The sale of homes in Aotearoa has increased for the first time since 2021, according to new data by CoreLogic.
In CoreLogic's Monthly Housing Chart, released on Thursday, it revealed a 7.5 percent increase in the number of residential sales for the month of May compared to the same time last year.
"It's the first annual increase in sales transactions since May 2021."
CoreLogic's chief property economist Kelvin Davidson said the annual increase of 7.5 percent will be welcomed new by most but not all property market participants after "such a long decline".
Davidson said it may be too early to "emphatically call it a new trend", but said it looks "more certain that sales volumes have finally bottomed out".
CoreLogic's statement said figures also showed new listings over the month of May, ending June 6, remained at -28 percent below the same time in 2021 and -20 percent below the previous five-year average.
Davidson said the figures show the market "may be approaching a trough".
"As the flow of new listings remains low against a backdrop of rising sales, we are starting to see a tightening of stock on the market, which in turn may start to contribute to competitive price pressures."
He said available listings are about 5 percent lower than the same period in 2022, "with stock tightening in key regions such as Auckland, Bay of Plenty, and Wellington".
Davidson added 2023 is looking to be a "year of two halves".
"Factors such as a broad peak for mortgage rates and still-strong employment should underpin some kind of growth in sales/mortgage activity later in 2023, with prices finding a floor – which will be good or bad, depending on your perspective."
He said the end of the downturn won't see a sudden start of an upturn, but added: "Housing affordability is still stretched, and caps on debt to income ratios loom large in 2024."
