Falling interest rates over 2024 have helped the property market.

Confidence has improved and more homes have been changing hands.

Here are five key trends that took hold in 2024, and are likely to evolve.  

More listings

Vendors have appeared more willing to put their properties on the market in 2024. New listings volumes were up 24 percent in the nine months to the end of September, equal to just over 17,000 more homes for sale. In October, an increase in new listings pushed the number of properties for sale to a 10-year high.

Improving confidence

Falling interest rates and signs of an economic improvement in 2025 have given more people confidence in the future of the housing market. ASB’s September housing confidence survey showed an increase across all its measures – house price expectations lifted, people expected interest rates to continue to drop and more people felt it was a good time to buy.

Real Estate Institute chief executive Jen Baird said salespeople were reporting more confidence from buyers and sellers as spring took hold in October.

Property investors return

With the return of interest deductibility and shortening of the bright-line test, as well as falling interest rates, conditions started to look more favourable for property investors in 2024. Corelogic data showed they seemed to be getting back into the market, particularly those with just a few investments.

First-home buyers still buying

While investors were more active, it wasn’t at the expense of first-home buyers. Their market share was at record highs throughout 2024. Corelogic said they had been getting more for their money, too, with market conditions on their side and a good selection of homes to choose from. They were also making good use of their KiwiSaver and banks’ ability to offer some of their new lending to people with smaller deposits.

More sales

Sales activity picked up, particularly as spring took hold. The Real Estate Institute said there were 20 percent more homes sold in October than the same month a year earlier. Auckland real estate agency Barfoot & Thompson said November was a strong month, with the “long-awaited return of strong trading finally arriving”.

What next?

2024 began with the tail end of what has since been described as a “dead cat bounce” as sales prices picked up towards the end of 2023 before dropping away again. But commentators expect increased activity to mean prices pick up more seriously in 2025. Westpac expects an increase of 8 percent next year.

Ready to make a move?

If you’re thinking about making a move in the property market as this year ends, or as the next begins, get in touch.  Whether you are considering taking out a new loan, or making changes to existing borrowing, SHARE’s expert team of financial advisers can help.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.