New national record in average asking price

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New national record in average asking price

It’s still a seller’s market as record asking prices in Waikato and Coromandel drive high national asking price average

AUCKLAND, 1 October 2013 – The average asking price for properties in New Zealand is at an alltime high. An increase in asking price across much of the country, as well as record highs in both the Waikato and the Coromandel helped drive the new record. Asking price in Auckland fell just slightly as its regional inventory lifted.

According to data released today by Realestate.co.nz in the NZ Property Report, the seasonally adjusted average asking price rose to $466,526, over $1,300 higher than the previous record set in July this year, and up 8.7% on the same time last year. The new high of $384,595 in the Waikato represents a 0.17% increase on it’s previous high, set in March 2012. While in the Coromandel a new high was set at $505,867.

Phillip Dunn, Acting CEO of Realestate.co.nz says the increase in price “can be attributed to supply and demand” while inventory remains close to an all time low. Inventory figures appear to have stabilised somewhat after last month’s record low of 23.4 weeks but is still the second lowest inventory on record at 24.2 weeks. This is an increase of 585 listings nationally from last month, but compared to last year, is down by 13%.

Last month’s record low number of homes for sale has recovered by 2.7% with 11,000 new listings coming on the market. This is still down by 1.4% compared to this time last year. Across the regions there were no significant highs or lows on new listings. “While stock hasn’t come rushing back this month, the question is, what will happen next month?” said Dunn. Listing trends over the last few years suggest that October’s figures will welcome in a supply of fresh new listings.

Dunn says “it’s too early to see how the government’s new mortgage lending restrictions will impact overall inventory and asking prices in the long term”. Dunn has spoken to a few agents who believe these restrictions will have a flow on effect “depending on where you are, but all in all listings and sales through spring are expected to be strong”.

Even with the slight drop in asking price for Auckland, sellers are still well and truly in control with inventory remaining close to an all-time record low. “We’re still talking 60% below the long term average in Auckland,” says Dunn.

Realestate.co.nz is the country’s most comprehensive property listing website, profiling listings of licensed real estate agents with more than 100,000 listings covering residential, commercial, business and farms for sale.

The October 2013 issue of the NZ Property Report, a monthly report of housing market activity compiled by Realestate.co.nz, can be found along with additional analysis of the property market at www.unconditional.co.nz, the news and information website for New Zealand real estate.

NZ_Property_Report__1_Oct_2013_Realestate.co.nz.pdf

NZ_Property_Report_data_SEP2013.xlsx

ENDS

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