Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Home buyer demand continues to outstrip supply


Home buyer demand continues to outstrip supply
as inventory of unsold property hits five year low

Jump in regional asking prices bumps national average to another record high


AUCKLAND, 3 December, 2012 – The New Zealand property market tightened further in November as ongoing high demand from buyers drove inventory levels of property for sale to a five year low, while asking prices registered another record high.

According to data released today in the NZ Property Report, inventory – which is measured by the number of weeks it would theoretically take to sell all unsold housing stock on the market – fell to 28.7 weeks in November (seasonally adjusted); a 29% drop from the same month last year, and well below the long term average of 39 weeks.

The drop was felt most keenly in Auckland, where inventory has fallen to just 15.5 weeks; its lowest level since Realestate.co.nz began collecting the data in 2007. This is half the long term average of 31 weeks, while also 20% down on the previous month and 43% down on November 2011.

Paul McKenzie, Marketing Manager for Realestate.co.nz, says that following a strong month of sales in October which saw 6,640 properties change hands (according to REINZ Residential Market Statistics), numbers of new listings from vendors are not keeping pace with buyer demand.

“Numbers of new listings are traditionally up at this time of year, and November was no exception, with 13,571 new listings arriving on the market,” says McKenzie.

“However, as has been the case for much of this year, such low levels of inventory place the market firmly in seller’s favour. This has been reflected once again in the average asking price this month, which has topped October’s record high to register a new high of $446,277.”

Mr McKenzie says that while sellers still have the upper hand, the message clearly coming from this activity is that there are still plenty of buyers keen to get into the property market.

“This eagerness to buy is matched by the availability of attractive mortgage packages, but is not being met with a sufficient supply of new property listings, which is continuing to drive the current sellers market. From this, we can anticipate that the market will remain tight for the foreseeable future.”

Realestate.co.nz is the country’s most comprehensive property listing website profiling listings of licensed real estate agents with more than 110,000 real estate listings covering residential, commercial, business and farms for sale.

The November 2012 issue of the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – can be found along with more analysis of the property market on www.unconditional.co.nz, the news and information website for New Zealand real estate.

http://img.scoop.co.nz/media/pdfs/1212/NZ_Property_Report__1st_Dec_2012_Realestate.co.nz.pdf
- ENDS -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news