The number of residential properties available for sale on Realestate.co.nz reached a 12-year high for the time of year in July.
The property website had 33,252 residential properties available for sale at the end of July, up 9.3% compared to July last year.
That stock increase occurred even though the 7698 new listings in July was virtually unchanged (-0.5%) from the 7737 it received in July last year.
Total stock for sale on the website has steadily declined from its summer peak of 37,638 at the end of March to 33,252 at the end of July, (-11.%) although it's normal for stock levels to decline over winter.
However, the total amount of stock available for sale at the end of last month was the highest it has been for the month of July since 2014, putting it at a 12-year high for the time of year.
July's high stock level is particularly significant because the number of properties for sale usually starts to increase around August in anticipation of the spring/summer season when the market is more active.
If the market follows its usual trend, that spring uplift will be starting from already elevated stock levels this year.
The high number of properties for sale, combined with rising mortgage interest rates and a sluggish economy, has created a buyer's market and kept a lid on prices over autumn/winter, so these latest figures suggest that situation could continue into spring.
Reflecting higher stock levels, prices have been in decline this year, with the average asking price on Realestate.co.nz declining for five consecutive months, from $898,677 in February to $828,345 in July, a drop of $70,322 (-7.8%) over that period.
This suggests vendors will need to have realistic price expectations based on current market conditions in order to achieve a sale.
"Buyers have more choice than they did a year ago, yet they are still willing to act when a property is priced for today's market," Realestate.co.nz General Manager Customers Vanessa Williams said.
"The vendors getting the best results are the ones who have a well-marketed property that's priced to the current market conditions, rather than holding out for 2021 prices," she said.
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