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Spring ‘bounce’ in property listings subdued, realestate.co.nz says
November 2nd, 2009The traditionally strong bounce in property listings was subdued in October, with new listings during the month down 6% from October 2008, property website realestate.co.nz said.
New listings on the site were up 7% from September while asking prices were steady and inventory levels rose as sales volumes remained subdued during the month, CEO Alistair Helm said.
“We are seeing a certain confidence in the market through people searching on the site and also people listing their property, but the seasonal uplift in listings has not happened as it did in years gone by,” Helm said.
Realestate.co.nz lists over 100,000 properties at any one time, representing over 90% of all listings currently marketed by real estate agents.
New listings jumped 19% in September from August, which was ahead of expectations, Helm said at the time. However, growth in October, which tends to be one of the largest months for new listings, was below growth in previous years.
“Figures from the report show listings are up only 7% to 13,550 compared to a 21% rise at the same time in 2008 and a 16% increase in 2007,” Helm said.
“Price expectation is steady at NZ$418,759 while inventory – the number of weeks it would take to sell the country’s entire available stock based on average sale times – rose slightly again in October as sales volumes remained subdued.”
“(T)he combination of little movement in price expectation, the number of listings, and inventory over recent months meant the market could be considered stable at present.”
Tags: Alistair Helm, House listings, House prices, house sales, realestate.co.nz
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November 2nd, 2009 at 10:29 am
And yet inventory levels are going up as asking price declines.
Sounds to me like the market has turned.
November 2nd, 2009 at 10:43 am
“Trees don’t grow to the sky”.
I’ve been watching The Ascent of Money (dvd) and heard that quote with regard the Mississippi Company and the worlds first stock bubble (but applicable to property as well). Great shot of the reality: a Louisiana swamp with alligator).
November 2nd, 2009 at 12:03 pm
asking price declines.. Am I dreamin.. not in Auckland. Auction rooms are chocked with bidders.
November 2nd, 2009 at 12:37 pm
Alot of my mates have given up on getting onto the property ladder for this cycle and happy to rent and save a better deposit rather than pay current prices on a creeping up interest rate
November 2nd, 2009 at 12:47 pm
Ginga- Auctions have no advertised “asking” price – so one would expect that those stats are not included in RE figures
November 2nd, 2009 at 12:56 pm
My interpreting is listing is increasing dramaticly(12% and 7% for last two month) and asking price is dropping off. So Bernard’s pridication is coming(30% or 15% price drop).
November 2nd, 2009 at 1:01 pm
Joe, you are reading wrong article
November 2nd, 2009 at 1:10 pm
Bernard-not bad mate,only a year out!Better than old Nostro!!!!!!!!!!!
November 2nd, 2009 at 1:21 pm
been looking to buy a house for the last 18 months – I am too about to give up. A one-way ticket across the ditch is looking so tempting
November 2nd, 2009 at 1:24 pm
The NZ Property report provides statistics for all listings coming onto the website of realestate.co.nz. The website has an active subscriber base of 94% of all licensed real estate agents.
Whilst some listings (auctions or tender listings) do not display a price on the website – we insist fro all offices that all listings must have a search range to power the site.
We take this range and apply a mid point average. We do exclude some listings from the data set for calculating the truncated mean asking prices – these would be listings where the range is judged to excessive.
So for the month of October there were 13,550 new residential listings added to the web site. To calculate the asking price we excluded 346 listings which fell outside the cut off criteria.
Alistair Helm
CEO Realestate.co.nz
November 2nd, 2009 at 1:35 pm
@GBM – I don’t blame you! I just got back from a holiday in Brisbane (used to live there a few years ago so have lots of friends there to visit) – things SEEM much rosier over there. I’m not saying everything’s perfect, but I did leave wondering why I permanently left in the first place (if that makes sense). The weather (compare 30 degrees to 15 degrees…..no comparison!), though groceries overall are a bit more expensive, fresh produce and meat are a lot cheaper. And did I mention the weather
November 2nd, 2009 at 1:38 pm
Speaking of Oz ; You’ve got to love a tryer !!!
“Sydney style queen Karin Upton Baker has been granted a temporary reprieve from eviction from her glamorous harbourside home. Some reports have her conspicuously opulent Billyard Ave home worth $28 million, but real estate experts think $10 million to be a more realistic price”
November 2nd, 2009 at 1:43 pm
gingerbreadman,
Strange that you saw auction rooms choked with bidders. Can you tell who are those bidders or just watchers? Are those bidders locals or foreigners?
Last few weeks, saw some open homes looked very quiet though. Maybe, Bernard’s prediction is becoming true. Potential buyers might come to understand some fundamentals, who knows, time will tell.
Sales up, prices up, net migration, low interest are just music to my ears. Cheers.
November 2nd, 2009 at 1:53 pm
Interest rates, when they go up next year, will rocket up. You will see perhaps 100 basis point jumps. So if people are struggling now to secure a mortgage for n overpriced, poorly designed and built NZ house with little or no inuslation (which many of them are), then the buyers will disappear when interest rates are up to 10%. People who buy now, and are thinking of selling in a few years time, will end up losing a of moeny.
November 2nd, 2009 at 2:29 pm
Most people over the past 3-4 months on interest.co.nz have or are predicting interest rates to spike up past 10% pretty fast over the coming fuel. I’m no economist
but as interest rates push up won’t inflation increase and isn’t house prices increase historically linked to periods of high inflation? Any websites or charts etc tracking historical inflation rates with interest rates and house prices please?
November 2nd, 2009 at 9:15 pm
I belive we had highest interst rates in the world between 2002-2007, and house prices more then doubled during same period.
November 3rd, 2009 at 10:36 pm
From a Robert Schiller item
He also predicted rising unemployment would not stop prices increasing. “Even in the Great Depression real home prices were rising with the unemployment rate above 12 percent … Just because we have high unemployment does not mean the stock market cannot boom and the housing market cannot boom.”
http://www.globaledge.co.uk/news/us-shiller-warns-prices-could-be-in-bu-36169