New Zealand’s average asking price hits all-time high

New Zealand’s average asking price hits all-time high as numbers of new listings lift

Record asking prices in Auckland and Canterbury drive national average to new high-water mark

AUCKLAND, 1 August 2013 – The average asking price for properties in New Zealand is an all-time high. After dropping slightly in June, July witnessed a considerable spike as sellers remain confident. Auckland, Canterbury and the West Coast all saw new record high asking prices.

According to data released today by Realestate.co.nz in the NZ Property Report, the seasonally adjusted average asking price rose to $465,191, more than $10,000 higher than the previous record set in May this year, and up 8% on the same time last year. The new high of $639,685 in Auckland represents a 1.3% increase on it’s previous high, also in May. While in Canterbury and the West Coast new highs were set at $422,043 and $318,816 respectively.

Paul McKenzie, Marketing Manager of Realestate.co.nz said that the record figure is substantial, even when considering the market is in upward trend. “Asking prices are in a growth curve, but a $10,000 increase on the previous high is significant. That’s an 8% increase on July 2012; to put that in context, the last time we saw a record monthly high in asking price in May, it amounted to a 4% increase on the previous year.

Numbers of new listings recovered from a low month in June, McKenzie says it was the strongest July for monthly listings since 2010. “This is the first time since 2009 that we’ve seen new listing numbers higher in July than June, ordinarily we’d expect to see them start pick up around September. I expect to see new listings continue to rise in the coming months, with this corresponding in an ease in inventory levels.”

Over the month of July, traditionally the low point for new listings, 9,587 new listings came to the market, up 5% on the same time last year and 9% on June. However, listings were down on the east coast of the North Island however; with both Gisborne and Hawkes Bay posting all-time lows.

The healthy number of new listings helped to ease inventory, which currently sits at 26.7 weeks, up 7% on last month’s record low. However, this still represents a 14% dip year on year and is well below the long-term average of 38 weeks.

Realestate.co.nz is the country’s most comprehensive property listing website, profiling listings of licensed real estate agents with more than 110,000 listings covering residential, commercial, business and farms for sale.

The August 2013 issue of the NZ Property Report, a monthly report of housing market activity compiled by Realestate.co.nz, can be found along with additional analysis of the property market at www.unconditional.co.nz, the news and information website for New Zealand real estate.

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