Spring has arrived early in the New Zealand real estate market, as new listings came online in early August, but thanks to high levels of sales the inventory is still low, according to data just released in the NZ Property Report, a monthly report compiled by Real estate.co.nz.
The report found the number of new listings in August rose 9% on a seasonally adjusted basis, but inventory fell for the fifth month in a row, or 37 weeks in a row, due to continued high buyer demand. The CEO of Realestate.co.nz, Alistair Helm, says the market is generally in favor of sellers, and 12 out of the 19 regions in the country now have below average inventory levels.
He said “It’s a much more buoyant market we’re seeing at the moment. The rate of sale is the highest it has been 18 months. Interest rates are attractive so buyer confidence is healthy. This has led to more sellers entering the market, but demand is continuing to outstrip supply.”
This buyer demand has led to Auckland recording its lowest level inventory in four years, while other areas including Canterbury, Wellington, Manawatu and Coromandel have moved towards becoming a sellers’ market for the first time in more than one and a half years.
According to Mr Helm, this increase in new listings has also been accompanied by a slight increase in asking prices, up 3% from the previous month to an average of $415,078. This shows that although the market is moving in favour of sellers, they are not becoming overconfident about the value of their property.
Helm went on to say “While the end of winter is traditionally the signal for sellers to list their property, the levels we are seeing now should certainly be seen as a further green light for sellers who are considering entering the market.”
Realestate.co.nz is the country’s most comprehensive property listing website, and it has over 110,000 real estate listings including residential, commercial and farm property for sale.