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Sellers forced to get realistic

Sellers are being forced back down to earth in terms of price expectations if they want to shift properties, amidst sagging sales.

Tuesday, June 1st 2010, 3:00PM 1 Comment

by The Landlord

Asking prices fell 4% to $407,349 in May from $422,520 a month earlier, while sales in April (the latest figures from REINZ) are down 16% from the same month a year earlier,  according to Realestate.co.nz's latest Property report.  

Asking prices are also now 5% below the market peak in October 2007 (at that time $429,033).

The fall in asking prices of new listings coming onto the market in May indicates that the state of the market is driving a behaviour amongst new sellers to price property to meet the market and also opens up opportunities for buyers.

"Sellers with new listings recognise the need to be aggressive on price with the large volume of property available," says Realestate.co.nz chief Alistair Helm.

"While we've not seen a deluge of cheap property for sale, it does appear that we've peaked on price and there's an opportunity here for buyers. Sellers are hunting them out using price as leverage to beat the competition."

The report also notes that there is no evidence the slowing of current market conditions has anything to do with the Budget announcements made on May 20.

Of the 19 regions the report monitors, seven did show asking price increases, although these were outside the three main centres of which Auckland set the mood with a 2.5% fall in asking price as compared to the recent three-month period.

The number of new listings coming onto the market has also slowed, down 4% from April to 11,733. However, despite May traditionally seeing a seasonal slowdown, new listings are up 17% compared to the same month last year.

The inventory of unsold houses, measured by how many weeks of sales it would take to clear the market, fell to 46.9 weeks seasonally adjusted, down 9% on April's 51.6 weeks.

"The inventory of unsold homes had been rising steadily over the past 11 months, however for the first time the trend has halted," the report says, key contributors to this being the slowing of new listings and sluggish sales.

« Momentum building in house market, according to ANZFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

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Comments from our readers

On 2 June 2010 at 9:45 pm Tony shane Andrews said:
its about time house prices need to come back more yet to be realistic
Commenting is closed

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.97 5.75 5.69

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