Property sellers refusing to budge on asking price

Property sellers refusing to budge on asking price despite persistently high stock of unsold houses

AUCKLAND, 1 July 2010 – Property sellers are sticking to their guns, refusing to drop asking prices in the face of a continuing high stock of unsold houses, according to the latest NZ Property Report, a monthly report of market activity compiled by Realestate.co.nz, the country’s most comprehensive property listing website with more than 118,000 listings. The latest issue, covering June, is published on www.unconditional.co.nz, the news and information website for New Zealand real estate.

The average nationwide asking price of sellers in June rose slightly by $2,709 to $410,058, despite inventory levels of unsold houses remaining high at 45.3 weeks, a drop of only 1.7 weeks from May. Inventory is measured by the number of weeks of sales necessary to clear properties on the market at any one time. With consolidated long-term data indicating 38 weeks to be the national threshold between a market favourable to either sellers or buyers, current inventory levels continue to show that New Zealand property remains a buyer’s market.

Alistair Helm, CEO of Realestate.co.nz says, “While at first glance the market appears to be relatively flat, the data highlights subtle changes. The June figures show more convincingly that metropolitan areas are more active than provincial New Zealand with property clearing faster. Inventory fell more in the three largest cities than the national average, while the number of new listings dropped 11 percent compared to five percent nationwide. Wellington led the pack, with new listings down 18 percent. Conversely, provincial areas saw listings rise one percent, with inventory levels remaining high.

“Although the national market favours buyers, there are pockets emerging around the country that may soon favour sellers. In fact, Nelson has already become a seller’s market with inventory levels below the long-term average,” said Mr Helm.

Go to www.unconditional.co.nz for the full NZ Property Report.

ENDS

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