Housing market buoyant amid changes to laws, interest rates - REINZ

A third housing report in as many days shows the market slowed to a crawl in December, but the real estate industry is upbeat about growing demand and interest ahead of promised government policy changes.

The Real Estate Institute (REINZ) data for the month showed prices easing slightly, with falls in the number of houses sold and available for sale, but houses selling slightly more quickly.

REINZ's house price index, a measure of the changing value of properties, was down 1.1 percent on the same month a year ago.

REINZ chief executive Jen Baird said the market generally ended the year in a positive mood and in better shape than a year ago.

"The December figures showed a boost in activity in the market compared to a year earlier. We've been observing slow and steady improvement recently and we round out 2023 with continued improvement in sales activity in the market."

The national median price was down 1.9 percent from November to $779,830, with the number of properties sold down 20.8 percent, the number of new listings more than halved, but houses selling on average two days quicker.

But compared with a year ago the market was in a much better shape, with the median price 0.7 percent lower, and sales up 14 percent.

Baird said a more settled financial and political environment appeared to have lifted the mood.

"Many local agents are reporting signs of growing market confidence and activity levels now that the election is over and the new government has begun releasing details about its plans, and interest rates have stabilised.

"While some buyers and sellers are waiting to see what the new year holds, it's clear that there's a growing understanding that the bottom of the market is behind us with annual median prices starting to lift in many regions - it is clear more buyers and sellers feel that now's the time to act," Baird said.

The strongest annual growth was in Tasman and the West Coast at 5 percent, with more modest rises in Nelson, Taranaki, Southland and Wellington.

The REINZ report largely followed those of Quotable Value and property research firm Core Logic.