The usual surge in new home listings on the market in August is noticeably weaker this year compared to the past, with just 9,482 new listings. New residential property listings are 11.5% down on the same time last year. This fall affected most regions around the country, with only Northland, the Coromandel and Central North Island bucking the trend.
Every August, we start to see strong lifts in new home listings after the quieter winter months. The expected lift did come this year, but it’s not nearly as dramatic as in the past. For instance, we have seen an increase of 3.5% from July to August this year, compared to the same time last year, where we saw a significant lift of 8.7%. However, we still expect an upsurge before the end of the year, as new listings usually peak in October and November.
Asking prices have also eased compared to July, but remain at near record levels. Nationally, the average asking price is up 4.5% on the same time last year, with 12 of the 19 regions in New Zealand recording higher average asking prices than a year ago. In Auckland, for instance, the average asking price rose from $650,114 a year ago to $698,494 this August, after breaching the $700,000 mark in June and July. In Wellington, the average asking price in August 2014 was $457,145 (up from $445,531 the year before) and in Canterbury $449,995 (up from $422,043 the year before).
The prices properties fetch may be affected by a shortage of supply. The total inventory of homes available for sale at the end of August – only 36,694 – sits close to the record low levels seen in August last year.
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.
Methodology The realestate.co.nz data is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 96% of all offices. With an average monthly level of over 11,000 new listings, the realestate.co.nz data provides the largest monthly sample on the residential property market.
Seasonally adjustment The core data 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 Ltd is the official online property listing company of the New Zealand real estate industry, currently hosting over 100,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. The raw property report 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.
By Paul McKenzie, Marketing Manager, Realestate.co.nz