More options for buyers
Those looking to buy property in Auckland now have more options due to the ongoing decrease in demand evident in realestate.co.nz’s latest data.
Thursday, December 1st 2016, 10:00AM
by Miriam Bell
The website’s market statistics for the three months ending November 30 shows a comparative cooling in demand across the main centres – but particularly in Auckland.
Demand was measured by comparing the average number of views per listing for September, October and November 2016 to those in the same period in 2015.
Realestate.co.nz CEO Brendon Skipper said this revealed that Auckland was the only region in the country where demand was down on the same period last year.
Demand in the Auckland region dropped by 8.1% year-on-year.
Auckland’s average asking price continued to rise, hitting another record high, of $947,141, in November.
But the rate of growth has slowed: November’s price went up just by 0.4%, as compared to the previous month.
Auckland properties are also turning over at a more modest pace than in some other markets round the country.
If no new properties were listed in the region, it would take 14 weeks to clear all current property listings.
In comparison, in the currently hot Manawatu/Wanganui region it would take 13 weeks.
Skipper said the slowing rate of growth of the average asking price and a decrease in demand means properties in Auckland are sitting on the market for longer.
“If this trend continues, there will be more choices available for Auckland buyers in the foreseeable future.”
Meanwhile, demand is up in all other regions around the country.
But Skipper said demand was currently particularly strong in areas renowned for lifestyle options.
These regions included the Wairarapa, Marlborough and the Coromandel along with the smaller regions of Gisborne and the West Coast.
Skipper said it appears that, as summer approaches, increasing number of Kiwis are considering investing in a bach or holiday home.
ASB economist Kim Mundy said it appears that some of the pressure has eased in the housing market.
The lift in inventory, combined with slightly weaker demand due to the new LVR restrictions, has pushed weeks of inventory levels up nationwide and notably in previous “hot spots” such as Auckland, Wellington and Waikato, she said.
“Despite the lifts in supply, inventory levels remain very low from a historical standard and this will continue to support house prices.
“We expect housing activity to continue to cool as we head into 2017 and, as a result, inventory levels could continue to climb slightly higher.”
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