Homes selling faster in regions

REINZ data shows that, between January 2015 and January 2016, the number of days to sell for properties in many regions around New Zealand declined significantly.

Northland recorded the largest fall with a drop of 23 days (-39%), which took the number of days to sell from 59 to 36. 

It was followed by Southland with a drop of 18 days (-38%) and Hawke’s Bay with a drop of 15 days (-31%), which left their number of days to sell at 29 and 33 respectively.

Only two regions recorded an increase in the number of days to sell.

They were Auckland where number of days to sell went up by two days (6.9%) to 31 and Canterbury/Westland where number of days to sell rose by one day (3.4%) to 30.

Meanwhile, realestate.co.nz data shows a similar pattern in the number of weeks of inventory (properties for sale) across New Zealand, between December 2014 and December 2015.

Excluding Auckland and Canterbury/Westland, the national number of weeks of inventory fell from 40.3 weeks to 20.5 weeks, which was a drop of 46%.

Northland experienced the largest fall in inventory with a drop of 57 weeks (-61%).

It was followed by Central Otago Lakes with a drop of 29 weeks (-58%) and Hawke’s Bay with a drop of 20 weeks (-58%).

Other regions to record falls of more than 30% in the number of weeks of inventory include Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Wellington and Southland.

REINZ Chief executive Colleen Milne said the REINZ and realestate.co.nz data illustrated just how broad the growth of the real estate market has become outside Auckland and Canterbury.

Two years ago both Auckland and Canterbury were seeing rapid declines in the levels of inventory and low numbers of days to sell, but now the situation was reversed, she said.

“We are seeing big falls in the number of days to sell in the regions, while Auckland and Canterbury see some relaxation in the level of inventory and a rise in the number of days to sell.”

Milne said this suggested the supply/demand balance across most of New Zealand now favours sellers.

“This has the implication for strong price growth moving forward.”