NZ Property Report February 2014

NZ Property Report February 2014

Residential property asking prices reach all-time high
Record asking prices in Auckland push up the national average

AUCKLAND, 4 March 2014 –Average asking prices for New Zealand homes for sale hit a new record high in February, as sellers responded confidently to continued strong buyer demand for the limited number of properties available.

The record high average asking price of $483,099 – revealed today in the NZ Property Report, a monthly report of housing market activity compiled by realestate.co.nz – was driven up by new record asking prices in Auckland ($677,370), where asking prices have risen by 12% in the last 12 months.

Paul McKenzie, National Marketing Manager for realestate.co.nz, says the new high is part of a continuing growth pattern. “While the asking price did reach a new high, a nine per cent increase from the same time last year, it is only a one per cent increase on last month. Asking prices are trending upwards and look set to remain high into the spring season.”

Mr McKenzie said, “buyer interest is at an all time national high”, with more than 1.7 million visits to realestate.co.nz sites in the last month (source – Google Analytics).

“While this high level of buyer interest is underpinning seller confidence, buyers will be disappointed with the higher average asking prices and relatively low levels of new listings,” Mr McKenzie said.

February saw 12,167 new properties come to the market, up 31% on the prior month (due to seasonality) and down 7% year-on-year, “but this did nothing to ease the market pressure, evidenced by a fall in inventory”, he said.

“The number of homes available for sale eased to 26 weeks of stock, well below the long-term average of 37 weeks, which is another indication that the market is in the seller’s court.”
Mr McKenzie said asking prices were higher in February across more than half of the country with 11 regions reporting a rise. Apart from Auckland, big rises were also seen in Wairarapa, up 24% year-on-year to $329,396, Marlborough up 16% to $418,945, and West Coast up 8% to $320,245.

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