The average asking price of home sellers in April remained largely unchanged from March, at $422,520 – just below the market peak in October 2007. However, the inventory level of unsold houses, as measured by the number of weeks of sales necessary t
The average asking price of home sellers in April remained largely unchanged from March, at $422,520 – just below the market peak in October 2007.
However, the inventory level of unsold houses, as measured by the number of weeks of sales necessary to clear properties on the market, remains high having dropped from 53 weeks in March to 46.5 weeks in April.
The figures were released this seek in the monthly NZ Property Report compiled by Realestate.co.nz, which says it has 118,000 listings.
Chief executive Alistair Helm says that in spite of the “massive” inventory on the market, sellers aren’t getting desperate. The fact that asking prices remain steady reinforces his view that sellers are becoming accustomed to a longer sales cycle.
“Houses are typically Kiwis’ biggest assets, so they’re not prepared to capitulate on price when selling, despite the high levels of inventory.”
The volume of new listings coming onto the market in April fell 15% from March, which he says is a typical seasonal reduction. But with more than 46 weeks’ worth of inventory across the country, this does not necessarily indicate a shortening of supply.
There is a significant inventory gap between metropolitan and provincial areas.
Houses for sale in the three main cities would clear the market in 40 weeks, while in rural and provincial areas the cycle would take more than 70.
Overall, the market continues to favour buyers based on the available stock of unsold homes and the number of new listings hitting the market, according to Mr Helm.
