Auctions fall to a seven-year low as buyers and vendors await the vote
New Zealand’s property market slowed ahead of the 7 November general election, with fewer homes listed for sale in October and the number of unsold properties climbing sharply.
Data released by realestate.co.nz shows new listings fell 4.5% year on year in October, a sign many vendors are holding back. National stock, meanwhile, rose 11.4% to 37,433 properties, the most for the month since 2014. That suggests buyers are also taking their time. Agents report the same hesitation, with economist Tony Alexander noting in the latest NZHL Property Report coverage that many buyers are using the election as a reason to hold off.
Buyers keep the upper hand
Stock rose by double digits in 10 regions, led by Gisborne (up 31.4%), Taranaki (up 21.0%) and Marlborough (up 18.2%). Auckland stock climbed 14.1% to 15,046 listings. Southland was the only region with a notable fall, down 5.3%.
Auction appetite at a seven-year low
Vendors are also less willing to commit to a fixed sale date. Auctions accounted for 22.1% of new listings in October, down from 26.2% a year earlier and 28.3% in October 2023, the month of the previous election.
Sarah Wood (pictured), chief executive of realestate.co.nz, said auctions tend to be a barometer of vendor confidence.
“What’s interesting this year is that auctions have fallen to their lowest October share in seven years, even below levels seen during the 2023 election,” she said.
Wood said ongoing economic challenges and global uncertainty were also likely weighing on sellers’ decisions.
Regional divide in listings and prices
New listings fell in 11 of 19 regions. Coromandel recorded the steepest annual drop at 16.1%, ahead of Northland (15.2%) and Central North Island (10.8%). In Auckland, new listings fell 7.9%.
The South Island moved the other way. Otago listings rose 13.1%, and Central Otago/Lakes and West Coast both lifted 8.6%.
The national average asking price fell 2.7% on a year earlier to $840,380. Auckland’s average dropped 5.2% to $984,527, staying under $1 million for a second month, while Otago led the gains, up 13.2%. Canterbury, Southland, Marlborough and Central North Island all recorded their highest October average asking prices on record.
Values are softening too, with Cotality’s Home Value Index falling 0.4% in October, its seventh straight monthly decline.
Wood expects some activity to return after the election but doesn’t see a quick turnaround while stock levels remain high.
“Once the election is behind us, I’d expect some of that held-back activity to come through,” she said.
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