While we are still at stage 7 of the Property Cycle, which is the best time to invest in property, the market has moved to what is called “Goldilocks market”. A Goldilocks market refers to a market that is “just right” — not too hot (overheating) and not too cold (stagnant or in decline). In this type of market, house prices are stable and growing at a moderate pace, demand is steady, and supply is balanced.
This creates favourable conditions for both buyers and sellers, where neither side has a significant advantage. Buyers can still find affordable homes, while sellers can sell without having to drastically reduce prices. With residential listings currently at their highest level since 2015, you could argue market conditions are slightly in favour of buyers at least from a choice perspective. Investors will have good options for long term investment properties with interest rates dropping.
Find out the latest property market data that will impact buyers and property investors coming into the new year, and what the main drivers of the Goldilocks Market is in our latest FREE Quarterly Property Investment Report.
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As we approach the warmer months, the property market is also warming up. Last month, property sales rose by +10.8% compared to November 2023. Nationally, excluding Auckland, sales increased by 12.9% year-on-year, with notable gains in Gisborne (+55.6%), Hawke’s Bay (+34.4%), and Wellington (+32.3%).
Median prices in New Zealand remained unchanged year- on-year and month-on-month, holding steady at $795,000. Excluding Auckland, the median price saw a slight year-on-year increase of $5,000, rising from $700,000 to $705,000 while remaining stable month-on-month.
Nine out of sixteen areas reported an increase in median prices over the past year, with Southland leading the way with a 17.7% from $440,000 to $518,000, a record high for the region and the first time it has recorded a median price over $500K. Gisborne followed with a 13.4% rise year-on-year to $635,000.
“November saw more life in the property market. Buyers are benefiting from steady prices and increasing options, while sellers in many areas are seeing stronger interest,” says Jen Baird, CEO of REINZ.
Overall, listings nationally increased year-on-year by 3.9% from 10,712 to 11,129, and New Zealand (excluding Auckland) increased by 7.8% from 6,901 to 7,437 compared to November 2023. Eleven out of fifteen regions reported increases in listings compared to last year. The regions with the most significant increases were Southland (+14.5%), the Bay of Plenty (+14.1%), and the West Coast (+13.6%).
For the first time this year, the number of listings in the market decreased compared to October 2024, with a nationwide decline of 3.8%.
Although the Inventory levels (the total number of cumulative listings during the year) are rising, with a national increase of 21.3% year-on-year and a 5.1% increase month-on-month, totalling 33,984.”
“There’s been a shift in market sentiment nationwide in November. After a challenging year, recent data indicates promising signs of increased activity, which we hope will continue into 2025. This is a good time to make transactions, as prices remain stable and interest rate decrease.” Jen Baird concludes in the REINZ NZ Property Report November 24.
This month, Properli released our recommendation on Top Ten locations in NZ to purchase an investment property. These locations were selected based on our unique methodology ranking each region against economic indicators such as long term capital gain, rental yield and supply, and factors such as employment, infrastructure and transport. Here they are:
If one of your new year goals is to review and improve your financial position, and you want to discuss investing in property with an expert Adviser, get in touch with our team. We have bookings available again from 6th January.
