Average national asking price in April climbs to new national record of $521,729, while new listings and total inventory plummet
Auckland average asking price inches up to new high of $789,581
AUCKLAND, 1 May 2015 – The New Zealand property market in April continued the trend of the last four consecutive months with yet another increase in average asking price, creating a new record of $521,729, an increase of 1.4% on the previous month.
The latest monthly property data from Realestate.co.nz showed that Auckland, where the average asking price rose by 3% to a new high of $789,581, continued to be the main driver in the overall national increase – no other region experienced a new record in average asking price in April.
In fact, most parts of New Zealand experienced either little change or decreases in average asking price during the month. In Wellington the average asking price dropped slightly by 1.4% to $455,611, while Canterbury also experienced a small decrease of 0.8% to $463,175. The biggest drops occurred in Central Otago where the average asking price in April fell by 17.3% to $604,729, while the average in Southland fell by 11% to $232,549.
Significantly, the number of new listings was the lowest recorded for April by Realestate.co.nz, with only 9,673 coming on to the market, a fall of 5.6% on the same time last year, and a decrease of 18% from March. In addition, the national average in overall inventory* of available housing stock for sale fell to an all time low of only 21.3 weeks in April. The previous record low of 21.4 weeks was set in January, while the long-term national average is 36 weeks.
CEO of Realestate.co.nz, Brendon Skipper says, “The drop in listings coupled with the record low total inventory shows that sellers in many parts of New Zealand are experiencing very favourable conditions. As a result, robust average asking prices continue to be maintained at record levels, and the market appears to be meeting them.”
A full copy of this release is available here.
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.
Realestate.co.nz is the official website of the New Zealand real estate industry, and provides the most comprehensive 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.
* Inventory is expressed as a theoretical measure of the number of weeks it would take to sell all unsold housing stock on the market at a given point in time, which includes all active listings of homes for sale no matter when they were first listed.
For media enquiries, please contact:
Brendon Skipper, CEO
T: +64 21 542 607