Listings not keeping pace with demand: O'Sullivan

The Real Estate Institute has released its latest figures, which show 4841 properties sold in January, up 2.6% on January 2014 but down more than 30% from December.

The national median price was $426,000, up 6% on a year earlier.

REINZ chief executive Helen O’Sullivan said the data showed a typical summer slowdown in turnover, although the drop from December to January was bigger than normal because December was such a strong month.

“The continuing strong performance of Auckland prices is vexing commentators and policy makers alike, however the root cause of the problem remains a shortage of property available for sale. Listings across Auckland remain very low by historical standards and this, coupled with continued high demand, is seeing prices inevitably move upwards. Increases in supply from new construction will help to ease this position, but for the present the lack of listings is the main impetus driving Auckland dwelling prices. The data shows that Auckland’s median price increased by 16% over the past 12 months, compared to just 1.8% for the rest of the country.”

Auckland’s median price was $660,000 in January, down from $678,000 in December.

Canterbury’s median price was $400,000, the same as December and up $30,000 from January 2014.

All regions recorded a decline in sales volume compared from December to January, with Canterbury/Westland recording the largest decline of 40.9%, followed by Auckland with 35.5% and Hawkes Bay with 33.0%. In comparison with January 2014, eight regions recorded increases in sales volume, with Wellington recording the largest of 19.2%, followed by Waikato/Bay of Plenty with 16.5% and Southland with 15.5%.

Dwellings took a median of 42 days to sell in January, 10 days longer than for December, reflecting the usual pattern over the Christmas/New Year period.