House price median down but positive signs

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Gisborne house prices are still down on last year but property commentators say the region is showing encouraging signs of recovery.

Latest data from the Real Estate Institute of New Zealand (REINZ) shows the median price here last month decreased by 23.7 percent year-on-year to $515,000.

“Gisborne had the lowest days-to-sell year-on-year at 37 days. This was 26 days less compared to January 2023,” REINZ chief executive Jen Baird said.

“Gisborne’s median inventory was 93 in January 2024. While this was a 25.4 percent decrease year-on-year, it was a 25 percent increase month-on-month.

“The average listings for the region also saw a month-on-month rise, from 19 in December 2023 to 35 in January 2024.

“These are encouraging signs for the Gisborne property market.”

Ray White Gisborne director Shelley Donaldson echoed those sentiments.

“A total of 75 percent of the January market sold under $600,000 — prime first-home buyer and investor markets,” she said.

“If we look back to December, there was an increase in sales year-on-year, so the January numbers being less year-on-year are probably more a reflection of what happened then, not the market as a whole.

“The significantly fewer number of days to sell, combined with 25 percent fewer stock than January last year, are positive reasons to go to the market now.

At halfway through February, we have almost reached the same number of sales as February 2023, and with a strong attendance at open homes, I expect the next couple of months to remain steady.”

Bayley’s Gisborne director Simon Bousfield said there was plenty of activity in the market.

“The number of property proposals being completed across property in Gisborne increased dramatically over the past month,” he said.

“January is generally a quieter month. The median can be better reflected from a quarterly or six- monthly assessments, rather than monthly, due to the ability for property numbers to skew stats.

“Buyers continue to be more cautious, however, they are very present in the market and prepared to transact on the right properties.”