The spring property season is underway with asking prices for new listings jumping NZ$10,000 - more than the usual winter/spring jump - in September from August to just below the peak set in April, the latest realestate.co.nz property report shows.
The Rugby World Cup and upcoming election do not appear to be affecting the supply side of the property market, as new listings in September were in line with the spring trend, realestate.co.nz CEO Alistair Helm said.
The truncated mean asking price for all new listings in September rose from NZ$415,078 in August to NZ$425,565 in September, the property report showed.
"On a seasonally adjusted basis the asking price rose by 1.5% in the month indicating that there is an emerging confidence amongst sellers of stronger prices. There is a seasonal trend that sees asking price rise in the early spring each year, this year that seasonal rise is somewhat more significant and could result in a new peak of asking price," Helm said.
The level of new listings coming onto the market in September rose again in line with seasonal trends, he said. A total of 11,117 new listings came onto the market representing a 5% year-on-year increase; on a seasonally adjusted basis the rise was a more modest 0.3%.
On a 12 month moving total basis the number of new listings in the past year totaled 124,102, compared to 142,778 for the same period a year ago – a fall of 12%.
The level of unsold houses on the market at the end of September rose slightly after falling from record highs in March and April.
"At the end of the month there were 46,299 houses, apartments and lifestyle properties on the market up from 44,689 in August and down from 51,035 a year ago. This current level of inventory represents 37.2 weeks of equivalent sales," Helm said.
See the release from realestate.co.nz:
AUCKLAND, 1 October, 2011 – The average asking price for New Zealand properties for sale jumped significantly in September, signalling that seller confidence is continuing to grow as the traditional Spring surge of new listings arrived on the market.
Data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – shows the average asking price rose to $425,565, up 2% on a seasonally adjusted basis, as 11,117 new listings came onto the market – a jump of 10% from the previous month.
Alistair Helm, CEO of Realestate.co.nz, says that the rise in asking price shows that sellers are clearly looking to capitalise on the higher demand for property.
“Sellers have seen the growing demand for new properties and responded accordingly. It’s likely that we may see asking prices rise further as sales remain strong and this confidence grows further in the months ahead.”
Mr Helm also says that the stock of unsold houses on the market has finally stabilised after dropping for five consecutive months, lifting slightly to 37 weeks up from 36 weeks in August.
“This is still well below the long term average of 41 weeks. If historical precedent is any indicator, this could likely continue to plateau for the foreseeable future,” says Mr Helm.
Realestate.co.nz is the country’s most comprehensive property listing website profiling listings of licensed real estate agents with more than 110,000 real estate listings covering residential, commercial, business and farms for sale.
The latest issue of the NZ Property Report, covering August 2011, plus more analysis of the property market can be found on www.unconditional.co.nz, the news and information website for New Zealand real estate.
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25 Comments
Average August transaction transaction price was $363k, accoring to the article. So at 5.5% variable interest-only and say $3000 p.a. other expenses for the year, that's $440 per week to 'own' it. Average rent? Still about $410 if I recall correctly ( but that may have be for Auckland. No matter: it's probably an overstated national rent figure). So bargain... is a relative word, I guess!
I can't get my head around whether it is better to buy or rent - staistics can't be skewed to prove any side of an argument. Paying out rent is dead money over time - so just as you believe that Average Rent is 'overstated' NA, I believe renting over owning is NEVER a good choice.
And this is one of the reasons New Zealand just got downgraded.
Not much has changed.
We're still a housing market with bits tacked on. The government hasn't done much to change it.
It actually helped fuel it with last year's tax cuts for those on higher incomes.
cheers
Bernard
"11,117 properties came onto the market" So: With an inventory level of 46,299 proprties, enough for 37.2 weeks sales, that a monthly sales figure of 5293 . With 11,000 coming to market...nearly twice as much stock is added to the "For Sale" column than taken off the "Sold"... That can't be good.....
It's not hard to spot the gameplan. Debase the savings. Encourage the property market.
Savings are going nowhere as the dollar is eaten away by inflation. People can see no safe place other than property. As long as you buy quality property in this situation, you stand a better chance of avoiding massive losses...and to leave it in a bank when the outlook is for bank failure and having funds frozen for years to come as happened with the psis...no thank you. Corporate bonds promise huge if not total loss. Gold and silver are not practicle options. An increasing demand for rentals is certain.
The cheaper for longer ocr game being taken, is the finger pointing to safety in good property. Saving is being discouraged.
But, Wolly. People, governments, companies are all...paying off debt.That's deflation of the money supply . Yes; 'the power that be ' will fight it. But austerity a reality. So with less cash in the system, as a result of debt discharge, that has to increase the value of what remains, versus ALL other assets. QE hasn't achieved much, except bought time, that is fast running out.' Good' property is only worth what a buyer can pay. And if there is less and less cash and debt in the system, prices have to fall; just like all other assets.
No NA they are not "all paying off debt"...corporates are selling bonds as fast as they can! English is borrowing all he can get. The credit market remains in growth even if at low rates.
So your argument falls over.
Yes cash means savers can get bargains and drive down property prices but that cash is being debased 30 to 40% per ten years.
QE1 and 2 ....bloody useless. Won't stop Bernanke repeating the idiocy. Ditto the BoE and ECB and BoJ.
Quality property may be a safer investment than cash in a bank..that is the perception now. Run of the mill stuff is likely to fall in value. The wealthy are moving to protect their savings with a move to the best property.
Bollard ought to have taken the route that encouraged savings and discouraged borrowing...he didn't. Rates should have gone up not down. The debt trap grew larger.
At best, the sale of corporate bonds appears to be a debt-swapping excersise.ie: they can't or won't get it from a bank, so they have to issue bonds. NZ debt issuance does go on, but that appears to me to be the same thing ie: a reallocation of where whatever investment is made, rather than the gross amount (NZ and not Greece; and the QE had to go somewhere after all!). As I noted, yes, the Governments of the World have a vested interest in pumping the system up: what other choice did they appear tohave? After all...it's worked before. If you believe that good property is the way to go, fill your boots. Me? As I've always maintained: 5 years deposit rates at 9% 3 years ago were a geat investment; 6.75% were a good investment 2 years ago, and even at 6% today they still are. Nothing will insulate any of us from where we are about to go. For me, it's about what will hurt least.
We still have a hang up about 'quality property'. In a market, all property has its own value. The only thing with 'quality property' is that sometimes real estate agents find it easier to sell, but the quality determines the sale price - so if it is better 'quality', then therefore it will sell for a 'better' price. If it is poorer quality, it will still sell - hopefully the owner bought the property for a lower price. Surely people can't believe that a quality property in a poor area will sell for more than a poor property in a quality area - remember, buy the worse property in the best street!
I think that I have to accept that the politicians are totally managing the property market through the supply of land and credit. Their mates in the building material supply industry are making a feast of it with those few people with enough cash to build. Supply is being kept at or slightly less than demand, it is far from the free and compedative market that these leaches espouse (only when it suits them)
Doc, congrats, nothing like living in your own home!
We left our own home in Auckland and currently living in a rental home in Brisbane.... have to ask permission for just about everything.. A real pain in the ... ( . )
Despite all the glooms and dooms about owning a property in this blog site, we can't wait to buy own home again..
Congrats.
I note that new ratings valuations were completed across most of the previous council areas (including North Shore and Auckland City) in July 2011, but the QV website says for Auckland City to "check [release] date with the Council".
Anyone heard when the new RVs are to be released?
Just found it after a quick search;
http://www.landlords.co.nz/read-article.php?article_id=4059
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