

you effectively. Together, you

designer, staging your home can

can create a marketing strategy

create a magical atmosphere that

tailored to your property's unique

buyers fall in love with.

appeal, ensuring it reaches the right audience.

6. GREEN AND SUSTAINABLE LIVING

Remember, selling your home is

Kiwi buyers appreciate sustainability.

Showcase eco‑friendly features like energy‑efficient appliances, native garden landscaping, or rainwater harvesting systems.

These touches not only appeal to their eco‑conscious side but also

confidence in their investment.

add value to your property.

4. SHOWCASING YOUR HOME'S UNIQUE CHARMS

7. ENGAGE ONLINE AND BE TRANSPARENT

What makes your home special?

Is it the spacious backyard, the

In today's digital age, online presence is key. Invest in high‑quality photos

C21 MARKET PULSE

06

CENTURY 21

not just a transaction; it's a journey.

With these friendly tips and a touch of Kiwi hospitality, you can make your property the dream home for someone else. Happy selling!

FIND OUT YOUR PROPERTY’S WORTH IN AN INSTANT Access an instant property report now.

Click here to begin.

C21.co.nz/property-report/

F I R ST- H O ME B U YE R S

FIRST-HOME BUYERS HIT RECORD HIGH 27% MARKET SHARE

BY CORELOGIC NZ

Despite stretched affordability, high interest rates, and cost of living pressures, first home buyers (FHBs) in New Zealand continue to lead the market in purchasing activity, highlighting the continued strong appeal of having a 'foot on the ladder'.

CoreLogic’s six-monthly First

with all six areas recording above-

falling from $720,000 in 2022 to

Home Buyer Report released today

average shares of FHB purchases so

$690,000 in 2023 to date.

shows FHBs accounted for 27%

far in 2023.

of purchases in the third quarter, a new record high. Over the year to date, FHBs sit at 26% market share, comfortably above the longterm average of 21%, however the number of deals still sits below past norms in a relatively subdued market.

Mr. Davidson said the typical FHB

Wider Wellington has held the

often enters the market above the

strongest market share for FHBs

'bottom rung', rather than starting

with 33% of purchases in the year

from the bottom.

to date (4% above normal). At the other end of the spectrum, FHBs in Tauranga held 21% of purchases (5% above normal). Auckland, Christchurch, and Dunedin each

NZ Chief Property Economist Kelvin

report 5% higher than average, with

Davidson said despite some key

Hamilton 6% above for 2023.

challenges for all buyer groups, FHBs are still finding a way.

Provincial markets show a similar trend with Invercargill holding the

“Whether it’s using the low-deposit

strongest market share for FHBs

lending speed limits at the banks,

with 32% of purchases, a significant

tapping their KiwiSaver to help

10 percentage points higher than

with their deposit, securing First

the long-term average. Whangarei

Home Grants or First Home Loans,

and Rotorua are other examples of

or compromising on the size or

‘FHB hotspots’, as are smaller areas

location of their home, FHBs are

such as South Waikato and Clutha.

proving relatively more successful in buying their first home than at any other time,” Mr Davidson said.

The national trends are being reflected across the main centres,

FHB MEDIAN PRICE

than the median price paid across all buyers at $762,500, but it’s significantly higher than the lower quartile across all buyers at $565,000.”

Auckland is the main centre where FHBs pay the most at a median of $875,000 in 2023, $107,000 less than the all-buyer median of $982,000. Median FHB prices paid range between $700-$750,000 in each of Tauranga, Wellington, and Hamilton, and sit at $600,000 in Christchurch, and $530,000 in Dunedin.

Click here to read the full article

FHBs have benefitted from the wider downturn in property values over the past 18 months, with the median price paid by the cohort C21 MARKET PULSE

“For example, $690,000 is lower

08

CENTURY 21