Asking prices for property hit new all-time peak

Sellers’ confidence lifts, but new listings are steadying: report

Auckland, 1 November, 2011 - The average asking price of properties for sale in New Zealand hit a new all time high in October, as sellers continue to anticipate a buoyant market, says Realestate.co.nz.

Data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – revealed the average asking price for property available nationally hit $434,161 in October, surpassing the previous high of $429,250 reached in April 2011.

The Auckland region led the trend, recording its highest average asking price - $568,778 - since Realestate.co.nz began tracking the market data in 2007.

Alistair Helm, CEO of Realestate.co.nz says that the rise in asking price clearly reflects a high level of confidence amongst sellers, who have been encouraged by a high demand for property alongside a steep drop in inventory over recent months.

However, Mr Helm says a steadying of the number of new property listings becoming available last month indicates that the market is balancing out a little.

“Every October, the numbers of new listings tend to surge even higher than September as spring continues to roll on out of the winter doldrums. However, slower than expected September sales this year have precipitated a degree of uncertainty among sellers considering entering the market.”

The number of new listings in October (11,312) was slightly up on September (11,117). However, on a seasonally adjusted basis, this is 11% down on volumes recorded at the same time last year – a considerable drop, according to Mr Helm.

Mr Helm says the combination of these varying factors has resulted in a slight lift in inventory – up to 38.5 weeks – which, while still below the long term average, indicates that the market may be beginning a smooth correction process.

However, he says the New Zealand property market is still clearly favouring sellers in most regions, especially Auckland and also Canterbury, where inventory has fallen significantly to reach its lowest level in two years (25 weeks).

“What we’re seeing emerging here is a mixed-confidence picture. The market is certainly stronger than it has been in previous years, but it is continuing to be tight.”

Realestate.co.nz is the country’s most comprehensive property listing website profiling listings of licensed real estate agents with more than 115,000 real estate listings covering residential, commercial, business and farms for sale.

The latest issue of the NZ Property Report, covering October 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.

About Realestate.co.nz
Realestate.co.nz is the official website of the New Zealand real estate industry, and provides the most comprehensive selection of licensed real estate listings across all categories of real estate. Realestate.co.nz lists more than 130,000 properties each year, representing more than 95 percent of all listings currently marketed by real estate professionals.

ENDS