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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