Month-on-month price drop

The agency has released provisional data for the month, which also shows a drop in new listings.

The average sales price in the northern region – which includes Auckland and Northland – was $670,656 in July.

In June, it was $721,553.  In June 2013, the average for the region as $632,562.

The number of new listings was down 38% compared to July 2013.

Harcourts CEO Hayden Duncan said there was an overall lack of housing stock and people were hesitant about listing their house for sale because they worried they would not be able to buy elsewhere. “Others are holding on to property when they buy somewhere new, as rental returns are so lucrative.”

He said, while a seasonal drop was to be expected, the drop in new listings was large enough to indicate other factors.

Duncan said there was likely to be a resurgence in the number of listings when spring arrived.

He said the current climate was a good time for sellers to take advantage of lower levels of competition coupled with strong selling prices.

He said Harcourts was continuing to push for the timely and quality construction of new homes to keep up with the demands of our growing population.