At first glance the housing market appeared to have a reasonable spring in its step in October but a closer look suggests it may not be as strong as it looks.
The Real Estate Institute of NZ reported 6681 residential sales throughout the country in October, up 10% compared to September.
Additionally the REINZ's national median selling price increased to $795,000 in October, which was up 1.9% compared to September.
Both of those figures suggest the market had a reasonable spring tailwind as it gears up for the busy summer months.
However there were also numbers that suggested the market may not be as strong as it seems.
First, although the actual sales numbers were up on September, the seasonally adjusted sales figure was down 2.6% for the month.
One possible reason for that may have been that there were five Saturdays in October this year but only four in October last year, which could have affected sales patterns.
And although the median selling price increased by 1.9% in October, the REINZ's House Price Index, which adjusts for differences in the mix of properties sold each month and is considered the more reliable indicator of house price movements, increased by just 0.5% for the month suggesting price movements, while positive, remain fairly subdued.
What all that suggests is a market that's warming over spring, as it usually does, but is not running away in leaps and bunds.
Perhaps that's because the biggest changes to the market figures in October were for the number of new listings coming on to the market and its flow on effect on total stock levels, which were up 7.7% in October compared to September.
"Local salespeople note that some buyers remain cautious about overpaying for properties due to relatively high interest rates," REINZ Chief Executive Jen Baird said .
"This environment encourages buyers to be more strategic in their approach, making them feel confident in negotiating with vendors to reach an agreeable price.
The increase in available properties provides buyers with the opportunity to explore a diverse range of options that better align with their individual needs and preferences, allowing them to take their time shopping around," she said.
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REINZ House Price Index - October 2024
Volumes sold - REINZ
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