Steady market presents opportunities
A notable cooling in the market is reflected in February’s Real Estate Institute of New Zealand data. This highlights opportunities for buyers and a more manageable market for consumers to transact in.
The median sale price increased 3.7% to $1,370,000 compared to February 2021, yet down 11.9% from the peak of $1,555,000 in November last year. It should be noted that recent market changes have impacted the various segments of the market differently. Sales over $2M have remained relatively strong with the percentage of sales over this threshold doubling for Harcourts Cooper & Co from 8% of total sales in February 2021 to 17% last month. This in turn also impacts the median sale price.
Sales volumes remain subdued with 260 February sales, 45% lower than February 2021. As a result, we are seeing the Median Days to Sell continue to climb, in February reaching 47 Days, up from 34 in January and the highest since February 2018.
Last week the Government announced changes to the much talked about CCCFA rules (Credit Contracts & Consumer Finance Act). Whilst these were significantly tightened less than 4 months ago there has been ample commentary and complaints that borrowers were being turned down for loans due to spending habits like takeaways. These changes are likely to come into effect in June and particularly benefit first home buyers.
The market continues to search for its new norm. Some exceptional results were achieved in the Harcourts Cooper & Co virtual auction room, where last week over 1,500 people tuned in to watch 50% of the properties sell under the hammer. Demand remains, yet the choice for buyers is up with more stock on the market.
Market update for North Shore market based on REINZ market statistics for February 2022, released 14th March 2022.
