Housing market remains overstocked heading into winter - asking prices flat

Property / news

House buyers still have the upper hand with stock for sale at an 11 year high

3rd Jun 25, 9:33am by Greg Ninness

The housing market appears likely to remain overstocked over winter which is likely to continue keeping a lid on prices.

The latest listing figures from Realestate.co.nz show that there were 34,415 residential properties available for sale on the website at the end of May, up 5.6% compared to the same time last year.

That is the most stock that's been available for sale on the website in the month of May in 11 years.

New listings also continue to rise, with 9489 new residential listings received by the website in May this year, up 2.9% compared to May last year and up by 11.4% compared to April this year.

The increase in new listings compared to April was almost entirely due to a spike in new listings in Auckland, which jumped from 2779 in April to 3654 in May, up 31.5% for the month and up 9.5% compared to May last year.

New listings around the rest of the country in May were more or less flat.

Asking prices were also flat, with the national average (non-seasonally adjusted) asking price on the website rising marginally from $851,746 in April this year to $852,288 in May, up just $542 (0.06%) for the month.

Around the main centres, average asking prices declined in May compared to April in Auckland (-$12.705), Waikato (-$15,548), Bay of Plenty (-$60,602) and Canterbury (-$9490), but increased in the Wellington Region ($24,520) and Otago ($21,337).

Overall, the latest figures suggest little change in the market as it heads into winter, with stock levels remaining high and asking prices remaining mostly flat.

"We still aren't seeing a buyers' rush," Realestate.co.nz Chief Executive Sarah Wood said.

"During May, the number of properties that remained on our site for less than 30 days actually decreased compared to April.

"Buyers still have the time and choice to do their due diligence, make informed decisions and purchase the property that's right for them," she said.

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31 Comments

by Yvil | 3rd Jun 25, 9:44am 1748900658

Let me save Gecko some time:

The housing market is like a giant elephant turd going down the effluent drain, it will CRASH by 724%, do NOT offer anything but prices from 1865, do NOT buy until prices are under -10 times rent.

by Retired-Poppy | 3rd Jun 25, 10:14am 1748902449

Yikes, someone is suffering an irritating itch....

by NZGecko | 3rd Jun 25, 12:55pm 1748912138

The incessant Spruikulvest rash first showed up in 2022......now its an all over, red raw, body rash, with nasty banking side effects and no tasty, rentier blood sucking capital gains to bank any longer.

It also turns people into sour as, lemons. Other side effects, are no more renter funded overseas holidays and forever assets grabbing. A moments silence please, for the "life downgraded" Landlord.

Anyway, with rental prices now in dropping mode, capital gains evaporating (like a drying out, desert pond) the poor destitute renters now have a mild reprieve from the slaver owning landlord class.

by kraken | 3rd Jun 25, 10:50am 1748904637

Guess I'm on team spruik now that my lowball offer got accepted. Paid 5% more than what was paid 10 years ago. But unlike yvil, I don’t care if it drops back to 2012 prices. Bought it for the land and location, the house was basically free. Not planning to move, this is the forever home.

by Yvil | 3rd Jun 25, 12:47pm 1748911626

"unlike yvil, I don’t care if it drops back to 2012 prices"

How do you know that I mind if prices drop to 2012 levels? Actually, that would be wonderful, we could all buy cheap houses, myself included!

by kraken | 3rd Jun 25, 1:29pm 1748914186

Then we’re the same, one home, a pile of gold. The only difference? You think interest rates are headed down long term, I think they’re going up.

by Yvil | 3rd Jun 25, 2:26pm 1748917599

Indeed, I believe that short term interest rates in NZ will go down more. We shall see ...

by nigelh | 3rd Jun 25, 3:52pm 1748922738

I prefer sideways.

by Yvil | 3rd Jun 25, 5:47pm 1748929634

True, too much down will get some owners in trouble and affect the wider economy with it.

by IT GUY | 3rd Jun 25, 7:40pm 1748936444

how would lower interest rates get me in trouble as an owner?

bring it on if I made a smart investment....

by kraken | 3rd Jun 25, 11:20am 1748906439

I honestly don't know what hope there is for young people. This is the third time I've bought property. Prices need to drop back to 2012 for many people to afford. The problem is inflated land prices. I bought for the land and location, but it's still very overpriced.

by Pa1nter | 3rd Jun 25, 11:24am 1748906667

The problem is inflated land prices

It's way more than that. Even if the dirt was free, you can't recreate a house for 2012 pricing. We make housing extremely unaffordable, across the board.

by NZGecko | 3rd Jun 25, 11:29am 1748906959

Build it yourself mate!

Whack on some shipping containers, join them like the human centipede, plasma cut some doors and windows, viola!

by Pa1nter | 3rd Jun 25, 12:41pm 1748911287

Apart from the fact this is actually a lot harder than it would seem (you can build a dwelling at less cost and hassle than chopping up containers), the council might have something to say.

by NZGecko | 3rd Jun 25, 12:54pm 1748912075

Talk to the council?......that's the first mistake.

by Pa1nter | 3rd Jun 25, 1:15pm 1748913332

Is this container village in an urban area?

Although if what you're saying is valid, sounds like you've resolved housing affordability. Acquire section, live in container. Cheap!

by interesting1234 | 4th Jun 25, 8:08am 1748981336

I know of someone building a tiny home form a 40ft ex-refrigerator container and it is looking amazing. Already insulated being an ex-refrigerated one, lined the inside with homegrown, milled, dried, cedar which is stunning. Cut in some windows, add water tanks, solar, lighting, it is cozy as and has a great view on top of a hill. Anything's possible if you put in the time, forethought, and have built a network to help you in your endeavours.

by Let me be Frank | 3rd Jun 25, 2:35pm 1748918132

No need for containers

https://www.building.govt.nz/projects-and-consents/planning-a-successfu…

by NZGecko | 3rd Jun 25, 5:26pm 1748928398

Yippppeeee, this "build your own is indeed the old Kiwi way. Some of us are very good with this, although the quality does vary.

This with the granny flats and 30sqm sheds, housing on Nz will be swamped for supply!!

A veritable Noah's flood of housing options! Every Landlords worst nightmare !!!!!

by Let me be Frank | 3rd Jun 25, 5:58pm 1748930303

Subject to the same inspection regime and code.... the main problem is with inexperienced inspectors...the old school ex builders doing TA work are diminishing by the day.

by Averageman | 3rd Jun 25, 3:03pm 1748919786

Greed still dominating price - aka no sales. Meanwhile agents and associated ticket clippers limiting advo on toast to once a month. Big question is... When will the banks really start to clear the defaulters?

by NZGecko | 3rd Jun 25, 10:07am 1748902033

Nice try YvilNZHousingsBiggestSruikuvester:)

- Love it.

But seriously now, this Epic, Once in a 50 year, NZ Housing Market Crash, seems to have no end. Well maybe it bottoms in 2027 or 2028?|

It's a NeverEndingStory!

The carnage in the cites is now becoming extreme, with many buyers over the last 5 years, in dangerous Negative Equity.

NE is a terrible place to be and FHBs should certainly only offer the old time 2015 prices and back some!!

by Averageman | 3rd Jun 25, 11:02am 1748905362

Down down down in ponzi town.

by EpsomArtsandCrafts | 3rd Jun 25, 3:43pm 1748922190

Thanks Greg, appreciate the facts and correct interpretation

a Contrast to another media source that quotes a boom in Wellington (assuming asking prices are important - not - and that comparing a random month to what was 'asked' a year earlier is actually relevant data - not

https://www.stuff.co.nz/home-property/360709714/wellington-average-prop…

by interesting1234 | 3rd Jun 25, 8:50pm 1748940650

Another anecdote: while catching up with many at a recent gathering in Wellington, at least 6 of the ~50 attendees, all late 20’s-mid 30’s, were leaving the country within the following week, and another 5-10 are planning to in the next 6 months. Reason? A range of: Housing not worth it, better opportunities abroad, high cost of living, most other friends have left, heading back home overseas (UK,AUS), poor job market.

When people get to key stages such as having children or purchasing a home, NZ clearly isn’t appealing, and the more people hear from others who have made the move, the easier it is for them to follow.

by IT GUY | 4th Jun 25, 7:01am 1748977260

This month's survey has shown the following main things.

Fewer people are attending open homes and auctions, and more agents report that overall house prices are falling.
A strong buyer’s market is in play however buyers are holding back amidst continuing worries about employment.
The positive impact on the housing market of falling interest rates appears to have run its course for now.

by Averageman | 4th Jun 25, 9:34am 1748986474

Wait till the banks start clearing the overly in debt.

by Averageman | 4th Jun 25, 7:02am 1748977371

Well the Govt job and consultant market was overly inflated by the last Govt. Throw in the specu yoyo of housing there from cheap covid debt who can blame them.

by interesting1234 | 4th Jun 25, 9:17am 1748985455

Indeed, but add in the resistance to change of human behaviour. People got comfy and used to easy job-hopping, large pay rises and were able to negotiate very favourable contracts due to worker scarcity. They thought this would go on forever (just as never ending growth and house prices), and they are having a hard time with everything being flipped on it's lid. Employers are not negotiating much at all currently with high worker availability, jobs are scarce and naturally people are looking for better options.

by MikeM7382 | 4th Jun 25, 8:53am 1748983998

It's still going to boom everyone. Any minute now...

by NZGecko | 4th Jun 25, 9:05am 1748984705

Great Tui billboard.

- Yvillerspruik would be glued to it.......believing every word:)