Property prices rising slower this year
The strong rise in property asking prices has slowed down markedly in recent months. Over the last year, the national asking price for properties increased by only 3.9%, compared to an 8.7% increase in the preceding year.
At the same time, the available inventory of homes for sale remains well below the long-term average. The number of homes for sale in New Zealand has been below the long-term average since January 2012. This is especially apparent in Auckland, where the inventory sits at 15 weeks of available stock, well below the long-term average inventory of 27 weeks. This means that if no new listings appear and sales continue at the current rates, it would take only 15 weeks for all available Auckland homes on the market to be sold.
Usually at this time of year, the number of new listings increases strongly every month. While the usual spring trend is evident again, the increases are not as dramatic as in previous years. “The number of new listings in August was lower than the norm, and it’s the same again in September, with 10,408 homes coming onto the market. However, new listings often peak in October and November, and we still expect a marked increase in the supply of homes for sale over the coming months,” says McKenzie.
Even though asking prices for properties are no longer rising at the same high rate as before, the prices are still growing and remain at a high level. Nationally, the average asking price of $484,791 is still close to the record of $490,550 set in June this year.
The average asking price in Waikato is virtually identical to the record of nearly $395,000 set in July, while the price in Auckland is once again above $700,000, exceeding that monthly mark for only the third time. Unlike the rest of the country, the average asking price is still rising strongly in Auckland, where home-owners now expect to sell their properties for 10% more than a year ago.
Despite the high prices and relatively low number of homes on the market, buyer interest remains strong. Last month, Realestate.co.nz had 75% more* unique daily visitors in September compared to a year ago
Realestate.co.nz is in the best position to track the available inventory and asking price variations, as Realestate.co.nz has over 20% more homes for sale on our database than their closest New Zealand competitors. This includes 96% of all homes listed through real estate agents in the country
* Based on Nielsen Average Daily UB comparison Sept 2013 – Sept 2014
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