Photo: RNZ
The reduction in the official cash rate is flowing through to the property market with improved buyer sentiment.
A new property report from realestate.co.nz shows buyer enquiries increased by 8.5 percent in August in the fortnight following last month's OCR cut to 5.25 percent.
The national average asking price dipped to $844,595 in August, the lowest in three-and-a-half years, with a further a 0.5 percent decrease from July and a 3.4 percent decrease from August 2023.
Stock levels remain high increasing across the country by 30 percent year-on-year in August.
August also marked a return to seasonal listing trends, according to realestate.co.nz chief executive Sarah Wood.
"The rise in new listings suggests that vendors view this as a favourable time to sell, likely in response to a more positive sentiment in the market and increased buyer activity," Wood said.
"Prices remain stable around the mid $800,000 mark, continuing the flat trend observed over the past 18 months," she said.
Auckland saw a slight increase in its average asking price to $1.04 million, month-on-month for the first time since April, while Southland hit a new peak.
Southland surpassed the $550,000 mark for the first time since records began, reaching a 17-year average asking high of $558,314.
Wairarapa also saw a 5.2 percent increase compared to July and a 14.4 percent rise on the same time last year.
In contrast, several regions also saw declines in average asking prices.
Bay of Plenty, Coromandel, Manawatū/Whanganui, Marlborough, and West Coast were all lower than the previous month and year.
New listings increased by 8.1 percent year-on-year in August with the market hinting it will once again pick up in spring.
"Historically, the market has seen a steady rise in new listings during August, but this pattern has been notably absent since 2020," she said.
"The return of this seasonal trend could indicate that we are entering a new phase of the cycle."
In August, 16 of 19 regions saw an increase in new listings. Only Nelson & Bays, Northland, and Coromandel bucked the trend, with decreases of 18.1 percent, 11.1 percent, and 5.9 percent, respectively.
"Kiwis have a love affair with property, and while economic factors can sometimes dampen that enthusiasm, it never truly fades. We've heard that people have been waiting in the wings, and our data supports that," Wood said.