Caution to Confidence to Camp Stretchers!
If I were a betting man, I wouldn’t be surprised if bank staff and mortgage brokers have set up camp stretchers in their offices to handle the avalanche of enquiries coming their way!
As we’re almost two months into the new year, the state of New Zealand’s housing market is looking better—albeit slowly. The Reserve Bank’s decision today to drop the Official Cash Rate by 50 basis points to 3.75% will give the market a nice push forward.
This market shift is clearly visible in the annual number of residential property sales, which have climbed from 59,000 in mid-2023 to nearly 71,000 now. Prices? They’ve seen a modest bump, up about 2.5% since mid-2023.
Historically, January’s lower sales numbers make sense due to council and legal closures during the festive season. But the figures are bouncing back, with national sales up 17.5% compared to January 2024. Invercargill? Sales in our city last month 34.7%. Days on market? Excluding Auckland, the national average was 56 days in January, with Southland seeing an average of 49 days (a bit of a Christmas-New Year bump, with solicitor closures) up from the 10 year average of 41-days.
New Year, New Properties!
All 15 regions across New Zealand saw spikes in activity this January. Invercargill’s new listings (170) were on par with spring months, like October last year. Fast forward a month, and there are nearly 450 properties offering fabulous choice in Invercargill. And while land-only listings make up about 18% of that, it’s safe to say there’s plenty of choice by geo-location and price for bare land.
And speaking of first-time buyers—our sales team is reporting seriously strong interest in homes priced under $500,000.
The Million-Dollar Market
So, where are the million-dollar buyers? It’s likely a temporary lull—just eight weeks into the year, everyone’s still finding their rhythm before committing to those big-ticket purchases.
Green Shoots for Investors
Investors are starting to look South for rental yields, with Southland emerging as one of the top spots in the country for high-return investment properties. Why the hesitation? A slower pace of price rises, more stock, and the higher cost of holding properties due to rising rates and insurance premiums are factors. Add in the new debt-to-income rules, which cap investor debt at seven times their income, and investors have a lot to crunch.
Quick Facts to Know
A Couple of Key Takeaways:
And for the record, AI is “Agent Intelligence”—not some fancy tech gadget! We’ve got the brains and the boots on the ground.
Steve Lindsay
General Manager
Ray White Invercargill
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