Key Facts

  • The proportion of properties resold for more than their original purchase price has slightly decreased to 92.9% in Q1 of 2024 compared to the previous quarter’s 93.5%.
  • Sellers aren’t always seeing a cash gain unless they are owner-occupiers downsizing, or investors selling out.
  • National average housing value was flat with a minor 0.1% rise to $926,772 in three months by April 2024.
  • The national median sale price rose 1.3% YoY to $790,000 but fell 1.3% from March 2024.
  • Several cities experienced flat or negative growth rates while some cities like Invercargill and Rotorua saw home values increase.
  • ASB Bank makes its eighth cut this year due to falling wholesale interest rates. Their three-year term will fall from 6.65% to 6.39% and the four year rate from 6.49% to 6.39%.
  • Inflation is expected to fall back into the RBNZ’s target band in the next year, with likely interest rate cuts by year-end.
  • A $20m community housing project believed to be the largest in the Far North is currently underway in Kaikohe.

Article Summary

In a shift towards buyers, market power is transitioning from sellers with property resale profits slightly dipping. Over nine in ten properties are still being resold for a gain but CoreLogic claims this doesn’t always result in a financial benefit for sellers. Over winter, vendors with unsold properties may possibly face a slowdown.

On average, the national housing value has remained relatively flat with a meager rise of 0.1% to $926,772 over three months leading up to April 2024. The national median sale price, however, contrasts this trend and increased by 1.3% YoY to $790,000 while conversely falling 1.3% from the previous month. City outcomes varied with several cities experiencing negative growth while others reflected an increase in home values.

Following wholesale rate reductions, ASB Bank has made further cuts to its lending rates. While inflation is expected to decrease over the next year to fall within the RBNZ’s target band, allowing an anticipated reduction in interest rates by year-end. In the social housing sector, a $20m housing project, touted as the largest in the Far North, is in development in Kaikohe.

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