An Early Easter Could Accelerate Real Estate Activity Ahead of Schedule
After experiencing a period of increased activity and growth in October and November, the customary Christmas hiatus led to a deceleration in real estate transactions in December.
Nevertheless, the prospect of a March Easter break could motivate a greater number of buyers and sellers to commence their actions ahead of time, sparking increased market activity.
In December 2023, realestate.co.nz reported that it marked the lowest month on record for new listings nationwide.
However, some regional areas bucked this trend. In the Coromandel region, known for its sunny weather, there was a noteworthy 21.9% year-on-year increase in new listings, accompanied by a substantial 35.6% rise in stock.
Despite a brief dip in November, average asking prices in Coromandel surpassed $1 million. Simultaneously, the Central Otago/Lakes District set a record for the highest average asking price in any region, reaching just under $1.6 million.
Vanessa Williams, spokesperson for realestate.co.nz said, “Regions like Coromandel often display a unique resilience during the holidays. The allure of beachside living and holiday homes tends to keep activity buoyant during this time.”
“Moreover, the surge in new listings in this region suggests vendors were capitalising on higher visitor numbers.”
In late December, CoreLogic NZ Chief Property Economist Kelvin Davidson said there are signs of the country's upturn slowly broadening looking at growth patterns across the past three months.
Average property values recorded a 1.1% rise nationally over the three months to November and saw the smallest annual drop (-4.5%) since the same time last year.
The main centres were fairly strong over September to November, with only Tauranga recording a decline (-0.6%) in median property values according to CoreLogic.Dunedin led with a nearly 3% lift in values and Christchurch closely followed at 2.0%. Both Auckland and Wellington saw property values increase by 1.2%.
Kelvin Davidson said the market's recovery has certainly arrived but is in its early days.Keith Niederer, General Manager, NZ, Raine & Horne, noted that a dip in real estate activity in December is not uncommon.
"In December, it is common for some sellers to delay listing their properties, choosing to wait for the new year when buyers typically resume attending open house inspections," Keith explained.
He added, "Given the early arrival of Easter this year, it is reasonable to anticipate an early surge in both buyers and sellers eager to make their moves before the upcoming holiday period."