It’s a Seller’s Market in New Zealand
14 July 2011
The New Zealand property market is very much biased towards sellers due to the decrease in the number of properties for sale. Latest figures show that the average price for all new listings increased from $414,308 in May 2 $415,053 in June. When seasonally adjusted, prices rose by 0.8% showing that sellers still remain cautious over the state of the market.
The last two years have showed that property prices have increased steadily albeit slowly, although the number of new listings coming onto the market last month fell to just 9,111 which is a year-on-year decline of 18%, but a 2% rise on May figures.
Over a 12 month period the number of new listings has dropped by 14%, and the number of unsold homes on the market is continuing to fall. There were 50,398 unsold homes in April, which dropped to 48,352 in May and just 47,738 in June. This fall represents the strength of sales and during the last quarter, but is unlikely to continue as the winter period begins.
Just one area in the central North Island showed a rise in new listings compared to June 2010, and this area is also unusual in that it is more of a buyer’s market as the unsold inventory is currently exceeding long-term average figures. There are still nine regions in the provincial areas which are still very much a buyer's market.
In most areas the inventory of unsold homes are now at or below the long-term average. The regions to see the most significant shift towards being a seller’s market are Queenstown and Auckland with Nelson, Canterbury, Warrington and the West Coast not being too far behind. The regions of Northland and Wiararapa now have their lowest levels of listings since January 2007.