The April 2014 NZ Property Report published by Realestate.co.nz provides an insight into the state of the New Zealand property market as measured by the supply side of the property market over the month of April. A full print version of the NZ Property Report – April 2014 is published below and is available for download (800kb) and distribution.
Summary of the market – April 2014
Inventory recovers slightly as national asking prices ease
After seeing record high asking price reported last month, the national average asking price eased in April to $477,460 – down 1.4% from last month, but up 7% from the same time last year. Auckland bucked the national trend, and for a second month in a row posted a new record high asking price. Auckland asking prices have risen 12% in the last year, and reached $685,426 in April.
New national listings in April showed higher levels than historic years, with 10,245 new homes come on the market. This equates to 2% more than the number of new listings seen in April 2013. However the number of new listings was significantly less (down 18%) than we reported in March this year.
The inventory of unsold homes on the market recovered again in April, rising 3% from March to 29 weeks of stock, and was up 8% on the same time last year. This shows that there continues to be rebalancing in the market, and we expect to see this continue throughout May, which historically has seen healthy listings come on the market.
While inventory (based on weeks of equivalent sales) is beginning to ease, and see some rebalancing, we are still well below the long term average inventory of 37 weeks of stock.
Regional Summary – Asking price expectations
National asking prices eased in April to $477,460 (Seasonally Adjusted Truncated Mean), down 1.4% from last months record high, but remaining up 7% year on year.
Record high asking prices were seen again in Auckland, where the average asking price reached a new high of $685,426, up 12% on April 2013.
In total 10 regions saw asking price increases, with just 4 regions reporting an asking price increases greater than 5%. Hawkes Bay reported the largest increase, up 10% from March to $349,225. Followed by Marlborough which rose 8.4%, reporting an average asking price of $407,912
Of the 9 regions witnessing asking price falls there were 2 that reported falls greater than 5%, Gisborne saw the biggest fall, down 8% from March to $273,733. Followed by Coromandel, who witnessed a fall of 5.2% to an average asking price of $410,776.
Regional Summary – Listings
April saw a 2% higher level of new listings than the same time last year, with 10,245 new homes coming on the market.
Year on year new listings rose across most of the country in April with 10 of the 19 regions seeing a listing increase, and 1 region reporting the same number as last month.
Of the 8 regions that reported lower new listings than April last year the most significant fall was seen in Marlborough and Otago, falling 18% and 16% respectively.
There were 10 regions reporting year on year increase of listings with Northland and Coromandel reporting the biggest increase of new listings
In the main centers, Auckland, reported 3,329 new listings, down 4% from April 2013, Wellington was down 9%, with just 755 new listings last month. But Canterbury reported an increase with 1,211new listings, up 2.5% from last year.
Regional Summary – Inventory
The inventory of unsold homes on the market recovered again in April, rising 3% from March to 29 weeks of stock, and shows that the market is continuing to see re-balancing.
In total 17 of the 19 NZ regions are now sitting above the average inventory seen in the last 12 months. Nationally inventory (29 weeks) sits 12% above the 12 month moving average.
The rise in inventory during the last month was witnessed in 13 of the 19 NZ regions, but overall the market remains firmly a seller’s market, and inventory on the market remains well below the long-term average of 37 weeks of equivalent sales.
Market sentiment continues to favour sellers in 13 regions (marked in blue), with the greatest strain continuing to be felt in the 6 regions, which are marked in dark blue.
For Media Enquiries, please contact:
Paul McKenzie, National Marketing Manager, Realestate.co.nz | +64 21 618 537
Truncated mean The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures. The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.
Methodology With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 96% of all offices. With an average monthly level of over 11,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.
Seasonally adjustment The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data.
Background to Realestate.co.nz
Realestate.co.nz is the official website company of the real estate industry of New Zealand, it is an industry owned web business providing online marketing services to the real estate industry. The shareholders in the business comprise the REINZ (50%) and five of the largest real estate companies (50%). The business operates a portfolio of websites all focused to specialist sectors of the real estate market:
Realestate.co.nz is the heart of the business and is focused to the residential property market. The website attracts a significant monthly audience of over 700,000 unique browsers (Source: Nielsen Online Monthly UB, April 2014), with over 130,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 43% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 205,000 users making the app the most popular property app in NZ. (popularity based on App Annie report of total downloads of property apps in New Zealand)
nzFarms is a specialist website presenting the most comprehensive selection of farms and agricultural businesses on the market across NZ. At this time it features around 2,850 listings for all types of farms and agricultural land as well as over 10,000 lifestyle properties.
Prime Commercial is a specialist website presenting the most comprehensive selection of commercial property for purchase or lease on the market across NZ. At this time it features over 27,000 listings for all types of properties – retail, commercial, industrial and investment properties.
Prime Business is a specialist website presenting the most comprehensive selection of businesses for sale on the market across NZ. At this time it features over 3,200 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.
Realestate.co.nz Ltd is the official online property listing company of the New Zealand real estate industry, currently hosting over 100,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. With a subscriber base of over 1,000 offices, the company represents over 97% of all listings from licensed real estate agents in NZ. The full NZ Property Report for April 2014 can be downloaded here (800kb pdf document). Additionally the raw data is accessible here as an Excel spreadsheet enabling anyone to analyse the raw data and establish any trends or observations. Usage rights are governed under attribution to the source of the data being Realestate.co.nz. The next NZ Property Report for May 2014 will be published on this website on 3rd Jun 2014 at 11am.
By Paul McKenzie, Marketing Manager, Realestate.co.nz
If you have any comments or enquiries about the NZ Property Market or about marketing your property online, please contact me via Email, Google, or Twitter