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Property Report – March 2014

blue pen and small houseThe March 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 March. A full print version of the NZ Property Report – March 2014 is published below and is available for download (800kb) and distribution.

 

Summary of the market – March 2014

Residential asking prices reach new national high

CoverPage_Report_Jan14

Average asking prices of newly listed residential properties across New Zealand rose to a new record high in March driven by renewed seller confidence in the major centres.

The record high (seasonally adjusted) average asking price of $484,263 was driven up by new record asking prices in Auckland, Wellington, and Waikato.

Average Auckland asking prices have risen 12% in the last year, reaching $683,169 in March, Wellington asking prices rose 7% Year on Year to $469,487, and Waikato rose 10% Year on Year to $393,169,

New national listings in March showed lower levels than historic years, with 12,488 new homes come on the market. This equates to 2% less than the number of new listings seen in March 2013. However Auckland, Wellington, and Christchurch all saw a healthy increase in new listings, providing more selection in the biggest NZ region.

The inventory of unsold homes on the market recovered slightly in March, rising 8% from February to 28 weeks of stock, and shows that the market is beginning to see re-balancing. Due to the rise in listings Auckland began to see a recovery in inventory, rising 19% from 13 weeks to 15 weeks of stock.

Regional Summary – Asking price expectations

Regional map of asking price NZ Property Report Feb 2013

Following the record asking prices seen last month, national asking prices again reached new records in March of $484,263 (Seasonally Adjusted Truncated Mean)

Record high asking prices were seen in 3 regions in New Zealand; Auckland, where the average asking price reached a new high of $683,169 (up 12% on March 2013); Wellington, where asking prices reached $469,487 (up 7% on March 2013); and Waikato where asking prices reached $393,169 (up 10% on March 2013).

In total 8 regions saw asking price increases, with just 1 region reporting an asking price increases greater than 5%. Gisborne reported the largest increase, up 6% from February to $297,255.

Of the 11 regions witnessing asking price falls there were 5 that reported falls greater than 5%, Wairarapa saw the biggest fall, down 13% from February to $285,829. Followed by West Coast, who witnessed a fall of 12.4% to an average asking price of $280,427.

Regional Summary – Listings

Regional map of new listings NZ Property Report Feb 2014

March saw a lower level of new listings than expected, with 12,488 new homes coming on the market. This was down 2% from March last year to the lowest level of listings seen for March since 2009.

New listings fell across most of the country in March with just 5 of the 19 regions seeing a listing increase on a year on year basis.

Of the 14 regions that reported lower new listings than February last year the most significant fall was seen in Coromandel and Nelson, falling 29% and 25% respectively.

There were 5 regions reporting year on year increase of listings with Wellington reporting the biggest increase of listings (up 11% from March 2013).

In the other main centers, Auckland, reported 4,389 new listings, up 5% from March 2013 and Canterbury reported 1,473 new listings, up 3.7% from last year.

Regional Summary – Inventory

Regional map of inventory NZ Property Report Feb 14

The inventory of unsold homes on the market recovered slightly in March, rising 8% from February to 28 weeks of stock, and shows that the market is beginning to see re-balancing.

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 12 regions (marked in blue), with the greatest strain continuing to be felt in the 6 regions, which are marked in dark blue.

Due to a healthy rise in listings, Auckland began to see a recovery in inventory, rising 19% from 13 weeks to 15 weeks of stock.

The level of unsold houses on the market at the end of March (42,152) was up slightly, when compared to February (41,731).

 

For Media Enquiries, please contact:

Paul McKenzie, National Marketing Manager, Realestate.co.nz | +64 21 618 537

Notes:

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 97% of all offices. With an average monthly level of over 10,000 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 760,000 unique browsers (Source: Nielsen Online Monthly UB, March 2014), with over 130,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 42% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 200,000 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 3,000 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 25,000 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 3,500 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

Realestate.co.nz 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 March 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 March 2014 will be published on this website on 2nd May 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 EmailGoogle, or Twitter

 

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Property Report – January 2014

Posted on: February 3rd, 2014 | Filed in Featured, Market News, NZ Property Report, Real Estate Industry News, Regional News

blue pen and small houseThe January 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 January. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – January 2014 is published below and is available for download (800kb) and distribution.

Summary of the market – January 2014

Growth of new listings seen, as buyer interest surges to record heights

CoverPage_Report_Jan14

The new calendar year starts with a healthy flow of new listings, which will help to meet the rising demand for property that historically is seen in the coming two months of February, and March. In total January had 9,267 new properties come on the market, up 5% from the same time last year. This increase in new listings was apparent across most of New Zealand, with 13 of our 19 regions seeing an increase in listings from January last year.

Early indications of higher buyer demand are already being seen by Realestate.co.nz, website traffic in January hit record levels, with over 1.6 million visits to the Realestate.co.nz sites (Source – Google Analytics). It will be interesting to see how this increase in site traffic translates into sales in the coming months.

Asking prices of new listings rebounded in January, with the national (seasonally adjusted) mean reaching $476,797, just short of the record asking price seen in October last year of $482,063. Record high asking prices were seen in Canterbury ($449,149 – up 11.5% Year on Year) and Otago ($304,720 – up 1.6% year on year).

Asking Price

SA_AskingPrice_Jan14

The seasonally adjusted truncated mean asking price for listings recovered from the fall seen in December, up  5.6% to $476,797 (from December), and represents a 8% growth on January 2013.

The trend seen in the chart opposite, continues to show strenght in seller expectation, on the back of healthy listings, and a strong demand for homes across New Zealand.

Regional Summary – Asking price expectations

Regional map of asking price NZ Property Report Jan 2013

National asking prices recovered in January to $476,797 (Seasonally Adjusted Truncated Mean) from the fall seen in December, nearing record asking prices recorded in October 2013.

Record high asking prices were seen in 2 regions in New Zealand; Canterbury, where the average asking price reached a new high of $449,149 (up 11.5% on January 2013); and Otago, where asking prices reached $304,720 (up 1.6% on January 2013).

In the other main centers, both Auckland and Wellington reported an increase in average asking prices from last month, Auckland rose by 1% to $663,372, and Wellington rose 4.2% to $463,912. Both sit close to the record asking prices set in their respective regions in October 2013.

In total 8 regions saw asking price increases, with 3 regions reporting asking price increases greater than 5%. Coromandel reported the largest increase, up 28.7% from December to $493,934, followed by Waikato, which rose by 9% to $381,413.

Of the 11 regions witnessing asking price falls there were 4 that reported a falls greater than 5%, the most significant falls were recorded in Central Otago / Lakes, Wairarapa, Taranaki, and Hawkes Bay. Central Otago / Lakes fell by 9.2% to $619,516, Wairarapa fell 7.2% to $265,828, Taranaki fell 5.7% to 325,241, and Hawkes Bay fell 5.5% to $331,032.

Regional Summary – Listings

Regional map of new listings NZ Property Report Jan 2014

New listings rose across most of the country in January, with 13 of the 19 regions seeing an increase in listings on a year-on-year basis.

Of the 13 regions that reported higher new listings than January last year the most significant increase in listings was seen in Coromandel, rising 39.8%, Central North Island, which rose by 29%, and Waikato, where listings were up 25% year on year.

Record low numbers of new listings were seen in Gisborne – which had just 52 new homes listed in January.

There were 6 regions reporting year on year decreases with Gisborne reporting the biggest decrease of listings (down 34.2%).

In the main centers, Auckland, Wellington, and Canterbury saw an increase in new listings. Auckland reported 2,723 new listings, up 1.2% from January 2013, Wellington reported 836 new listings, up 5% from last year, and Canterbury, saw a 8% rise in listings, with 1,082 new listings coming on the market.

Regional Summary – Inventory

Regional map of inventory NZ Property Report Dec_2013

The level of unsold houses on the market at the end of January (40,219) was up, when compared to December (38,804). The inventory as measured in terms of equivalent weeks of sales rose in January to 26.8 weeks, recovering to levels not seen since April last year

While this increase in the last month was seen in 13 of the 19 NZ regions, 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.

 

For Media Enquiries, please contact:

Paul McKenzie, National Marketing Manager, Realestate.co.nz | +64 21 618 537

Notes:

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 97% of all offices. With an average monthly level of over 10,000 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 615,000 unique browsers (Source: Google Analytics), with over 130,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 30% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 190,000 users making the app the most popular property app in NZ.

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 3,000 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 25,000 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 3,500 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

Realestate.co.nz is the official online property listing website 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 January 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 February 2014 will be published on this website on 1st March 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 EmailGoogle, or Twitter

 

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Property Report – November 2013

Posted on: December 3rd, 2013 | Filed in Featured, Market News, NZ Property Report

blue pen and small houseThe November 2013 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 November. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – November 2013 is published below and is available for download (2.1mb) and distribution.

Summary of the market – November 2013

Inventory levels recover slightly, as national asking price remains close to record high

CoverPage_Report_Oct13Across the country the level of inventory of property on the market eased slightly in November to 24.8 weeks, but remains low when measured against the historical average. The next 2 months of summer will see a seasonal drop in listings, so while New Zealand inventory levels lifted in November, this lift may be short lived.

The number of new listings coming to the market in November was down 5% on the same time last year. The figure of 13,311 follows strong listing numbers in October. This decrease in new listings was particularly apparent in Auckland, where the number of new listings is not keeping up with demand, falling by 7.3% from October.

Asking prices eased slightly in November, to $478,931 (down just 0.6% from the record high figure seen in October, but still up 7% year on year). In the main centres, Auckland, Wellington and Canterbury asking witnessed a slight fall in November to $659,300 (Auckland), $457,701 (Wellington), and $436,823 (Canterbury). All three regions sit close to their respective asking price peaks.

Asking Price

SA_AskingPrice_Oct13The seasonally adjusted truncated mean asking price for listings remained high, rising 7% to $463,142 (from November 2012), and down just 0.6% from the record high set in October.

The trend as seen in the chart opposite, continues to show strength in seller price expectation, on the back of low listings, and strong demand in the main centres

New Listings

TotalNewListings_Nov13The level of new listings coming onto the market in November fell slightly to 13,311 from 13,978 in October. This represents a fall of 5%, and is also down 2% when compared to November last year.

On a 12 month moving average basis a total of 132,291 new listings have come onto the market since December 2012 as compared to 132,493 in the prior 12 month period, a fall of just 0.2%.

Inventory

InventorySA_MMA_Oct13The level of unsold homes on the market at the end of November (40,366) remained well down as compared to November last year (45,228), a drop of 11%.

The inventory as measured in terms of equivalent weeks of sales was slightly higher than last month, with 24.8 weeks of stock now available.

The market remains firmly a seller’s market; with 16 of the 19 regions showing inventory levels that are well below long term averages.

Regional Summary – Asking price expectations

Regional map of asking price NZ Property Report Oct_2013The national (seasonally adjusted) truncated mean asking price expectation among sellers fell by 0.6% in November to an asking price of $478,931.

Record high asking prices were also seen 1 region in New Zealand; Waikato, where the average asking price reached $389,886 (up 8% on November 2012).

In total 11 regions saw asking price increases, with 6 regions reporting asking price increases greater than 5%. West Coast reported the largest increase, up 12.8% from October to $289,609, followed by Gisborne which rose by 10% to $303,959, and Taranaki, which rose 9.7% to $328,250.

Of the 8 regions witnessing asking price falls there were 2 that reported a falls greater than 5%, Coromandel fell by 13% to $440,210, and Hawkes Bay fell 8% to $345,375.

Regional Summary – Listings

Regional map of new listings NZ Property Report Oct_2013New listings fell across most of the country in November with just 7 of the 19 regions seeing an increase on a year-on-year basis.

Of the 7 regions that reported lower new listings than November last year the most significant drop in listings was seen in Central North Island, falling 23.7%, and Southland, which fell by 19.6%

There were 12 regions reporting year on year increases with Northland reporting the biggest increase of listings (up 30%), followed by Nelson, where a 9% increase was recorded.

In the main centers, Auckland, and Wellington saw a fall in new listings. Auckland reported 4,432 new listings, down 4% from November 2012, and Wellington reported 1,110 new listings, down 4% from last year. Canterbury, saw a 6% rise in listings, with 1,566 new listings coming on the market.

Regional Summary – Inventory

Regional map of inventory NZ Property Report Oct_2013The inventory of unsold homes on the market recovered slightly in November to 25 weeks of equivalent sales.

Market sentiment continues remains firmly in favour of sellers in 16 regions, with the greatest strain being felt in the 12 regions that are marked in darker blue. This includes the main metro areas of Auckland, Wellington, and Canterbury, which remain under pressure from low listings as measured against sales activity.

Three regions (Central North Island, and Taranaki, and Southland) showed an increase in inventory of homes on the market, taking them above their respective long-term average.

For Media Enquiries, please contact:

Paul McKenzie, National Marketing Manager, Realestate.co.nz | +64 21 618 537

Or Phillip Dunn, Acting CEO, Realestate.co.nz | +64 21 807 640

Notes:

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 97% of all offices. With an average monthly level of over 10,000 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. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 590,000 unique browsers, with over 130,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 30% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 185,000 users making the app the most popular property app in NZ.

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 3,000 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 25,000 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 3,500 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 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 November 2013 can be downloaded here (2.1mb 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 November 2013 will be published on this website on 7th January 2013 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 EmailGoogle, or Twitter

 

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Lessons from Real Estate Connect

Posted on: August 16th, 2013 | Filed in International, Market News, Technology

REAL LESSONS FROM REAL ESTATE CONNECT AND PROPERTY PORTAL WATCH WORKSHOP 

Screen-Shot-2013-05-08-at-9.09.10-AMTime just sails away when you’re having fun – especially when you’re in the City of Sails!

It’s been almost two weeks since I got back from the Inman Real Estate Connect conference in San Francisco; timed to coincide was also the Property Portal Watch Workshop, which looked at specific issues facing property portals, like realestate.co.nz (as opposed to the wider topics covered during Connect).

Hearing what the big industry players around the world are doing is always inspiring. The challenge for us Kiwis is how we take what might work in a huge market, like the US, and apply it locally. Realestate.co.nz is not alone in this; successful New Zealand based businesses know that it’s not enough to try to squeeze a square plug into a round hole. What we’re really good at doing is working out what (and how) works internationally and then shaping those ideas to fit our unique market.

property-portal-watch-logoOver the next little while I’ll be consolidating those key ideas, trends and the specific learning I took away from my time in San Francisco. I’ll expand on what Realestate.co.nz does and will continue to do to make your property buying, selling and renting experience easier (and cooler) as our lives become not only busier, but also digitally easier. In the meantime, I’ve managed to narrow it down the 6 core topics I got the most out of. I look forward to exploring these more with you over the coming weeks.

1)    Content for the small screen and responsive site design. What are the crucial bits of information we need to convey to those browsing on their smart phone? How do real estate agents and property portals monetise premium mobile content?

2)    Content syndication for overseas markets.

3)    Social media. Yep, it’s part of everyday life now. We’re an e-commerce site, yes, but how can we use the platforms you use to nail a great and useful relationship?

4)    TV apps – taking the previously small screen to the big screen. Is a realestate.co.nz TV app on the cards?

5)    User customisable floor planner tools. Imagine if you could check out what the property you’re considering buying would look like if only you could move that wall…?

6)    What else can we do to make your property search or selling experience easier? Push notifications might be one way; standing outside an open home and you receive an information pop up on your phone letting you know what the local schools are like, for example. What next?

phillip.dunnI’m also going to wrap up what the big players are currently doing in this space and how their data insights can help to inform where NZ property portals head. Think Trulia, Realtor.com, Zillow, etc.

My head is still buzzing from my time away. I feel really lucky to have been able to connect with some inspiring people, and am now looking forward to planning and sharing the exciting stuff we have ahead! As I put together my presentations and future blog posts about these areas (and more) I’d love to know if you have any burning questions or thoughts you’d like me to cover off. Please comment below or get in contact with us.

On a side note – today marks seven years since the Realestate.co.nz site launched, please join us in celebrating our 7th Birthday.

Phillip Dunn, Acting CEO, Realestate.co.nz

Connect with me via twitter: @phillipnz

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NZ Property Report – July 2013

Posted on: August 1st, 2013 | Filed in Featured, Market News, NZ Property Report, Regional News

The July 2013 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 July. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – July 2013 is published below and is available for download (1.2MB) and distribution.

Summary of the market – July 2013

National asking price reaches a new record high

Property Report Cover Page_JulyThe winter months have not reduced demand for homes in New Zealand, and because of this seller confidence has pushed up the (seasonally adjusted) truncated mean asking price to a new high of $465,191. The rise in asking price was noticeable across more than half of New Zealand, with 13 regions reporting a rise in asking price.

Record high asking prices were also seen in Auckland, Canterbury, and West Coast regions; 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 West Coast’s new highs were set at $422,043 and $318,816 respectively.

Across the country the level of inventory of property on the market eased in July to 26.7 weeks, but remains low when measured against the historical average. The next 3 months heading out of winter and into spring will see a seasonal lift in activity of both listings and sales. The key issue will be to what extent the rise in new listings can ease the pressure that the major centers are seeing.

Asking Price

SA_AskingPrice_Jul13The seasonally adjusted truncated mean asking price for listings rose 8.4% (from July 2012) and reached a new record high of $465,191. This new record asking price was up from the prior peak of $454,795 reached in May 2013.

The trend as seen in the chart opposite, continues to show strength in seller price expectation, on the back of low listings, and strong demand in the main centres

New Listings

TotalNewListings_Jul13

New listings in July recovered from the lows reported in June, with 9,857 new listings coming to the market. Up 9% when compared to June, and up 5% on last year.

On a 12 month moving average basis a total of 131,343 new listings have come onto the market since August 2012 as compared to 130,878 in the prior 12 month period, a rise of just 0.4%.

Inventory

InventorySA_MMA_Jul13The number of new listings helped to ease inventory pressure (as measured in weeks of equivalent sales), which 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.

The level of unsold houses on the market at the end of July (36,231) was down 4%, when compared to June (37,615).

The market remains firmly a seller’s market; with 14 of the 19 regions showing inventory levels that are well below long term averages.

Regional Summary – Asking price expectations

Regional map of asking price NZ Property Report Jul 2013The national asking price expectation among sellers rose by 3.3% in July, to a new national record high asking price of $465,191. (seasonally adjusted truncated mean). This was more than $10,000 higher than the previous record of $454,795 set in May this year.

In the main centres, both Auckland and Canterbury posted record highs of $639,685, and $422,043 respectively in July. In total 13 regions reported asking price increases, with 5 regions reporting a rise of greater than 5% from June. The most significant rise was seen in the Marlborough, up 8.2% to $267,350. Of the 6 regions witnessing asking price falls on a seasonally adjusted basis there was just 1 that reported a fall greater than 5%, Coromandel showed the largest fall, down 6.4% to $406,446.

Regional Summary – Listings

LRegional map of new listings NZ Property Report Jul 2013istings started to flow back into the market last month.

There were 14 of the 19 regions that reported  a increase of new listings on the prior year, with 1 region reporting a rise of over 20%.

The most significant rise in listings was seen in Central North Island, which rose by 77.4%, a level not seen in Central North Island since November 2011.

Of the 5 regions that reported lower new listings than July last year Gisborne was the region to report the highest fall -28% when compared to July 2012, followed by Manawatu / Wanganui which saw an fall of 18.7%.

In the main centers (Auckland, Wellington, and Christchurch) the pressure eased slightly, with all three regions reporting close of 5% increases on July 2012

Regional Summary – Inventory

Regional map of inventory NZ Property Report Jul 2013The inventory of unsold homes on the market eased slightly in July to 27 weeks of equivalent sales.

Central Otago / Lakes hit record low inventory levels in July; falling to 55 weeks, 41% below its long term average

Market sentiment remains in favour of sellers in 15 regions, with the greatest strain being felt in the 8 regions that are marked in darker blue. This continues to include the main metro areas of Auckland, and Canterbury, although there was some easing, they continue to remain under pressure from low listings.

Four regions (Southland, West Coast, Wairarapa, and Manawatu / Wanganui) showed an increase in inventory of homes on the market, taking them above their respective long-term average. In addition 1 other region (Taranaki) sits close to its long term average.

Lifestyle

LifestyleListings_Jul13New lifestyle property listings fell across the country in July. A total of just 620 listings came onto the market, showing a fall of 9% when compared to June, and a fall of 12% when compared to July last year. Canterbury saw record low numbers of new lifestyle listings for a 2nd month, with just 58 coming to the market. The national truncated mean asking price of $698,868 set a new record high asking price, up by 3.6% as compared to the recent 3-month average (and up 9% when compared to July 2012). Record high asking prices were also reported in Auckland, Nelson, Otago, and Central Otago / Lakes regions.

Apartments

ApartmentListing_Jul13New listings for apartments in July were up 16.7% on a year on year basis, and up 18% from June, with 531 being brought to the market. The truncated mean asking price of new apartment listings rose 3.2% to $386,393 in July from $374,374 in June, and was up 8.3% on a year on year basis.

The Auckland apartment market had 373 new listings, up 16% when compared to July last year. The truncated mean asking price of new listings in Auckland rose to $388,891, up from $354,882 in June. When compared to the recent 3-month average, this represents an increase of 6.8%.

For Media Enquiries, please contact: Paul McKenzie, Marketing Manager, Realestate.co.nz | +64 21 618 537

Notes:

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 97% of all offices. With an average monthly level of over 10,000 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. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 500,000 unique browsers, with over 120,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 30% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 165,000 users making the app the most popular property app in NZ.

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 3,000 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 25,000 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 3,500 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 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 July 2013 can be downloaded here (1.2MB 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 August 2013 will be published on this website on 1st September 2013 at 10am.

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 EmailGoogle, or Twitter

0

Real estate, revolution and robots

Posted on: July 9th, 2013 | Filed in International, Market News, social media, Technology, The lighter side

Realestate.co.nz’s Acting CEO, Phillip Dunn, is currently in San Francisco to attend Real Estate Connect.

The way we live has undergone massive transformation in recent years. I love using technology and digital tools to help with the simple stuff such as scheduling appointments and staying in touch with friends, to the previously impossible – such as using insights gained from the website to compile our monthly property report.

With how we live changing so much, it makes sense that the way we buy, sell, find and research property is also continuously evolving. The game of real estate is not static. As a web-based company, we’re acutely aware of the need to stay up-to-date with not only our core business, but also with how you want to connect with us, talk to us and what you’ll want to know down the track. Luckily, the future excites us.

San Francisco’s Real Estate Connect Event is the ideal opportunity to learn about, the “trends that will shape our world and business: robotics, crowdfunding, big data, and machine learning”. I, for one, am looking forward to learning more about the connection between robotics and real estate! I intend to connect with like-minded industry colleagues and bring key insights back to realestate.co.nz.

The conference will run from 9 – 11 July. If you’re interested in following the conversation, you can use #ICSF  to stay up-to-date on Twitter. I’ll be posting from my own account  and on behalf of realestate.co.nz.  Follow me now to get the inside view right from day one!

I look forward to keeping you updated during the conference.

Cheers, 

Phillip Dunn

1

NZ Property Report – December 2012

Posted on: January 4th, 2013 | Filed in Featured, Market News, NZ Property Report

The December 2012 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 December. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – December 2012 is published below and is available for download (1.2MB) and distribution.

Summary of the market – December 2012

New Year starts with even fewer properties for sale, but an ease in asking prices.

The property market saw a further tightening of supply in December, more especially in the 3 major cities where the market remains very firmly as a sellers market. In overall terms the number of new listings coming onto the market in December was considerably lower than expected given the surge in November. Overall stocks of unsold homes fell to a 5 year low of 26.6 weeks of inventory (long term average = 39 weeks).

Auckland, Waikato and Otago were most affected by low inventory levels, with stocks of unsold homes falling to a new record lows of 13.9 weeks of inventory in Auckland, 31.5 weeks in Waikato, and 20.4 weeks in Otago, each well below their long term inventory levels.

Inventory levels across the country remain low and the market remains a firms sellers market across 16 of NZ’s 19 regions.

 

Asking Price

The seasonally adjusted truncated mean asking price for listings in December eased from the record high of $446,277 set in November to a December level of $422,636. The month-on-month decrease of 5% takes the month level to 1% up on December last year.

As can be seen from the chart that the fall in the month does not significantly affect the trend line which continues to show a steady rise over the past 2 years.

 

New Listings

The level of new listings coming onto the market in December fell on a seasonally adjusted basis by 8.4%. A total of 8,482 new listings came onto the market representing a 3% year-on-year fall.

For the calendar year of 2012 a total of 132,243 new listings came onto the market as compared to 124,748 for calendar year 2011 – a rise of 6%. By comparison the prior years stats were 2007: 177,529; 2008: 163,488; 2009: 135,416; 2010: 138, 789. So as compared to the peak of the market on 2007 listings are down 26%.

 

Inventory

The level of unsold houses on the market at the end of December (42,513) was down, when compared to November (45,228). The inventory as measured in terms of equivalent weeks of sales fell to a 5 year low last month to 26.6 weeks last month. This fall was witnessed across 16 of the 19 regions.

With the rising rate of property sales, the inventory on the market has seen a significant drop over 2012 pushing it well below the long-term average of 39 weeks of equivalent sales.

 

Regional Summary – Asking price expectations

The national (seasonally adjusted) truncated mean asking price expectation among sellers fell by 5.3% in December to $422,636.

In the main centers, Auckland, and Christchurch reported a fall in the asking price in December. Auckland fell 1.5% to $588,088, and Canterbury fell 4.1% to $389,273. Wellington reported a rise in asking price of 0.8% to $434,843.

In total 5 regions reported asking price increases, and 3 regions saw rises greater than 5%. The most significant rises were seen in Gisborne, Wairarapa , and Hawkes Bay with Gisborne showing the largest increase, up 33.9% to $335,905. Of the 13 regions witnessing asking price falls on a seasonally adjusted basis there were 6 that reported a falls of greater than 5% with Northland falling by 14.4% to $366,584, Central Lakes / Otago falling by 12.8% to $515,859, Central North Is falling by 9.9% to $332,649, Marlborough falling 8.7% to $362,071, West Coast fell 7.2% to $277,538 and Taranaki fell 6.3% to $281,856.

A new record high asking price was seen in Southland, rising by 3.6% to $264,028.

 

Regional Summary – Listings

Overall new listings decreased on a national basis, as seen in the adjacent chart and across the regions there were slightly more regions showing increases than falls.

There were 11 regions reporting year-on-year falls, with significant falls (over 20%) seen in just 1 region, West Coast – falling by 35.1% when compared to December 2011.

Record low numbers of new listings were seen in West Coast, Auckland, and Wellington, putting more pressure on the already low number of listings in the main centers

8 regions reported higher new listings than December last year with Southland being the region to report the highest increase of 72.5% when compared to December 2011, Followed by Northland who saw a increase of 42.9%, and Coromandel who saw a increase of 35.8%.

Regional Summary – Inventory

The inventory of unsold homes on the market tightened significantly in December – Falling to a new record low of 26.6 weeks of equivalent sales from 29 weeks (on a seasonally adjusted basis).

Three regions (West Coast, Southland, and Central North Island) showed increases in inventory of homes on the market taking them above their respective long-term average. In addition one other region (Taranaki) sits close to it’s respective long term average.

Market sentiment now favours sellers in 14 regions, with the greatest strain being felt in the 10 regions which are marked in darker blue, which includes the main metro areas of Auckland, Wellington, and Canterbury which remain under pressure from low listings as measured against sales activity.

Auckland, Otago, and Waikato all reported record low numbers on Inventory (based on weeks of equivalent sales), with Auckland reporting an all time low of 14 weeks of equivalent sales.

 

Lifestyle

New lifestyle property listings fell across the country in December, dropping 23.7% when compared to November. A total of 813 listings came onto the market, showing a fall of 3.8% when compared to December last year. The truncated mean asking price for these listings was down by 4.8% as compared to the recent 3-month average to an asking price of $624,860 (up 13.6% when compared to December 2011). New record high asking prices were seen in 1 region in New Zealand (Hawkes Bay $765,375).

 

Apartments

New listings for apartments in December were down 6.1% on a year on year basis, with 325 being brought to the market. The truncated mean asking price of new apartment listings fell 3.9% to $378,750 in December from $394,282 in November, and was down 4.5% on a year on year basis.

The Auckland apartment market had 163 new listings coming onto the market, down 17% when compared to December last year. The truncated mean asking price of new listings in Auckland fell to $352,786 (December) from $386,818 (November) representing a 5.7% fall on the prior 3 months.

 

For Media Enquiries, please contact: Paul McKenzie, Realestate.co.nz | +64 21 618 537

Notes:

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 10,000 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. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 475,000 unique browsers, with over 115,000 of those visiting from countries outside of NZ.

In addition Realestate.co.nz receives over 25% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 122,000 users making the app the most popular property app in NZ.

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 5,000 listings for all types of farms and agricultural land as well as over 11,000 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 4,300 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 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 December 2012 can be downloaded here (1.2MB 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 January 2013 will be published on this website on Friday 1st February 2013 at 11am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

2

NZ Property Report – November 2012

The November 2012 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 November. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – November 2012 is published below and is available for download (1.2MB) and distribution.

Summary of the market – November 2012

Inventory hits 5 year low and adds growing pressure to the property market

The message coming from the property market is that buyers are out and about and are keen to get into the market. This eagerness to buy is matched by the availability of attractive mortgage packages, but is not being met with sufficient supply of new property listings, which is continuing to drive the current sellers market.

Inventory levels across the country remain low and the market remains a firms sellers market across 15 of NZ’s 19 regions. Overall stocks of unsold homes fell to a 5 year low of 28.7 weeks of inventory (long term average = 39 weeks). Auckland was again the most affected by low inventory levels, with stocks of unsold homes falling to a new low of 15.5 weeks of inventory, well below the long term average of 31 weeks.

The REINZ Residential Market Statistics reports strong property sales with 6,640 properties sold in October, up 33% on a year ago, and yet listing flow is not matching with just a 1.5% year on year growth. This is why the inventory supply of the property on the market (as measured by rate of sale) has fallen 29% in the past year.

This confidence on the part of sellers is certainly supported by the rate of sale of property which is being shared by real estate agents in their daily contact with the public, and can also be seen in traffic to Realestate.co.nz which has seen an increase this year of 40%, with over 1,400,000 monthly visitor sessions across all sites (Google Analytics).

 

Asking Price

The seasonally adjusted truncated mean asking price for listings steadied, rising just 0.2% to high of $446,277 in November.

The trend (as seen in the chart opposite) very clearly shows an accelerating growth in asking price over the recent 12 months (as compared to 2010/11) and shows continued strength in seller expectations.

 

New Listings

The level of new listings coming onto the market in November continued to increase, with 13,571 listings in the month – up from 12,688 in October (7% increase). However listings were only slightly up by 1.5% on November last year.

On a 12 month moving total basis the number of new listings that have come onto the market in the last year totals 132,493, as compared to 124,940 in the prior 12-month period, this represents a rise of 6%.

 

Inventory

The level of unsold houses on the market at the end of November (45,228) was up, when compared to October (43,410). The inventory as measured in terms of equivalent weeks of sales fell to a 5 year low last month to 28.7 weeks last month. This fall was witnessed across 15 of the 19 regions.

With the rising rate of property sales, the inventory on the market has seen a significant drop over the last 12 months pushing it well below the long-term average of 39 weeks of equivalent sales.

 

Regional Summary – Asking price expectations

The national (seasonally adjusted) truncated mean asking price expectation among sellers rose just 0.2% in November to a new high of $446,277.

In the main centers, Auckland, Wellington, and Christchurch all reported a fall in the asking price in November. Auckland fell 2.5% to $596,759, Wellington fell 4.2% to $431,259 and Canterbury fell 2% to $405,913.

In total 10 regions reported asking price increases, and 5 regions saw rises greater than 5%. The most significant rises were seen in the Central North Island, Northland, Manawatu/Wanganui and Southland with Central North Island showing the largest increases, up 6.9% to $369,390. Of the 9 regions witnessing asking price falls on a seasonally adjusted basis there was 3 that reported a falls of greater than 5% with Gisborne falling by 14.4% to $250,866, Hawkes Bay falling by 10.3% to $321,454 and Wairarapa falling 7.3% to $254,194

 

Regional Summary – Listings

Overall new listings increased on a national basis, as seen in the adjacent chart however across the regions there were slightly more regions showing increases than falls.

There were 11 regions reporting year-on-year rises, with significant increases (over 20%) seen in just 2 regions, the largest increases were in Gisborne (25%), and Otago (20%).

7 regions reported lower new listings than November last year with the Central North Island being the region to report the highest fall off of 35.8% when compared to November 2011, Followed by Northland who saw a fall of 21%

 

Regional Summary – Inventory

The inventory of unsold homes on the market tightened significantly in March – Falling to a new low of 28.7 weeks off equivalent sales from 33 weeks (on a seasonally adjusted basis).

Four regions (Southland, West Coast, Coromandel, and Wairarapa) showed increases in inventory of homes on the market taking them above their respective long-term average. In addition one other region (Manawatu / Wanganui) sits close to it’s respective long term average.

Market sentiment now favours sellers in 14 regions, with the greatest strain being felt in the 8 regions which are marked in dark blue, which includes the main metro areas of Auckland, Wellington, and Canterbury which remain under pressure from low listings as measured against sales activity.

 

Lifestyle

New lifestyle property listings fell across the country in November, dropping 4.9% when compared to October. A total of 1,066 listings came onto the market, showing a fall of 5.9% when compared to November last year. The truncated mean asking price for these listings was down by 1.5% as compared to the recent 3-month average to an asking price of $654,519 (up 13.9% when compared to October 2011). New record high asking prices were seen in 2 regions in New Zealand (Waikato – $675,581, and Central Otago/Lakes – $1,596,071).

 

Apartments

New listings for apartments in November down 9.5% on a year on year basis, with 484 being brought to the market. The truncated mean asking price of new apartment listings fell 1% to $394,282 in November from $398,121 in October, but was still up 6.4% on a year on year basis.

The Auckland apartment market had 304 new listings coming onto the market, down 13.1% when compared to November last year. The truncated mean asking price of new listings in Auckland rose again to $386,818 (November) from $382,303 (October) representing a 2.2% increase on the prior 3 months.

 

For Media Enquiries, please contact: Paul McKenzie, Realestate.co.nz | +64 21 618 537

Notes:

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 10,000 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. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 475,000 unique browsers, with over 115,000 of those visiting from countries outside of NZ.

In addition Realestate.co.nz receives over 25% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 122,000 users making the app the most popular property app in NZ.

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 5,000 listings for all types of farms and agricultural land as well as over 11,000 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 4,300 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 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 November 2012 can be downloaded here (1.2MB 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 December 2012 will be published on this website on Wednesday 2nd January 2013 at 11am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

2

NZ Property Report – October 2012

The October 2012 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 October. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – October 2012 is published below and is available for download (1.5MB) and distribution.

Summary of the market – October 2012

The property market continues to show signs of confidence and heightened activity as compared to the past few years. The confidence amongst sellers bringing their properties onto the market has pushed up the (seasonally adjusted) truncated mean asking price to a new high of $445,529 – the highest level since the collection of data began in 2007. This rise in asking price was noticeable right across the country, with Auckland reaching a new record high of $611,864, and Canterbury reaching a new high of $414,070.

November saw a good rise in new listings (up 12% on October 2011), and this rise has lead to some balancing of the property market in both Wellington and a number of provincial regions.

While inventory levels across the country balanced in October, the market remains a firm sellers market across 12 of NZ’s 19 regions. Overall stocks of unsold houses rose slightly to 33 weeks of inventory (long term average = 40 weeks). Both Auckland and Canterbury remain firmly sellers markets, with overall inventory levels continuing to remain well below long-term averages.

The next data for November will be interesting to review as to the final flush of new listings coming onto the market in Spring – November is traditionally one of the biggest listings months of the year. Last year that total was just over 13,000 – that at a time when inventory was considerably higher than today.

 

Asking Price

The seasonally adjusted truncated mean asking price for listings rose 4% (from September) to an all time high of $445,529 in October. This new record asking price level was up from the prior peak of $435,887 reached in May this year.

The trend as seen in the chart opposite continues to show strength in seller expectation and strong demand in the main centers.

 

New Listings

The level of new listings coming onto the market in October continued to increase, with 12,688 listings in the month – up from 11,514 in September (14% increase). October also saw big increases on last year, with an increase of 12% in listings.

On a 12 month moving total basis the number of new listings that have come onto the market in the last year totals 132,291, as compared to 124,503 in the prior 12 month period, this represents a rise of 6.3%.

 

Inventory

The level of unsold houses on the market at the end of October (43,921) remained stable, when compared to September (44,063) as measured on a seasonally adjusted basis. The inventory as measured in terms of equivalent weeks of sales rose last month to 33.1 weeks last month. This rise was witnessed across 17 of the 19 regions. But overall inventory levels still fell well below the long-term average of 39 weeks.

 

Regional Summary – Asking price expectations

The national (seasonally adjusted) truncated mean asking price expectation among sellers rose 3.8% in October to a new peak of $445,529. This exceeds the prior peak of $435,887 reached in May this year.

Following the new record high for the national asking price figure, both Auckland and Canterbury also posted record highs in October. This is the first time that the seasonally adjusted mean asking price has topped the $600,000 mark in Auckland ($611,864), and the $400,000 mark in Canterbury ($414,070).

In total 15 regions reported asking price increases, and 7 regions saw rises greater than 5%. The most significant rises were seen in the Central Otago/Lakes, Canterbury, Gisborne, Manawatu/Wanganui, Southland, and Auckland regions, with Central Otago/Lakes showing the largest increases, up 18% to $621,200 (the highest seen since November 2007). Of the 4 regions witnessing asking price falls on a seasonally adjusted basis there was just 1 reporting a fall greater than 5% with West Coast seeing a fall of 6.5%.

 

Regional Summary – Listings

Overall new listings increased on a national basis, as seen in the adjacent chart however across the regions there were slightly more regions showing increases than falls.

There were 16 regions reporting year-on-year rises, with significant increases (over 20%) seen in 10 regions. The largest increases were in Taranaki (68%), Wairarapa (40%), Hawkes Bay (34%) and Gisborne (31%)

Only 3 regions reported lower new listings than October last year with Northland being the region to report the highest fall off of 17.4% when compared to October 2011.

 

 

Regional Summary – Inventory

The inventory of unsold homes on the market eased in October, rising 9% from September to 33 weeks of stock, and shows the market re-balancing.

This re-balancing is however not occurring in the two major markets of Canterbury and Auckland where the inventory continues to remain low.

Five regions (Taranaki and West Coast) showed increases in inventory of homes on the market taking them above their respective long-term average. In addition four other regions (Central North Island, Southland, and Otago) sit close to their respective long term averages indicating a more balanced market.

Market sentiment continues to favour sellers in the remaining 10 regions, with the greatest strain being felt in the 3 regions which are marked in dark blue, which includes the main metro areas of Auckland, and Canterbury, which remain under pressure from low listings as measured against sales activity.

 

Lifestyle

New lifestyle property listings had another boost across the country in October, rising a further 18% when compared to September. A total of 1,121 listings came onto the market, showing an increase of 12% when compared to October last year. The truncated mean asking price for these listings was up by 7% as compared to the recent 3-month average to a record high asking price of $689,375 (up 13% when compared to October 2011). This record high was reflected across 4 regions in New Zealand (Northland, West Coast, Canterbury, and Central North Island).

 

Apartments

New listings for apartments in October were up 1.5% when compared to September, with 484 being brought to the market (on a year-on-year basis listings were up 9%). The truncated mean asking price of new apartment listings fell slightly to $398,121 in October from $399,489 in September, but was still up 8% on the recent 3-month average.

The Auckland apartment market followed the national trend with 300 new listings coming onto the market, up 7.1% when compared to October last year. The truncated mean asking price of new listings in Auckland rose again to $382,303 (October) from $366,057 (September) representing a 9.8% increase on the prior 3 months.

 

For Media Enquiries, please contact: Paul McKenzie, Realestate.co.nz | +64 21 618 537

Notes:

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 10,000 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. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 450,000 unique browsers, with over 115,000 of those visiting from countries outside of NZ.

In addition Realestate.co.nz receives over 25% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 117,000 users making the app the most popular property app in NZ.

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 5,000 listings for all types of farms and agricultural land as well as over 11,000 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 4,300 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 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 October 2012 can be downloaded here (1.5MB 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 November 2012 will be published on this website on Monday 3rd December 2012 at 9am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

2

NZ Property market outlook continues to brighten

Posted on: August 13th, 2012 | Filed in Buying / Selling a home, Featured, Market News

The latest data released last week by the Real Estate Institute for the month of July shows that the property market is reasonably active. That is the best description “active” rather any inference of a boom – Helen O’Sullivan the CEO rightly stated that “the current market should be seen as recovering rather than ‘booming’”.

The fact is that sales of properties across NZ in July were up 20% as compared to the same month last year with 5,907 unconditional sales booked in the month by licensed real estate agents. The first 7 months of 2012 has seen 42,464 sales as compared to 34,511 for the same 7 months of 2011, an increase of 23%. The chart below tracks the annual trend of sales growth or decline over the past 5 years. Having had 15 months of yer-on-year increases we are at that stage of seeing increases on increases on a year-on-year basis which really shows a strong trend.

The most important perspective to appreciate when examining the scale of property sales as a measure of the overall market is the historical backdrop. The chart below tracks the NZ property market from 1993 to date, measuring on the red line the 12 month moving total of property sales using the right hand axis. The blue line shows the total value of transacted sales tracked on a 12 month basis with the left hand axis scale.

 

The key take-away from this chart is just how low the property market fell between 2007 and 2009 – 105,00 down to 55,000. The current 12 month average is tracking at 69,000 with an expectation of 72,000 by the end of the year. This total now marginally surpasses the “dead-cat bounce” mini-peak of January 2010. In terms of the value of transactions this is now running at an annualised rate of $30.64 billion up 40% from the lowest point in February 2009 at $21.91 billion.

The other perspective on property sales is to reference sales to the existing stock of houses in NZ. The key factor here is just how slow new house builds have been over recent years, having said that the current estimated stock at 1.56 million is up 14% since 2000 the equivalent of an extra 189,000 homes. The chart below tracks the percentage of houses sales on an annualised basis against the stock of houses.

 

I think this chart more than any other ably demonstrates that the NZ Property market is in nothing like in a boom – the current rate of sale equates to 4.5% of all dwellings per year far below the long term average transaction level of 6%.  The market is staging a recovery as the general population regain a sense of confidence in the general economy and are clearly being influenced with what are very attractive interest rates. However we would need to see another year of 20% growth on top of this year’s 20% growth before we would be anything like approaching the long term average level of sales.

 

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