The New Zealand property market rebounded from the seasonal lull in listings over the summer break with 13,145 new listings coming to the market in February. This is a healthy and expected increase to listings and is only 2% down from the same time last year. The average asking price for properties remains strong, increasing 1% from last month and 4% from February last year.
According to data released today in the New Zealand Property Report, the nationwide average asking price for February, $433,734 (seasonally adjusted), was only 1% off the record high set last October. In particular, Wellington and Central Otago / Lakes experienced record highs in asking price of $453,220 and $642,251 respectively. Auckland saw its average asking price exceed $600,000 for the third time, while Canterbury’s figure surpassed $400,000, for the fourth time.
Paul McKenzie, Marketing Manager for Realestate.co.nz, expects to see asking price expectations remain strong well into 2013. "Although we saw a similar increase in new listings in February last year, the record low in inventory seen in February shows that the market is not slowing down. Asking price expectations of vendors are likely to stay above $600,000 in Auckland and above $400,000 in Canterbury for the near future."
Despite the increase in listings, inventory reached an all-time low of 26.2 weeks nationwide (measured by the number of weeks of equivalent sales), well below the long-term average of 39 weeks and down 27% year on year. Inventory levels are lower than last month in 13 of New Zealand’s 19 regions. This was felt the most in Canterbury, where inventory fell to 16.3 weeks, down 35% on the same time last year. Mr McKenzie says Canterbury’s inventory figure was a record low. "Inventory levels in Canterbury are at half their long term average of 30 weeks and we expect inventory to remain low while rebuilding projects are completed."
New listings for the year since February 2012 are up 4% on the previous 12-month period to 132,236, which shows that vendors are eager to make the most of the tightening market.
