Key Facts

  • The residential real estate market is set to be a buyer’s market in the New Year.
  • New property listings are increasing at a faster pace than property sales, leading to higher choices for buyers.
  • On average, asking prices are rising faster than selling prices, amplifying the gap.
  • The gap between new listings and sales has been widening since July, with a difference of over 3100 properties in November.
  • A high number of vendors are ready to put their houses on the market in the New Year.
  • The gap between average asking prices and median selling prices almost doubled in the second half of this year, growing from $68,000 in July to $131,000 in November.
  • The market dynamics are more favourable at the higher price end; however, the market is sluggish for middle to lower-priced properties.

Article Summary

The residential real estate industry in New Zealand is predicted to favor buyers in the coming New Year, according to the latest data from Realestate.co.nz and the Real Estate Institute of New Zealand (REINZ). There has been an increase in new property listings as compared to sales, indicating a broader choice spectrum for prospective buyers. Furthermore, asking prices are witnessing growth at a higher pace than selling prices, thus further widening the gap.

Moreover, the gap between new listings and sales, after nearly closing in July, has begun to expand from that point, with just over 3100 more properties listed than sold in November. This trend is expected to continue with the arrival of December’s sales data, as listings surged past the 10,000 mark in November. In terms of price comparison, the gap between average asking prices and median selling prices nearly doubled within the second half of this year, moving from $68,000 in July to $131,000 in November.

Seller activity is also expected to pick up in the New Year, as a high number of potential vendors are already set to place their houses on the market. However, the market situation varies across different price segments. Agents report that higher-priced homes are moving along relatively well, but the scenario is more sluggish for properties in the middle to lower price spectrum, where affordability issues remain paramount.

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