Inventory Levels and Days To Sell Show Significant Declines

Inventory Levels and Days To Sell Show Significant Declines Across Regional New Zealand

REINZ, the most up to date source of real estate data in New Zealand, announced today that regional markets across New Zealand are showing significant declines in the number of days to sell and levels of properties for sale.

Data from REINZ shows between December 2014 and December 2015 the number of days to sell for the regions dropped by almost 28%, from an average of 43 days in December 2014 to 31 days in December 2015. Northland recorded the largest fall in the number of days to sell of 23 days (-39%), followed by Southland at 18 days (-38%) and Hawke’s Bay at 15 days (-31%). In contrast the number of days to sell increased in Auckland by two days and by one day in Canterbury/Westland, the only two regions to record and increase in the number of days to sell.

Data from realestate.co.nz, an industry property listing website, shows over the same period a similar pattern in terms of the number of weeks of inventory (properties for sale) across New Zealand. Excluding Auckland and Canterbury/Westland between December 2014 and December 2015 the number of weeks of inventory fell from 40.3 weeks to 20.5 weeks, a drop of 46%.

Northland also recorded the largest fall in inventory with a drop of 57 weeks (-61%) followed by Central Otago Lakes with a drop of 29 weeks (-58%) and Hawke’s Bay with a drop of 20 weeks (-58%). Other regions to record falls of more than 30% in the number of weeks of inventory include Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Wellington and Southland.

The number of days to sell is a measure of the number of buyers and sellers in a market, with properties taking fewer days to sell when there are more buyers in the market, and taking longer to sell when there are fewer buyers in the market. Linked with trends in the movement in the median price, overall number of sales and movement in the total number of properties for sale REINZ can deliver a full picture of what is driving real estate markets across the regions and across New Zealand.

Commenting on the data Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne said, “This data from both REINZ and realestate.co.nz shows just how broad the growth of the real estate market has become outside the two main population centres of Auckland and Canterbury. Two years ago the picture was very much reversed with both Auckland and Canterbury seeing rapid declines in the levels of inventory and low numbers of days to sell.”

“Now we are seeing the situation reverse with big falls in the number of days to sell coming from the regions while the two main population centres see a some relaxation in the level of inventory, with Auckland’s position easing from a very low level, and a rise in the number of days to sell. This suggests the supply/demand balance across most of New Zealand is now favouring sellers, with the implication for strong price growth moving forward.”

ENDS

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