MARKET COMMENT

The New Zealand property market has experienced a slowdown in April 2023, according to REINZ Chief Executive Jen Baird. This is largely due to public and school holidays, as well as the tight economy, which are continuing to affect the market. However, Baird emphasizes that there is some good news amidst the slowdown.

Despite median prices decreasing across the country, they are now moderating, and inventory levels have stabilized. Although sales counts have eased annually, there are reports of green shoots in the market. Baird notes that "our members are seeing further alignment as vendors come with a desire to meet the market – those who are prepared to negotiate and be realistic are the ones selling, there are buyers out there ready to buy. Two districts reached record median prices in April."

Nationally, the median price for April 2023 decreased by 10.9% year-on-year to $780,000. The days to sell have risen to 47 days, only an increase of 2 days compared to March 2023. Baird reports that "Salespeople across the country are reporting positive signs in the market this month as first home buyers show more interest after the Reserve Bank’s announcement on the easing of LVR restrictions"

While the total number of properties sold across New Zealand in April 2023 was 4,262, down from 5,984 in March 2023 (-28.8%), and down 15.3% yearon-year, Baird notes that "for those looking to buy, lower prices and good stock levels mean there are opportunities as we head into the cooler months." She also emphasizes that there is a positive trend in terms of vendor alignment with the market, as more vendors are willing to negotiate and be realistic about their expectations.

In Auckland, the median price has decreased by 15.0% year-on-year and is now below the $1 million mark at $995,000. Owner- occupiers in Rodney and Auckland Central have been particularly active in the market, but there have been fewer first-home buyers. Baird suggests that this may be due to recent changes to Australia's immigration policies, which have led many New Zealanders to pursue opportunities overseas.

Overall, while there is some uncertainty around the economy and securing finance, Baird remains optimistic about the property market in

New Zealand. At the end of April, the total number of properties for sale across New Zealand was 28,643 up 1,593 properties (+5.9%) year-on-year, and down 2.19% month-on-month.

She notes that "despite the current slowdown, there are still opportunities for buyers in the market," and encourages buyers and vendors alike to be open to negotiation and realistic about their expectations.