tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, July 15th, 6:28PM

News

rss
Latest Headlines

Listings fall as property sales rise

Rising property sales are starting to bite into the country’s stock levels leading to house price rises.

Friday, July 21st 2023, 10:14AM

by Sally Lindsay

As buyers return to the market they are putting upwards pressure on property prices as listings dip, the latest CoreLogic Housing Chart Pack shows.

Residential sales rose 17% in the 12 months to June, hot on the heels of the 8% annual bump in May, while the flow of new listings coming on to the market each week has remained sluggish month-to-month. The figures show new listings down -30.8% in the four weeks to 2 July.

Sales volumes up

CoreLogic chief property economist Kelvin Davidson says two consecutive months of improved activity, measured across agent deals and private activity, is a strong indication sales volumes are bottoming out.

He says the increase is starting from a low base, but as pent-up demand starts to emerge it is likely sales will increase during the remainder of this year.

An improvement in sales volumes, says Davidson, reflects the broad peak in mortgage rates, the ongoing strength of the labour market, high net migration, and slightly looser credit rules – as well as a tentative change in house-buyer confidence.

Listings stall

Listings remain almost 25% below the previous five-year average, says Davidson.

“With the weekly flows of new listings coming on to the market still running at low levels, this early upturn in sales is now eating into the total stock of listed property, especially in key areas such as Auckland, Bay of Plenty, and Wellington.

“Would-be vendors are choosing to ‘wait and see’, given the uncertainty about how long a sale might take and/or the potential price achieved,” he says.

“Arguably it remains a ‘buyer’s market’, with the national total stock of listings on the market still relatively high. However, there is also a downwards trend now evident for stock levels too, which may start to contribute to competitive price pressures.”

This month’s CoreLogic House Price Index shows the decline in values nationally accelerated to 1.2% over the month, taking the annual downswing to 10.6% in the year to June.

Still, Davidson says the trend isn’t unusual, given the natural lag between sales and prices. And the second half of the year is likely to hold some kind of housing market upturn.

“The end of the downturn doesn’t necessarily mean the market is destined for a sharp rebound,” he says.

“Housing affordability is still stretched, and caps on debt-to-income ratios loom large next year.”

The second half of the year still looks likely to hold some kind of housing market upturn – which will be good or bad, depending on your perspective, Davidson says.

Tags: CoreLogic

« House value rises predicted for early next yearHousing price surges can be interest driven »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 15 July 2024 11:47am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com