House listings and asking prices up
The property market is swinging in favour of the seller, according to a Realestate.co.nz report.
In August new listings rose 9% on a seasonally adjusted basis and length of time on the market fell to 37 weeks compared to the long-term average of 41 weeks.
There has also been a 3% seasonally adjusted rise in asking prices, but it’s still 3% below the peak in asking prices in April.
The trend was seen in 12 of the 19 regions throughout the country, with the most significant rises in the central North Island and the Taranaki regions - up 7.5% and 8.7% respectively. Auckland, Wellington and Canterbury all saw modest movements of less than 1%.
Asking prices dropped in Gisborne, Nelson and Waikato.
Lifestyle property listings across the country rose in August with a 22% seasonally adjusted increase to 760 listings. The total is still a 10% decline from last year. Over the 12 months was 11,061 new lifestyle property listings brought to the market, down 12%.
New apartment listings shot up in August with 629 new listings coming onto the market. This represents a 51% seasonally adjusted increase and the highest level for over 18 months. The asking price expectation fell by 12% on a seasonally adjusted basis to $328,777
In the Auckland there were 462 new listings, an 81% seasonally adjusted increase. The asking price truncated mean was $302,425 – down 11% on a seasonally adjusted basis to the lowest point since the data reporting began in early 2007.
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Comments and questions7
so I take the property off the market for a month, relist it (with an asking price as there was no interest without one) and the market is looking up?
whocrashedtheeconomy dot com for what we can look forward to here very soon
37 and 41 weeks are correct.
Hi Ed
I went to realestate.co.nz to check because the numbers do not make sense in the context of the NBR posting.
The 37 weeks and 41 weeks are the "inventory" on the market based on the current sell rate.
Hope this clarifies the issue.
Time on market never makes sense, because it only reports the properties that sel, and that's not the whole story. If they sit on the market for days, weeks or months and are then withdrawn, as many are, they are not included. A better measure is the number of new listings compared to the number of sales each month. A growing inventory points to a slow market, while a falling inventory means a fast market.
New bubble in the making.
I'm always amazed at the new stats dreamed up real estate sales people to try and prop up asking prices. The trend continues to be negative with further signs of a market downturn. Only a fool would buy now IMHO.
The very fact that asking prices are used is a strong sign of market weakness and seller desperation IMHO, as sellers and their agents can no longer expect buyers to put forward their best offers under a PBN scenario.
Asking prices are also a price ceiling - smart buyers will offer up to 30% less and negotiate to something around 20% under what the seller asks for It's simply the way things are played. Nothing has changed,
I sense that there is a shortage of quality houses for sale now in the city fringe of Auckland - and hence upward pressure on house prices in the short term.
The statistics available cannot tell us much about the real supply and demand and impact on prices - and I pay no attention to them. (varied stock and not enough sales to analyse in any useful way with a short time horizon).
There have been two houses list as short notice auctions in my street and sold within a couple of days of listing which points to buyers snapping up properties.
I cannot sell as I would need to buy again on the same market...
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