Inventory of homes for sale falls while asking prices remain high
House sellers benefit further as inventory of homes for sale falls while asking prices remain high
The average asking price of houses for sale in December remained at high levels across the country, while inventory of available homes for sale declined reaching record low levels in Auckland. Overall, the latest monthly data from Realestate.co.nz indicates that the NZ property market continues to favour sellers, and increasingly so.
While the national average asking price in December of $480,815 was slightly down on November, a fall of 3.4%, it was still 7% up on the same time a year ago. Meanwhile in Auckland, the average asking price of $731,083 was only marginally below the all time record of $731,588 set in November. The December average asking prices in Wellington and Canterbury were $462,511 and $450,919 respectively.
The more dramatic indice in December was the shrinking inventory of homes for sale across the country, which fell to its lowest level since November 2013.
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. The long-term national average is 36 weeks, however in December inventory fell to just 24.5 weeks of stock, with 15 of 19 regions experiencing falls in available property levels.
Auckland drove the fall in inventory, registering an all time low of 10.8 weeks of stock in December, a 21% fall on November, and a 13% drop on the same month in 2013. Bay of Plenty also saw a new record low of 31 weeks.
The CEO of Realestate.co.nz Brendon Skipper says “the shortage in the number of homes for sale, especially in the three main centres, underlines the favorable environment house sellers enjoy as they seek to maximise the value of their homes on the property market. In total we now have just 37,537 homes for sale in New Zealand, which is the lowest since September 2013.”
As per the seasonal trend, December was a quiet month for new listings with just 8,283 new homes coming on the market across the country, 39% down on November though slightly up, by 3.4%, on the same month in 2013.
The total of number of homes that were listed for sale in 2014 was 128,049, which was 2.8% down on 2013.
“The number of new listings tends to remain low through January, however we do expect to see a significant lift of homes coming on to the market in February and March this year, which will help to ease the current low levels of inventory that we are experiencing,” says Mr Skipper.
For Media Enquiries, please contact:
Brendon Skipper, CEO, Realestate.co.nz | +64 21 542 607
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 97% 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.