New Zealand houses taking less time to sell as buyers emerge

NEW Zealand houses are taking less time to sell as rising prices encourage more buyers to enter the market.

The median time to sell a house in October was 37 days, Real Estate Institute of New Zealand (Reinz) data showed on Thursday (Nov 16). That’s the lowest since March 2022 and down from a peak of 60 days in February this year.

House prices in New Zealand are recovering after a prolonged slump that coincided with a steep rise in mortgage interest rates. Prices rose for a fifth straight month in October, gaining 1.1 per cent from September, the institute said.

The recovery comes amid expectations the Reserve Bank may be finished raising the Official Cash Rate, while the warmer spring weather traditionally revives buyer interest. Investors have also been encouraged by the success of centre-right parties at last month’s election because they campaigned to reinstate tax breaks.

“Local agents are reporting a lot more activity across buyer groups,” said Reinz chief executive Jen Baird. “They’re noticing more investors and first-home buyers looking to secure properties, sharing the market with vendors who are showing a willingness to be realistic with their price expectations.”

House sales in October rose 8 per cent from a year earlier, the institute said.

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Baird said the number of new listings in October surged 22 per cent from September.

“The increasing number of listings coming to market is showing a slow but marked improvement to the past year,” she said. “Many vendors and buyers are showing confidence that it’s a better time to sell and a good time to buy.” BLOOMBERG