Sellers Drop Prices As Property Market Loses Pace

Sellers Drop Asking Prices Further As Property Market Continues To Lose Pace

High number of unsold houses edges up in July in the face of falling sales volume and fewer listings

AUCKLAND, 1 August 2010 – The average nationwide asking price of sellers in July fell to $400,481, from $410,058 in June, reaching its lowest level in a year and coming close to matching mid-2008 levels. The July statistics have been released today in the latest 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 July, is published on www.unconditional.co.nz, the news and information website for New Zealand real estate.

Inventory levels of unsold houses, as measured by the number of weeks of sales necessary to clear properties on the market at any one time, continue to remain high at 46.8 weeks, a three percent rise on June, but a staggering 42 percent increase on the same time last year.

Alistair Helm, CEO of Realestate.co.nz says, “While there’s usually a drop in asking price in Winter, the consistently high level of inventory in 2010 compared to last year highlights a more fundamental contraction in the property market. With sales slowing, prices falling and inventory levels of unsold houses rising, the conditions in July were a reality check for sellers, as they recognised the need to find a competitive price. We see no signs of price appreciation in the market based on current conditions.

“To give some perspective, at current sales volumes it would take nearly a year to clear current inventory on the market if no more houses were listed today,” said Mr Helm.

With consolidated long-term data indicating 38 weeks to be the national threshold between a market favourable to either sellers or buyers, current inventory levels continue to show that New Zealand property remains a buyer’s market.

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

ENDS

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