Nelson Tasman housing market bucks the trend

While some regions around New Zealand experienced record-breaking slumps in real estate at the end of 2024, Nelson Tasman bucked the trend.

Last week, Realestate.co.nz released their property market data for December.

It shows that asking prices in Nelson Tasman dropped 13.5 per cent in the year to December, from $957,684 to $829,412.

Eleven of 19 regions across the country saw an average asking price decline year-on-year, and Nelson had the second steepest drop, behind Central Otago/Lakes District.

However, some regions hit record-high asking prices in December, such as Southland, with a 15.3 per cent year-on-year increase.

Meanwhile, the national average asking price in December 2024 was $842,476, a level last seen before the market started to boom in April 2021, when it was $839,717.

Nelson Tasman also saw a 14.8 per cent increase in housing stock as well as an increase in listings, according to the data.

There was a 33.1 per cent increase year-on-year for the region, while many parts of the country saw new listings slump to record-breaking levels.

Vanessa Williams, spokesperson for realestate.co.nz says they often see stark regional differences across the country.

“This highlights how critical local market knowledge is when buying or selling.”

Wendy Pearson, owner and sales consultant at Welcome Real Estate, believes one of the reasons Nelson Tasman saw a reduction in asking prices is because we were one of the regions where prices went “unreasonably high” post-pandemic.

“Also, Nelson Tasman has many people working in industries that have seen lay-offs, such as forestry, which impedes people’s ability to pay mortgages, so they have to sell.

“When people have to sell, regardless of the reason, they have to ‘meet the market’  and sell for a price they may not be happy with.”

Tracy Beer from Summit Real Estate says the October-December quarter saw higher sales volumes than the past two years, driven by lower mortgage interest rates.

“Prices remain stable, with well-priced properties generating strong interest.
She says supply and demand appear balanced.

“The year-on-year drop in December asking prices and the increase in stock likely reflect the seasonal unpredictability of December.”

Agents are still seeing plenty of first-home buyers, with 27 per cent of nationwide sales last year going to those getting their foot in the property door.

Regarding the high number of listings, Wendy says properties are often taking longer to sell.

“There continues to be a disconnect between a homeowners’ price expectation and what cautious buyers are prepared to pay.”

Wendy says with interest rates falling, this should encourage more buyers to enter or re-enter the market.

“So, it is a fine time to sell if your price expectations are realistic.”