How’s the Auckland property market looking in 2024?

How’s the Auckland market been looking in the first couple of months of 2024?

What a difference a few months can make. Heading into the end of 2023 listing volumes throughout Tāmaki Makaurau (Auckland) remained subdued. We saw encouraging signs with volumes lifting in November by 6% (year-on-year) but not really delivering on the promise that post-election there would be a significant flurry of activity. Fast forward to today and listing volumes are well and truly back, with February volumes looking to land 30% up on 2023.

What are sellers thinking in Tāmaki Makaurau?

There’s a little more certainty in the property market. We have a new government who have signalled policies that promise to stimulate the market like reinstating interest deductibility and reducing the brightline test. Interest rates have stabilised and in some cases started to fall. And price growth has returned after the month-on-month drops recorded in 2023.

This certainty has encouraged sellers to return to the market. Listing volumes coming to Trade Me Property in Aotearoa's largest city are up 30% in 2024 when compared to the same period in 2023. Not quite the record highs seen in 2021 but a strong recovery nonetheless.

How about Auckland buyers?

On the other side of the market, buyers are now faced with more options. The pent-up demand of October and November has subsided, presenting a new challenge for sellers who need to make their property listing stand out from the crowd.

At this time, buyers are more likely to walk away from a property if they don’t see value. They have the freedom to be more deliberate in their decision-making which eases the stress of house hunting. There’s more time to focus on the remaining issues of accessing finance and affordability challenges.

We can see this playing out through unpredictable clearance rates at local auctions and the median number of days a property stays on Trade Me (days on site) staying relatively high at 57 days (we would define a normal market closer to 50 days and a hot market 28 days).

Where to from here?

We expect these current market dynamics to exist for the remainder of the summer/autumn selling season. Buyers will continue to have choice but with financial challenges remaining it is unlikely that we will see a rapid rise in house prices or a significant reduction to days on site. Naturally there will be exceptions to this throughout the city.

How to put your best foot forward in this market

Buyers - ensure you save searches on Trade Me Property but also get out and attend auction events and engage with local agents to keep your finger on the pulse. Tāmaki Makaurau has some of the best agents in the country.

Sellers - spend time researching which agents understand your local area and engage with them. They will have a detailed view on the dynamics of your local market and provide guidance on the best way to bring your property to market. They will also understand that investing in the marketing of any property is critical.

Author

Gavin Lloyd

Sales Director, Property - trademe.co.nz

Gavin Lloyd is a seasoned professional in sales and business development, driven by a passion for creating high performing teams and achieving growth. With over a decade of experience in the property industry, Gavin consistently showcases his expertise in crafting and executing strategic plans that yield tangible results. His extensive background in the online space, affords him an in depth perspective on this ever-evolving business landscape.

Gavin actively engages in the real estate sector, leveraging his profound insights through presentations and active participation in roadshow events. Gavin is also a regular contributor in news spots and radio broadcasts. As the Director of Sales at Trade Me Property, he continues to evolve and adapt alongside his team, ensuring that the information and value they offer remain pertinent, supportive, and instrumental in driving positive change.