Sellers Remain Resolute On Price Despite High Number Of Unsold Houses

AUCKLAND, 1 May 2010 – Despite the continuing high number of unsold houses, sellers seem prepared to button down for a longer sales cycle, remaining steadfast on asking prices, according to April property data released today. The average asking price of sellers in April remained largely unchanged from March, at $422,520, which is only two percent below the market peak in October 2007. However, the inventory level of unsold houses, as measured by the number of weeks of sales necessary to clear properties on the market, remains high having dropped slightly from 53 weeks in March to 46.5 weeks in April.

The figures were released today in the 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 April, is published on www.unconditional.co.nz, the news and information website for New Zealand real estate.

Alistair Helm, CEO of Realestate.co.nz says, “We’ve got massive inventory on the market, but sellers aren’t getting desperate. In fact, we’re seeing asking prices remain quite steady, reinforcing the sentiment that sellers are becoming accustomed to a longer sales cycle as the ‘new norm’ for real estate. Houses are typically Kiwis’ biggest assets, so they’re not prepared to capitulate on price when selling, despite the high levels of inventory.

“The volume of new listings coming onto the market in April fell 15 percent from March, which is a typical seasonal reduction. But with more than 46 weeks’ worth of inventory across the country, this does not necessarily indicate a shortening of supply. While there is a real inventory gap between metropolitan and provincial New Zealand, where homes in metropolitan areas have a significantly shorter sales cycle, in April that gap narrowed. Today, houses for sale in the three main cities would clear the market in 40 weeks, while in rural and provincial areas the cycle would take more than 70,” said Mr Helm

Overall, the market continues to favour buyers based on the available stock of unsold homes and the number of new listings hitting the market.

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

ENDS