Mid-Year Market Overview 2024

As we navigate the latter half of 2024, the residential property market in New Zealand is experiencing a significant shift, driven by policy changes and evolving economic conditions.

Hannah Williams

July 1, 2024

News

3 min read

A T REALTY GROUP

Market Overview

A look into the trends, insights and latest property data.

As we navigate the latter half of 2024, the residential property market in New Zealand is experiencing a significant shift, driven by policy changes and evolving economic conditions.

Here at Ray White A T Realty Group, our real-time data offers valuable insights into these dynamics, helping to inform our understanding of the current market landscape. This market overview looks at Ray White data nationwide, to give us a full picture of what’s happening in the market now.

LISTINGS

Our data reveals a substantial increase in the number of live listings on Ray White’s channels.

For the month ending May 2024, the live listings count surged by 26.04 per cent compared to the same period last year. This indicated the more homeowners are choosing to list their properties, contributing to a more active market environment.

ONLINE ENQUIRIES

Despite the rise in listings, there has been a pullback in the number of digital enquiries

In May 2024, online enquiries were reduced by 10.68 per cent year-on-year, even though the number of online users increased by 7.45 per cent.

This trend suggests that potential buyers are exhibiting caution in the current market, possibly influenced by the broader economic conditions and policy changes.

LOAN PRE-APPROVALS

Conversely, the number of loan pre-approvals submitted via Ray White New Zealand’s finance partners has increased. For the month ending May 2024, there were 1,155 loan pre-approvals recorded, marking a 52.98 per cent rise year-on-year. This significant uptick indicates that buyers are actively preparing their finances to capitalise on upcoming opportunities in the housing market.

POLICY CHANGE IMPACT

The introduction of new Debt-to-Income (DTI) settings and eased Loan-to-Value Ratio (LVR) restrictions are changes with critical potential to reshape the market.

These adjustments are designed to maintain financial stability, while allowing greater flexibility for buyers.

Additionally, the reduction of the Brightline test (BLT) from ten years to two years is likely to prompt some property investors to bring their properties to market, increasing supply and potentially stimulating sales activity.

SUPPLY AND DEMAND DYNAMICS

New Zealand’s housing market continues to be characterised by a significant supply-demand imbalance. Strong population growth, marked by net migration inflows totalling 131,000 in the year to March, has exacerbated the pressure on housing resources.

Estimates suggest that the housing deficit could be expanding by as much as 5,000 homes per quarter, leading to a cumulative undersupply of nearly 30,000 dwellings.

Economic challenges and recent tax implications have further constrained developer’s ability to bring new projects to market, intensifying competition for for existing properties. This scenario presents a favourable opportunity for homeowners considering a sale, as current market conditions may allow them to capitalise on demand.

LISTINGS ON THE MARKET

This graph compares the total number of listings live on the market over the past three years.

For the month ending May 2024, this rose to 6,309, reflecting a rise of 41.49 per cent year-on-year.

Source: Ray White Online Analytics

LIVE LISTINGS

This graph shows the total number of live listings on Ray White’s channels.

For the month ending May 2024, our live listings count increased by 26.04 per cent when compared to the same period last year.

Source: Ray White Online Analytics

LOOKING AHEAD

As we look forward to the remainder of 2024, the prospect of easing interest rates and the recent policy changes are expected to positively influence market sentiment.

Ray White’s comprehensive data and insights will continue to provide valuable guidance for buyers and sellers as they navigate the evolving property landscape.

ONLINE ENQUIRIES

This graph compares digital enquiry received on Ray White listings over the past three years. In May 2024, this decreased by 10.68 per cent year-on-year, with the number of online users up 7.45 per cent.

Source: Ray White Online Analytics