House Sellers in New Zealand Increasingly Agree to Price Discounts, New Data Shows

Date Published: 10 January 2024

Key Facts

• Wellington sellers took a median estimated 4% discount during last year.
• Far North, Thames-Coromandel, Kaipara, Clutha, Western Bay of Plenty, and central Auckland house sellers were more flexible with their selling price in the previous year, based on CoreLogic data.
• In other areas like Upper Hutt, Ashburton, Porirua, Christchurch, Waimakariri, Selwyn, and Hastings, vendors accepted a median 3% discount from their asking price.
• However, in regions like Far North and central Auckland, the price reductions were as steep as 7%.
• Real Estate Institute’s house price index was down 0.2% year-on-year in November.
• In late 2023, sellers received a median $73,000 more than the asking price, showing an improvement from 2021 when buyers paid an extra $192,000 over the listing price for the median home.
• It is observed that houses are selling below rating valuation – often 5% to 10% below.

Article Summary

As indicated by last year’s data, many Kiwi home sellers were willing to adjust their asking prices to secure a sale. Wellington sellers accepted a median 4% discount, while others in areas like Far North and central Auckland accepted even steeper reductions. These vendors decreased their prices by as much as 7%. On the other hand, sellers in Upper Hutt, Ashburton, Porirua, Christchurch, Waimakariri, Selwyn, and Hastings allowed for a median 3% discount.

In November, the Real Estate Institute reported a 0.2% year-on-year downturn in its house price index. However, Auckland’s and Wellington’s asking prices saw a greater reduction, falling 8.4% and 8.3% respectively from a year ago. Despite this, Christchurch’s asking prices managed to increase by 0.2%. However, the market saw a late rise, with homes selling for a median of $73,000 above their listed price.

Observers have noted that it remains a buyers’ market, with properties more likely to sell at more realistic listing prices. Houses have frequently sold at 5% to 10% below their rating valuation, illustrating continued softness in prices and good deals for buyers. The expected drop in fixed home loan interest rates could potentially steady prices. Properties that are priced appropriately might experience little to no discount at all, contingent on the urgency of the sale.

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