House sales up 16pc in November over October but prices flat, REINZ figures show

The number of houses sold rose 16 per cent in November. Photo / Fiona Goodall

House sales are picking up as listing numbers increase.

The Real Estate Institute’s (REINZ) November data indicates an increase in sales with more listings coming to market and fewer days to sell.

REINZ’s house price index, which measures the changing value of properties, rose 0.8 per cent in November over the month earlier, but fell 0.2 per cent on 2022.

The five-year average annual growth rate was 6.1 per cent.

However, REINZ chief executive Jen Baird said there was more confidence in the market.

“Overall sentiment appears to be more positive, although this does vary by region,” Baird said.

“Open home attendance numbers and auction room activity have picked up as well in many parts of the country and we expect to see the number of properties sold across New Zealand increase in December, as we enter the busier season for real estate and people taking action to sell or buy before the pause at Christmas.”

The number of properties sold rose 16 per cent in November over October and were up 12 per cent on the year earlier.

However, there was little month-on-month change in the national median sale price which rose $1000 in November to $790,000, which was down 2.0 per cent on the year earlier.

“Year-on-year numbers remained mixed but we are watching more signs in the rolling months of an improving market.”

She said high interest rates were keeping the market from heading up, with a slow-down expected during the typically quiet Christmas period.

“We anticipate seeing a resurgence of activity from the end of January, as the boost in market positivity helps raise confidence further,” Baird said.

“We’ve seen a large jump in the number of listings coming to market this month compared to last month. Notably, Gisborne with a 75 per cent increase and Manawatū-Whanganui, Wellington, and Nelson all reached increases in the mid-20 per cent range.”

Westpac senior economist Satish Ranchhod, said New Zealand’s housing market continued to tread water in November, with prices effectively tracking sideways and sales still low.

"In part, the recent softness in the housing market may reflect some lingering uncertainty related to October’s election. The big question is how enduring this softness in the housing market will be?

“We expect that high interest rates will continue to be a brake on house price growth for some time yet. That’s made serviceability tougher for first home buyers and those looking to upgrade. It also means that net rental yields are still low.”

But he expected activity to pick up over the coming year and forecast prices to rise by close to 8 per cent in 2024.

-RNZ with additional reporting NZ Herald staff reporter