Stock on market falls further

Realestate.co.nz’s latest data shows that the total number of properties available for sale nationally was down by 3.8% (21,288) as compared to July 2017.

Nationally, 7,508 new listings came onto the market in July, which indicates a 5.4% year-on-year decline.

Auckland and Wellington both recorded significant falls in new listings (of 7.0% and 16.7% respectively) as compared to July last year.

Further, seven of the 19 regions recorded the lowest number of new listings in any July month since Realestate.co.nz started collecting data over 11 years ago.

Coromandel, Wairarapa, Nelson/Bays, Northland, Central Otago/Lakes, Marlborough and Otago all registered record lows.

Of this group, Coromandel registered the biggest fall in new listings as compared to July 2017, fall. It saw a drop of 24.3% in listings.

The Wairarapa region was close behind, with a 23% fall in new listings (77).

In contrast, five regions recorded an increase in the number of new listings in July compared to July last year.

Taranaki led the way with a 20.2% increase in new listings (196 homes). It was followed by Gisborne, Waikato, West Coast, and Canterbury.

Realestate.co.nz spokesperson Vanessa Taylor says that while there are fewer properties on the market to consider, interest in the market is lively.

“Typically, interest in property peaks in the first quarter of the year and then gently declines as we head into winter, before lifting again as we head back into spring.

“But searches for properties in July on realestate.co.nz returned to 2018 summertime levels… This jump in July is unusual.”

While it’s yet to be seen whether this translates into an increase in sales, it indicates that Kiwis are still engaged in the housing market, she says.

But the decline in listings may well be helping to keep the pressure on average asking prices around the country. They inched up by 0.9% in July, as compared to June.

Taylor says this could be considered a classic supply and demand situation, but here are significant variations across the country.

“So there is no one-size-fits all. For serious buyers, it could be likened to cherry-picking in a very large orchard.”

Auckland’s average asking price was up for the first time in four months. It rose by 3% in July to reach $959,067.

Six regions turned in record average asking prices in July, as compared to June. Northland saw the biggest rise with a 6.3% increase to $623,799.

Manawatu/Wanganui was up 3.3% to $357,206, Waikato rose 2.2% to $575,102, while Wellington, Wairarapa and Nelson & Bays were all up 1.5% (to $628,899, $487,941, $622,994 respectively).