March solidifies the changes in the market seen over the past months as pressure on property prices eases, inventory levels increase, demand softens and sales activity decelerates, according to the latest data from REINZ.
Median prices for residential property across New Zealand increased 7.9% annually, from $825,000 in March 2021 to $890,000 in March 2022.
While we continue to see prices increase annually —in all but one region — the rate of growth is slowing, sales activity is down and the median days to sell is up. We’re seeing the market moderate as people settle into this phase of the property cycle.
Jen Baird, Chief Executive at REINZ, says, “The impact of tighter lending criteria, LVRs, and increasing interest rates coupled with inflation, continue to reduce the pool of buyers who are willing and able to pay market prices. The increase in interest rates over the past months presents one of the greatest impacts to the market.
What we are seeing is that transactions are happening and properties are changing hands — just not as quickly.
While we still see annual increases in terms of the REINZ House Price Index (HPI) in all areas, the rate of annual increase is decreasing and we have come down 4.3% from our peak in November. In March, only two regions – Otago and Southland — saw a month-on-month increase.
The median days to sell in New Zealand excluding Auckland also increased by eight days to 34.
In March 2022, for New Zealand excluding Auckland, inventory increased 33.8%, from 11,155 one year ago to 14,923.”
Fast facts for Invercargill City:
|March 2021||March 2022|
|New listings to the market (Dwellings & land)||164 properties||124 properties|
|REINZ Reported Sales (Dwellings & land)||175 sales||124 sales|
|Average Days on Market (Dwellings only)||23 days||32 days|
- Top three selling suburbs / areas March 2022: Otatara (17), Windsor (13) & Strathern (8).
- Unprecedented 9 sales at / + $1.0m reported for March.
- Auction sales a modest 4% of the 124 sales reported Mar-22.
Data Source: REINZ