With the level of property sales already down 44% at just 25,500 properties in the first 5 months of the year – and stock of property on the market at record levels, it comes as no surprise that the level of rental properties on the market is also growing.
In fact over the past 3 months as the levels of new properties coming onto the market has begun to decline and the overall stock of properties has also begun to decline, so the level of stock of rental properties has risen. The graph below shows the statistics of properties listings on realestate.co.nz through the first half of 2008.
The blue shaded area represents the stock of rental properties – growing sharply from a steady 4,000 in the first 3 months to then spike up to the current level of over 6,000 this month. At the same time the red columns representing properties for sale as measured on the left hand axis shows the decline from April, down from 61,700 to just under 60,000 this month – not a massive decline, but a decline all the same.
As a note it is important to note that rental properties on this website tend to reflect a high turnover as the timeline of renting is on average so much shorter than selling properties, however looking back over the past 24 months – no other period has seen such a fluctation in stock.
Additionally it is clear that it is difficult to directly correlate the circumstance of properties once marketed for sale being alternatively offered for rental, however the feedback from within the industry and other articles definitely point in this direction.
Ammended content 9th July
At the request of Lance – below is the same data presented for an 18 month period – clearly the stock of rental listings are growing at a rate far ahead of any seasonal influence.