The February 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 February.
A full print version of the NZ Property Report – February 2014 is published below and is available for download (800kb) and distribution.
Summary of the market – February 2014
Sellers set a new record national asking price
Seller confidence has driven asking prices of new listings to record levels in February; with the national (seasonally adjusted) mean reaching a new high of 483,099. The rise in asking price was noticeable across more than half of New Zealand, with 11 regions reporting a rise in asking price.
Record high asking prices were also seen in Auckland $667,370 – up 12% Year on Year), Wairarapa ($329,396 – up 24% year on year) and West Coast ($320,245 – up 8% year on year)
Indications of higher buyer demand are already being seen by Realestate.co.nz, website traffic in February reached record levels, with over 1.7 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.
However the number of new listings may not keep up with the potential increase in buyer demand, as February saw just 12,167 new homes come on the market, 7% less than the number of new listings seen in February 2013.
Regional Summary – Asking price expectations
National asking prices reached a new record in February of $483,099 (Seasonally Adjusted Truncated Mean). The record high was driven up by new record asking prices in Auckland ($677,370), where asking prices have risen by 12% in the last 12 months.
Record high asking prices were also seen in 2 other regions in New Zealand; West Coast, where asking prices reached $320,245 (up 13% on February 2013); and Wairarapa where asking prices reached $329,396 (up 24% on February 2013).
In total 11 regions saw asking price increases, with 6 regions reporting asking price increases greater than 5%. Wairarapa reported the largest increase, up 24% from January to $$329,396, followed by Marlbourgh, which rose by 16% to $418,945.
Of the 8 regions witnessing asking price falls from January there was just 1 that reported a fall greater than 5%, Coromandel fell 15%% to $420,759.
Regional Summary – Listings
February followed seasonal trends, with 12,167 new homes come on the market, an increase of 31% from January.
However the number of homes for sale was lower than predicted and well down on prior years with 16 of the 19 regions seeing a fall in new listings on a year-on-year basis.
Of the 16 regions that reported lower new listings than February last year the most significant fall was seen in Coromandel and Otago, falling 29% and 26% respectively.
There were just 3 regions reporting year on year increase with West Coast reporting the biggest increase of listings (up 21%).
In the main centers, Auckland, and Wellington followed that national trend, Auckland reported 4,098 new listings, down 5% from February 2013, and Wellington reported 1,141 new listings, down 1% from last year.
Bucking the national trend, Canterbury saw a 3% rise in listings, with 1,399 new listings coming on the market.
Regional Summary – Inventory
The level of unsold houses on the market at the end of February (41,731) was up, when compared to January (40,219). The inventory as measured in terms of equivalent weeks of sales fell in February to 25.9 weeks.
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.
The fall in inventory during the last month was seen in 14 of the 19 NZ regions with record low levels of 44 weeks of stock seen in Central Otago / Lakes, well below the long term average of 91 weeks.
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 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 654,000 unique browsers (Source: Effective Measure), with over 130,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 40% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 198,000 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 February 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 April 2014 at 11am.
By Paul McKenzie, Marketing Manager, Realestate.co.nz