Wellington, New Zealand Is a Seller
04 August 2011
New listings in Wellington are continuing to fall, and this is leading to a seller's market even though the average asking prices have also dropped by 4.4% during the last three months to $413,000. The number of new listings coming onto the market in Wellington is now down by 18% compared to the same time last year, and the current inventory of houses represents just 21 weeks of sales. In three months this figure has come down from more than 26 weeks’ worth of inventory.
Nationally, the mean asking price in July was $403,000, which is almost $11,000 less than in May. The number of new listings also fell by 15% compared to July last year. Although winter is traditionally a slow time for the property market, a 15% decline is considerable, and has produced an impact in all regions of the country. Nationally the inventory of unsold houses fell to 38 weeks compared to a long-term average of 41 weeks. This is due to a combination of fewer new listings as well as an increase in sales activity.
In just two short months the property market in New Zealand has changed from being a buyer’s market to a seller's market in 15 out of the 19 regions as there is a shortage of new listings throughout the whole country. This trend has been happening for a while, and started off in Auckland before spreading out through all the major metropolitan areas and into provincial regions. Asking prices have increased in the Central North Ireland, and are up 2.7% to $344,000, and have increased by 2% in Taranaki to $299,000, and in Hawke's Bay by 1.5% to $325,000. The Central Otago Lakes region has seen a massive 7.4% increase to an average price of $582,000.