NZ Property Report - 1 October 2011

Asking prices for homes rise as Spring surge of new listings hits property market

Inventory stabilises, but market still favouring sellers says Realestate.conz

AUCKLAND, 1 October, 2011 – The average asking price for New Zealand properties for sale jumped significantly in September, signalling that seller confidence is continuing to grow as the traditional Spring surge of new listings arrived on the market.

Data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – shows the average asking price rose to $425,565, up 2% on a seasonally adjusted basis, as 11,117 new listings came onto the market – a jump of 10% from the previous month.

Alistair Helm, CEO of Realestate.co.nz, says that the rise in asking price shows that sellers are clearly looking to capitalise on the higher demand for property.

“Sellers have seen the growing demand for new properties and responded accordingly. It’s likely that we may see asking prices rise further as sales remain strong and this confidence grows further in the months ahead.”

Mr Helm also says that the stock of unsold houses on the market has finally stabilised after dropping for five consecutive months, lifting slightly to 37 weeks up from 36 weeks in August.

“This is still well below the long term average of 41 weeks. If historical precedent is any indicator, this could likely continue to plateau for the foreseeable future,” says Mr Helm.

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 latest issue of the NZ Property Report, covering September 2011, plus more analysis of the property market can be found on www.unconditional.co.nz, the news and information website for New Zealand real estate.

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