Surging listings and forecasts of even lower interest rates are powering the resurgence of the New Zealand property market.
And bellwether market Auckland is back.
Its average sale price is up 1.2% to $1.303 million, and its prestigious suburb of Matakana recorded quarterly value growth of 5.6%, putting the average price of a home above $2 million.
The average Auckland property value has now increased $16,000 in the past 12 weeks.
Out in the regions, the West Coast led the way with a 2.1% rise in values.
The average price of a home now stands at $485,000, making it our most affordable region.
The Real Estate Institute of New Zealand says it’s seeing buyers particularly active in the $500,000-$1m bracket.
More than 43,000 residential properties are for sale currently. Almost 35% of that total is in Auckland, which has close to 15,000 homes on the market.
Meanwhile, Wellington and Canterbury are having fluctuating fortunes. Canterbury saw values fall 0.3% ($2000) to $787,000. In the previous three months to January, it recorded a 0.6% rise.
Wellington has also lost some of its gains. Its average price dipped 0.6% after recording a 1.6% rise in the previous three months. The average cost of a property in the capital now stands at $859,000.
The market mood has been bolstered by commentary from the Reserve Bank of New Zealand (RBNZ), which said the current cash rate of 3.75% could fall to 3% by the end of this year.
Economists had previously assumed the rate would not reach 3% until the end of 2026.
The RBNZ statement has fuelled further speculation that we’re about to see another round of interest rate cuts. Our central bank began reducing rates from a high of 5.5% last August.