Average house sale asking price hits new peak of NZ$429,249 in April, boosted by Auckland market, realestate.co.nz says

Average house sale asking price hits new peak of NZ$429,249 in April, boosted by Auckland market, realestate.co.nz says

The average asking price for New Zealand houses rose to a new high in April, boosted by a strong Auckland housing market, the latest Realestate.co.nz Property Report says.

However, despite higher asking prices suggesting seller confidence was strong, the national property market still remained a buyers' market, Realestate.co.nz CEO Alistair Helm said.

The national average asking price hit NZ$429,249 in April, up 2% from March and above the previous peak in October 2007.

See the Realestate.co.nz release below:

The average asking price for New Zealand houses has risen to its highest level in four years, suggesting that seller confidence in the property market remains strong.

Data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – shows that in April asking prices nationally hit a new high of $429,249, just topping the previous market high point recorded in October 2007. 

The high average price was helped significantly by the Auckland region – which represents over a third of the New Zealand property market – where prices nudged near to the highest levels ever recorded, topping $550,000 for the third time in the last six months.

Alistair Helm, CEO of Realestate.co.nz, says that the high asking price – calculated on the truncated mean price for all homes for sale in New Zealand – suggests that while the national property market is still favouring buyers, the data shows that sellers are clearly feeling confident that prices are sustainable.

“There were 10,181 new listings brought to the market in April, which is down on last month, but for asking prices to remain at this level shows the market is active, but not desperate or excessively stressed.”

Mr Helm said that Auckland in particular is “humming”, where recent higher levels of sales and slower numbers of new listings over the past month have reduced the regional inventory, and moved the market to start to favour sellers. 

“The rest of the country is a little sleepy in comparison, with inventory hitting a national level of just under 54 weeks, but it would be safe to say that this will begin to drop from this point on,” he says.

“In fact, we could easily see Auckland move back towards a shortfall in new listings if trends continue. It certainly feels like a two-speed property market at this time, with Auckland actively out in front with the rest of New Zealand still some way behind in terms of levels of property activity.”

Mr Helm also said that new listings in the Canterbury region were holding up well, as the region continues its recovery efforts from the recent earthquakes.

“Another 1,126 new listings came onto the Canterbury market with asking prices lifting again, suggesting there’s no desperation to sell in the region yet.”

Realestate.co.nz is the country’s most comprehensive property listing website profiling listings of licensed real estate agents with more than 117,000 real estate listings covering residential, commercial, business and farms for sale.

The latest issue of the NZ Property Report, covering April 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.

And comments from the NZ Property Report:

The NZ Property market certainly is showing signs of renewed activity, far from the levels of the mid 2000’s the current activity is measured and very much centered on the Auckland region. Whilst in overall terms the level of inventory weighs heavy on all regions the levels of sales reported in March show that buyers are certainly back in the market and beginning to clear some of this high inventory.

By the nature of the way inventory is reported (actual stock divided by 3 month average sales) the very low levels of sales in January and February is in some way holding back the reporting of this trend of greater activity. It is likely that with the reporting of the April sales that the next inventory report for May will show a significant fall in inventory levels of unsold houses.

The market amongst sellers is certainly not showing any impact of inventory levels, as a function of such seller confidence the national truncated mean asking price has risen in April to a new record high of recorded stats going back to the start of 2007.

As a further lead indicator to the market, the levels of new listings continue to track well below prior year. In fact we have seen 10 consecutive months of falls in listings numbers year-on-year.

Asking Price

The truncated mean asking price for all new listings in April rose to establish a new peak at $429,249 up from $421,940 in March. On a seasonally adjusted basis the asking price rose 2% in the month indicating a continued confidence amongst sellers.

The trend of the past 2 years shows continued strength in asking price expectation.

New Listings

The level of new listings coming onto the market in April fell to 10,181 in April. This represented a 17% year on year decline and an 8% seasonally adjusted decline from March.

On a 12 month moving basis the number of new listings in the past year totals 129,678 as compared 142,635 for the same period a year ago – a fall of 9%.

Inventory

The level of unsold houses on the market at the end of April continued to fall from prior months. April reported 50,398 down from 51,980 in March and 52,672 in February.

This steady decline in the physical number of new listings is not being reflected in the representation of inventory as measured in rate of sales as the recent 3 month period (Jan – March 2011) contained two of the lowest sales months recorded. 

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54 Comments

This stuff is just stupid!

I mean , it's like asking how many different ways can you skin a cat?

So what if vendors are deciding to ask more for their homes even though the inventory levels of stock still languishes?

all that means is on the Greedy Index, vendors still think the housing boom boom baby is just around the corner and they're positioning for it...but then again there is the Rugby World Cup and we all know that no visitors will ever go home after purchasing their overpriced house in Mt Eden..eh, Christov !

So prices haven't gone up and they have to resort to publishing figures of asking prices going up. Big deal. 

Why don't they report the median of the low ball offers that the majority of purchasers are making to these overpriced idiot vendors?

Like roof repairing, we quote a very high price instead of a fair price to cover the cost of people don't go ahead, people asking for discount, people having another quotes.

Believe or not, mots of time, I will get the busibess.

Hang on to your hats ladies and gentlemen, let the "spruiking" begin !! .... if we read "between the lines" , in reality what is happening,  is that the country is stagnant,  except for the central part of Auckland, where its just "swapping" between existing owners.

Also PLEASE will you property spruikers use the MEDIAN,  as opposed to the MEAN or average.... this eliminates the "outliers" in the data set and gives a much clearer picture of the real figures...... as opposed to what you want Joe Public to hear.

Good morning Wolly !! and when are you going to get your "a" back in your name, which is quite rightfully yours.

Quite right, Crazy H. I mean ( or is that mode?) it's not as if the name hi-jacking 'Wally" has ever posted, is it! Give 'the man' back their name, Bernard.....

A ? ........... Whatever happened to actual house prices , of houses sold ........ Not the airy-fairy dream prices of the sellers , as reported , above . ....... bloody bunch of Wallys !

NZ has become Ga-Ga land .

I agree, Crazy Horse...he is rightfully.. the right Wally !!

Seller confidence might be strong but...it doesn't look like it's justified. At the end of the day, who cares about the asking price. It's the selling price that matters and it looks like there is a bit of a discrepancy there (60K!) http://www.stuff.co.nz/business/money/4948817/Owners-forced-to-cut-home-prices

Yeah I'm just going to go ahead and ask for $1,000,000 for my house and push the asking prices up, the asking prices mean nothing, people can ask for whatever they want, in this stagnant economic climate with a very low amount of prospects for our country in the future, you can expect to get a lot lower than what you're asking.

If the REINZ look at the stats hard and long enough they can always find a positive to report. 

Reporting asking price increase is just plain stupid though.

Amagine Briscoes advertising "We have put all our prices up this month so rush in to bag a bargain"

 

Exactly, its bordering on retarded, makes me angry because its just dickheads trying to pull the wool over people's eyes. Excuse my french Bernard.

Surely it would be Briscoes or M10 saying "our prices are going to rise, so get in now and bag a bargain"....people are stupid and agents will take advantage of that stupidity...even Bollard is taking advantage of it...an ocr cut expected to make people feel confident...only idiots and fools would feel confident given the RBNZ is slashing the cost of credit.......

But then we live in a nation where the average reading age is 12...many adults cannot read a comic let alone a newspaper full of BS...fools believe the drivel from the nodding head on the box.

http://www.stuff.co.nz/business/money/4948817/Owners-forced-to-cut-home-prices

Then you get the true story being reported by Stuff.co.nz

"Homeowners seeking unrealistically high prices for their properties are being forced to slash more than an average $60,000 off the sale price.

Sellers are asking more for their homes than at the peak of the 2007 real estate boom and the high prices are contributing to an oversupply.

This has created a buyers' market and flat prices outside Auckland, despite extremely low interest rates."

You have to ask the price much more then what you really want to get.

 

Dr Roof Ron

that's better...good to see the Dom.Post getting it right.

Actually, i'm surprised Alistair Helm from realestate.co.nz putting his name to releasing this rubbish press release..he's usually a lot more pragmatic and balanced in the stuff he posts....as david bowie sang " desperation makes losers of us all" i guess ?

 

How can asking prices still be rising?

Maybe you should all get 'more angry' then they might stop rising.

Try that.

Fail

Is dead cat always bounce?

BH can be on TV3 or radio to talk down the housing market and encourge young people to go overseas.

 

Dr Roof Ron

Congratulations NZ, you asked for higher house prices, and you got em.  Well done.

But why stop at unaffordable housing?   Lets make food, transport and energy unaffordable too !!

Join with me everyone, and demand an end to cheap living expenses and rising incomes.  Come on NZ, together we can do it !!!

Matt S, you will get everything more expensive, it is called inflation.

Two things you have to do, quote more and cut the things need to be done.

Dr Roof Ron

Dr Ron - please tell us more - enlighten us with your insights.

I am the representative of 95% NZ small businesses.

Congratulations !

this particular representative of nz small business is failing if the punters comments are anything to go by

http://www.nocowboys.co.nz/businesses/Dr-Roof/

Pretty poor reporting from Maria Slade at the Herald.

 Headline states

" NZ House Prices hit a high."

Picture of real estate sold sign reinforces inference that  houses have been sold for higher prices.

The story is actually about sellers asking more for their unsold homes in a slow market.

what do you expect from our MSM, who are a compliant and unthinking disgrace

vendors are clearly in lala land, and believing all the bank hype. The economic fundamentals in this country in no way whatsoever justify such bullishness 

for what its worth, over 70% of voters in the stuff poll think house prices are overvalued 

Well I don't know if Bernard is 'still' wrong - as he seems to be more realistic and almost resigned to the fact that the market is strengthening anew.

The rest of the doomsayers on here are yet to come around tho - they must be of a lower reading age.

Rule 1: When putting your house up for sale in this market, add 30%, so that you can 'take a 30% loss' when negotiating a price.

The trouble is, that the buyers know this! So the vendors now have to add 50%, and so it goes on....and still the inventory increases...but at a higher and higher asking price! What was the actual sale price, according to the article? $62,000 less than the asking.....Say no more!

I rest my case re: reading age.

You mean, you don't think vendors ask more for their property than they would accept? I'd love to sell a house to you!

High asking prices is not translating into high selling prices

http://www.radionz.co.nz/news/national/74136/house-buyers-market-despite-high-asking-prices

Many home owners are over pricing their properties , and with buyers still struggling to raise mortgage funds, many homes just aren’t selling.

http://www.financial-news.co.uk/2372/2011/04/homes-unsold-due-to-over-optimistic-asking-prices/

MELBOURNE house prices are falling at the fastest rate in two-and-a-half years.

http://www.heraldsun.com.au/business/drop-in-melbourne-house-prices-biggest-since-gfc/story-e6frfh4f-1226048679363

 

AUSTRALIAN house prices declined in the first quarter by the most since 2008

http://www.smh.com.au/business/house-prices-across-country-suffer-biggest-quarterly-fall-since-2008-20110502-1e55m.html

 

Why dont you read your own urls?

"Auckland sellers are starting to have an upper hand."

Speaking of your post re 'reading age'...! That quotation starts..." he thinks Auckland sellers..." It's not as definative as you post?

You can interpret as you see fit of course - but every month the trend is becoming clearer - and you will have to work harder to ignore it.

"...but every month the trend is becoming clearer..." It sure is! The trend is called Reversion to Mean, as all trends do.

Yup ! ........ " Reversion to Mean "  is a neat little tool in investing ...... Check out the current price of silver , in relation to it's long term trend line ........the trick is however in  the timing ....... wanna go long , or short , now   ? .......... it may buck the trend-line further , and roar up to $US 100 / oz. .

SK - TBH if I was you, I would not be taking risks by investing in property, not at this point in time anyway. Unless you have an equal amount of money in other assets, Buffett would slap you.

I'm sure everyone will take your advice into account.

And if Muppet King comes on this afternoon and says "Sorry ,guys. I've gotten it wrong. I'm off to buy more rentals", what would you do? Sell your properties? Or keep them, and show that you have no conviction in your statement.

Yeah because having a balanced portfolio of investments isn't the way to do it LOL FYI I've made more returns doing this than you ever will in property, go figure though. To the statement "OH BUT THE SHAREMARKET IS FULL OF CROOKS" I reply, "Don't invest in the NZX then. ASX, Daq, Dow, Shanghai Stock Exchange kill your lame rentals". Rental property is the pathetic attempt at the middle class trying to get rich.

Good on yer , Muppet  King : The stockmarket world is open to anyone brave enough to seek out fresh investments . It's a grand game , searching out bargains , and totally brilliant companies . ........ By comparison , the NZX  has a narrow spread of industries , and fairly lax regulations .

[ ... an easy way for novices to join the game is to visit JP Morgan's ADR site ...... ]

Ohh I see the plebs are yet again squabbling yet again over the "value" of their beloved residential property investments.

My grandfather, a man of wisdom and fine intellect always told moi to look at the rate of gross return on your investment ..... and for residential property it should be at least 8%

Anyway my colleagues and I have yet to find such quality properties with these returns .... so onwards and upwards ol' boy.  I will leave you to play "landlords" whilst I get back to my stunning investment portfolio which is returning 15% plus .... although I am not one to boast haw haw.

Residential property investing in New Zealand ..... ppphhhhh waste of time !

 

But Charlie...that means that the average Auckland rent of $415 p.w. should see an average Auckland price of just $270,000. Not the $429.000 asking price this article says....That would mean the average Auckland house is nearly 40% overvalued....

Spot on Snarlypuss my good man (or woman)

Thats why I leave the landlords to their own devices .... as while they are dreaming about the lifestyle which moi has already got,  they are making the banks rich ... which in turn is making moi even richer !!  haw haw

Oh go you good things ... Westminster, SK et al

Anyway back to afternoon cocktails on the deck of my Ocean Front Suite at the Royal Hawaiian .... beautiful day here today overlooking Diamond Head... bliss.

Toodle pip

As ever , Champagne Charlie , your bonhomie and loquaciousness has enlivened our dull afternoon .

....... Bravo to you , good sir ........ Onwards & Upwards : Tinkerty tonk !

OOOOOH..you posh bugger GBH....The Pomposity of his Verbosity is only Exceeded by the Capacity of his Loquacity....

But ya gotta love im don't ya...!

Still it was an exciting morning was it not...?

Absolutely , but between the over flowery verbosity of his words , and his overweaning self aggrandisment , CC speaks the truth ......... Well , about finances and investment , at least .......

..... Not so sure about " moi's " indulgent lifestyle .........Seeing would  be believing ..........

Such damn fine words GBH, you must be a man of class and distinction, with an intellect and wit to match. 

A round of gummy bears for you ..... the expensive, exquisite ones of course haw haw

Toodle pip

 

Enjoy sunset Champer's old thing...each one is without price.