Supply and demand gap widens

And that is pushing asking prices to record highs.

The website reported a seasonally adjusted truncated mean asking price nationwide of $454,795 in May, up 4.3% from the same time last year.

The report said the rise in asking price was noticeable in more than half of New Zealand, with Auckland reaching a new record high of $631,656, and Central Lakes Otago reaching a new high of $707,510.

Northland and Manawatu/Wanganui had the biggest month-on-month increases in asking price, both up 11.9%.

The level of new listings coming on to the market rose in May compared to the month before but was down 7.2% on May last year. There were 11,001 new listings in the month.

On a 12-month moving average, 1% more properties have been listed over the last year than in the year before. But 17.6% more properties sold.

Auckland listings were down 3% in May to 3719 homes for sale. The lack of new listings coming on to the market just adds to pressure on buyers, resulting in a record low available inventory of just 7557 homes, down 27% from a year earlier.

The most significant drop in new listings in May was seen in Gisborne, where they were down 45.7% compared to a year earlier.

Realestate.co.nz said market sentiment favoured sellers in 18 of the 19 regions it reports on, in particular Auckland and Canterbury.