Rise in new listings drives property market into higher gear
Rise in new listings drives property market into higher gear as NZ moves further towards sellers’ market
12 of 19 regions now favour sellers as national inventory falls further
AUCKLAND, 1 September, 2011 – The flush of new listings that typically arrive on the New Zealand property market in Spring arrived early in August, but high levels of sales have kept inventory low, says Realestate.co.nz.
According to data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – new listings in August rose 9% on a seasonally adjusted basis, but inventory dropped for the fifth month in a row to 37 weeks due to high buyer demand.
Alistair Helm, CEO of Realestate.co.nz, says that the overall market is now very firmly pointed in favour of sellers, with 12 of the 19 regions of the country now below their long term average inventory levels.
“It’s a much more buoyant market we are seeing at the moment. The rate of sale is the highest it has been for 18 months. Interest rates are attractive so buyer confidence is healthy. This has led to more sellers entering the market, but demand is continuing to outstrip supply.”
The demand has led to Auckland recording its lowest level of inventory in four years (24 weeks), while the regions of Canterbury, Wellington, Manawatu and Coromandel all moved decidedly in favour of sellers for the first time in over 18 months.
Mr Helm says the rise in new listings has also been accompanied by a slight lift in the average asking price – up 3% from the previous month to $415,078 – suggesting that while the market is definitely leaning in their favour, sellers are not over-confident on price expectations.
“While the end of winter is traditionally the signal for sellers to list their property, the levels we are seeing now should certainly be seen as a further green light for sellers who are considering entering the market.”
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 August 2011, plus more analysis of the
property market can be found on http://www.unconditional.co.nz