National asking prices eased in the last month of 2013 as new listings fell to record lows: realestate.co.nz

National asking prices eased in the last month of 2013 as new listings fell to record lows: realestate.co.nz

Content supplied by realestate.co.nz

The New Zealand property market registered the lowest number of new listings in December, foreshadowing a potential housing stock shortage in early 2014.

Data released today by Realestate.co.nz in the NZ Property Report shows that the number of new property listings is 6% down on the same time last year.

With just 8,010 new properties, it is the lowest number of new listings on record since Realestate.co.nz started surveying the market in 2006.

The previous low was recorded in January 2011.

Asking prices eased across the country to levels not seen since June 2013, down 6% for the month to $451,448.

Following the record high asking prices recorded in October, this ease in asking prices will be welcome news to buyers looking for a home at the start of 2014.

Year on year, asking price is still continuing along an upward trend. December’s national average is up 7% from last year.

"Trend-wise, we’d expect recovery in these lower December asking prices and expect to see price averages increase throughout the start of 2014," said Paul McKenzie, Marketing Manager at Realestate.co.nz.

In the regions, both Taranaki and Canterbury saw record high asking prices in contrast to the rest of the country, up 5.1% and 1.6% respectively.

McKenzie said, “those looking at property in the Coromandel during December were in a good position” with the region experiencing a fresh new surge of listings and a 12.8% decrease in average asking price.

Listings in the Coromandel were up by 16.6%.

Waikato experienced a 10.2% asking price decrease; with Marlborough also seeing a significant decrease in asking price – down by 9.6%.

Record low listing numbers were driven by record lows in Auckland, Wellington, Hawkes Bay and Otago.

"This will put pressure in those areas – particularly in Auckland," says McKenzie.

Auckland experienced a significant 57% decrease in new listings compared to the prior month and an 8% decrease compared to the same time the year before.

December 2013 saw just 1,897 new listings in the Auckland market, compared to 4,432 new listings the prior month.

Across the country, 13 regions overall saw a decrease in new listings compared to the prior year.

Overall for 2013, there were 131,474 new properties coming on the market in New Zealand. This was a drop of just 0.4% from the prior year.

"When compared to the peak seen in 2007, last year’s new listings were down by a considerable 26%" said McKenzie.

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Regarding the Auckland numbers - This will put the supply and demand theory to test because with reducing stock availability and a growing population one would expect prices to rise. 

Most likely another 14% house price increase in Auckland through 2014

Less listings, lack of buildable sections, Auckland Council rorts on development, increasing immigration, Chinese money, increasing material costs by the big F...
Looks like house prices are going to plummet.................
 
Or not
 

Less listings, lack of buildable sections, Auckland Council rorts on development, increasing immigration, Chinese money, increasing material costs by the big F...
Looks like house prices are going to plummet.................
 
Or not
 

The insurance industry is warning it could pull cover for parts of Christchurch if the findings of a sea level rise report are not seriously considered
http://www.interest.co.nz/property/67980/national-asking-prices-eased-last-month-2013-new-listings-fell-record-lows-realestate#comment-form
 
and in the US (and note article is 2006 so no odubt it's changed even more since then)
 Many hurricane-prone property owners are facing a doubling or tripling of insurance rates over the next several years. The world’s largest insurer, American International Group Inc., is no longer taking on new policies in some Gulf Coast communities.
http://www.earth-policy.org/plan_b_updates/2006/update58
so we wonder why the eck we built in earthquake prone areas, yet we continue to expand our own coastal commuties with little apparent concern.  How long before insurance is pulled here on coastal properties,,,with the Govt step in an insure the Coramandel castles?