Cities could see housing supply shortage - Realestate.co.nz
New Zealand’s major cities could be heading for a shortage in the number of houses for sale according to Realestate.co.nz December report.
Year-to-year new listings were down 2% and the decrease from 13,369 new listings in November to December’s 8732 was 6% once seasonally adjusted.
Auckland, Christchurch and Wellington may all be heading towards a housing shortage and be the most negatively affected by a nationwide 35% decline in new listings from last month.
Auckland, Christchurch and Wellington all had month-to-month new listings decreases of 44%, 52% and 31% respectively, the three highest in the country. Waikato also had a new listings decrease of 31%, putting it third equal with Christchurch.
“New listings are one of the clearest indicators of the health of the property market. The more new listings there are, the more fresh choices there are for buyers, which produces a less stagnant market,” Realestate.co.nz CEO Alistair Helm says.
Asking prices remained relatively stable at $420,109 with only a 1% decrease from November and a 2% decrease three months ago.
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Comments and questions18
That's it Mr. Helm. Keep talking the real estate market up. New listings, taken in isolation, are totally meaningless.
imust rush out and buy a house or soon there will be none left.
Thanks for your objectivity Puss. There is however a housing shortage as the population grows and new houses just aren't being built in any great number. It would be more helpful if you enquired of Councils why they are delaying resource consents and banks as to why they are with holding funds. Glad to see you didn't let the truth knock you off your hobby horese!
So this is this a positive spin on unfavorable news?
I believe another reason for not listing is that the banks are been tougher on readvancing the old mortgages and are requesting they be repaid in full which makes it a lot harder for someone selling to purchase again as you basically have to reapply for a new mortgage plus no guarantee that your current bank will even give you one
the interesting point missed here is that the consistent theme, for the ones listed on the market, appears to be "investors bailing out/cashing up" "investor heading overseas"....
If you look further into this report on unconditional.co.nz you can see that in conjunction with lower numbers of listings, homes are in fact selling faster at the moment, with the average time to sell all the 47.5k current listings in NZ set at 36 weeks, down from the long term NZ average of 41 weeks. In Auckland especially we can see that the number of homes on the market are affecting house prices, with home sold on the shore hitting new (median) highs of $570k
Correct. Coupled with the banks paying higher borrowing costs in a hugely uncertain financial situation with a GFC2 in Europe and the USA even possible, this makes for nervous bankers tightening credit. Another factor is most banks won’t extend a mortgage on any monolithic cladded property – leaky building risks are just too high, regardless of how sound the building might be today.
Then factor new building codes and compliance by councils on top of builders very soon needing to be licensed before final sign-off by councils (about bloody time too – far too many cowboys in the industry with no formal qualifications) all combined with a lack of investor appetite to develop housing speculatively – and hey presto, very few houses being built = housing shortage where the population grows.
High time more inland housing starts (say 1 house per 375 m2 section), no ifs or buts...
Don't worry though George de Jungle, our friends at the UN(United Numbskulls) have a firm grip or plan on the prosperity...or wealth distribution thing and ...of course the olepopulation reduction thing.... plus, they are quite into centralising folk into ghetto's of highly dense urban living ...
No rocket science here. Rising population. Developers bust. 2nd tier financiers bust. Punitive tax changes. Nothing being built or even planned. Standard supply and demand! PLUS, watch for the severe increase in building prices once ChCh rebuild starts (will it ever...?) and the tradespeople left in N.Z. go there, plus building material prices go thru the roof. Also, add the general inflationary effect (AKA 'Multiplier effect') of $16B from offshore insurance money flowing into the economy and you have a recipe for very high new house building costs. Logic suggests that this will flow thru to the costs of current housing, because both are instrisically related. Based on 'old' historical benchmarks, many people may simply not be able to afford this escalated pricing, but they will either end up paying more in rent or in the purchase cost. Its inevitable. Once the numbers start working again, then developers will step back into the market and slowly chip away at the supply deficit. And in a few years we will be back to oversupply again!! And so the economic cycle continues....
What a bunch of dingbats - you are all ignoring the fact that interest rates are at a record low. Its cheap money that is re-inflating the bubble, simple as that. Once that gets pulled (and it will) you'll rapidly see the market go into reverse. All housing booms are a symptom of cheap money, simple as that.
Realestate nz is trying to talk up the market it is flat as a board.The market is just plodding along every house deal that is done is like pulling teeth.
Yes, but when interest rates rise that is normally in response to out-of-control inflation!! So, house prices and rentals still go up - but different driver. Dingbat!!
Or...interest rates rise when the cost of international borrowing goes up / as it slows down (as now) or ... freezes... n houses prices...go where Mr Dingbat yourself! Have you not read history or the papers lately (not the NZ papers of course as they are toilet paper at best). ... . . Anonymous 2.22 was spot on the cheap money (or lack there of)
Is this the same 'looming housing supply shortage' one prominent but deluded BNZ bank economist has been warning NZ about ... for the last 3 years!?
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