Key Facts

  • The housing market appears to be off to a slow start for the summer.
  • There is a growing gap between the number of properties being newly listed for sale and the number selling.
  • From June to October, new property listings rose by 53%, while sales remained stagnant.
  • The number of sales went from being 589 less than the number of listings in June, to 3910 less in October.
  • The average asking price increased from $841,688 in June to $920,678 in October, up by $79,990, while the median selling price only rose from $780,000 in June to $795,000 in October.
  • If current trends continue, we could see total stock levels rise, properties sitting on the market for longer, and downward pressure on prices.

Article Summary

The New Zealand housing market is experiencing a sluggish start to the summer season, notably a stark gap between available listings and properties sold. According to data from Realestate.co.nz and the Real Estate Institute of New Zealand (REINZ), new listings have surged without correspondingly robust sales.

From June to October, new listings shot up by 53%, but sales stayed mostly steady. Consequently, the disparity between listings and completed sales grew from 589 in June to 3910 in October. This rising divergence in the housing market counters hopes of a summer season recovery.

Housing prices reveal a similar trend, with average asking prices escalating relative to median selling prices. In the same June-October period, the average asking price shot up by $79,990, whereas the median selling price registered a mere increase, inching up from $780,000 to $795,000. This substantial growth in the disparity between asking and selling prices has likewise confounded industry expectations.

If the current market trends persist, New Zealand may expect rising stock levels, prolonged on-market durations for unsold properties, and the potential return of a buyer’s market, causing an inevitable downward pressure on prices.

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