National average asking price in June hits new record of $537,682
AUCKLAND, 1 July 2015 – According to Realestate.co.nz, New Zealand’s largest property listing website, the highly competitive property market has sparked a surge in mobile app usage. Not only has the total number of Realestate.co.nz mobile app users grown at a much faster rate than other platforms in the last twelve months, but the average mobile app user visits the property portal significantly more often than they did the same time last year.
“While the number of buyers who use the website on any platform – desktop, mobile or tablet – has shown strong growth of 33% compared to the same time last year, mobile app users have increased by an even greater 44%,” reports Brendon Skipper, CEO of Realestate.co.nz.
“But more significantly, mobile app users now use the Realestate.co.nz app even more frequently than they did before. Today, the average smartphone user visits the app 16% more often than they did a year ago in June 2014.
“Clearly, serious home buyers have realised that there is a competitive advantage to be gained by inspecting online listings as frequently as possible, and the Realestate.co.nz mobile app provides a powerful platform to search for properties anytime, from anywhere.
“In addition, New Zealanders are clearly more comfortable and savvier in maximising the increasingly comprehensive toolset that comes with today’s smartphones and the applications that are available to them,” says Skipper.
June property data shows increase in national average asking price
While only eight of the nineteen national regions showed an increase in average asking price in June, these increases were so significant that the national average asking price rose by 0.9% to a new record of $537,682 in June. Three regions in particular saw a strong increase in the average asking price, with the Auckland market having the biggest impact nationally due to its size.
For the first time, the average asking price for Auckland homes rose above $800,000. The average asking price of $820,016 in June 2015 is 3.4% higher than the previous record of $793,260 recorded in May.
Sellers in Central Otago asked on average 9% more for their homes in June than in May, reaching an average asking price of $762,284. Gisborne asking prices experienced even higher relative growth of 10.3%, but from a lower base – the average asking price in Gisborne in June was $287,140.
Other regions that saw monthly increases in average asking price in June include: Manawatu/Wanganui (+4.8%), Taranaki (+4.5%), Otago (+2.1%), Canterbury (+1.8%) and Central North Island (+1.7%).
Major population centres such as Wellington and the Waikato saw a small decrease in the average asking price. In Wellington, it went down by 1% to $457,488, and in the Waikato by 0.5% to $385,325.
Property demand outstrips supply
A total of 8,748 new properties were listed nationwide in June this year, 2.6% more than the corresponding month in 2014. Of these, 3,138 were in Auckland. The only other region that saw more than a thousand new properties come onto the market was Canterbury, with 1,117. More than 500 new properties were listed for sale in each of Waikato, the Bay of Plenty and Wellington.
Despite these new properties coming onto the market, the national average in overall inventory of available housing stock for sale remains at an all-time low of only 20 weeks. Inventory is a measure of supply and demand that indicates how long it would take, in theory, for all the current properties on the market to be sold at the current average rate of sales. Based on these figures, only two of the 19 regions in the country are currently rated as buyers’ markets: Southland and West Coast.
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About Realestate.co.nz Realestate.co.nz is the official website of the New Zealand real estate industry, and provides the most c omprehensive selection of licensed real estate listings. Realestate.co.nz lists more than 120,000 properties each year, representing more than 97 per cent of all listings currently marketed by real estate professionals.
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