NEWS RELEASE 14 September 2016
Falling inventory creates struggle for stock as sellers wait for Spring
Data released by REINZ for August 2016 shows that housing inventory available for sale is continuing to rapidly fall
nationwide, with an 18% decline in properties available for sale year-on-year and five regions with less than 12 weeks
of supply, representing almost 70% of sales volumes.
According to the latest figures released today by REINZ, source of the most recent, complete and accurate real estate
data in New Zealand, Wellington has the fewest properties for sale with just seven weeks of supply, closely followed by
Otago with 10 weeks of supply and Auckland, Waikato/Bay of Plenty and Hawke’s Bay with 12 weeks of supply.
The number of unconditional residential sales in August was 7,527, up 3% on July this year but down 3% compared to
August 2015. On a seasonally adjusted basis, the number of sales fell 0.2% from July to August. Sales in Auckland were
down 20% compared to August last year.
KEY DATA SUMMARY:Median house price year-on-yearNational
National ex Auckland
Auckland$492,000 - up from $465,000 +5.8% year-on-year
$387,250 - up from $348,500 +11.1% year-on-year
$842,500 - up from $740,000 +13.9% year-on-yearSeasonally adjusted median house price National
AucklandDown 2% on July 2016 and up 6% year-on-year
Up 2% on July 2016 and up 13% year-on-yearMonth-on-month median house priceNational
Auckland$492,000 – down 3% on July ($505,000)
$387,250 - down 1% on July ($390,000)
$842,500 - up 2% on July ($825,000)Median days to sellNational
Auckland30 – down 1 day year-on-year
30 – up 1 day year-on-year
Real Estate Institute of New Zealand (REINZ) spokesperson Bryan Thomson says, “The underlying trends indicate that the
struggle for stock is the single biggest factor driving market behaviour and price expectations across the country, as
we await Spring listings.
“We have been highlighting the lack of inventory for some time, and it continues to be a major contributing factor in
the volume of sales across all regions. This is particularly so in Auckland, where inventory levels are at historic
The national median price rose 5.8% year-on-year to $492,000, but slipped back 3% ($13,000) from its record high of
$505,000 last month.
Two regions hit new record high median sale prices in August:
- Auckland reached $842,500 (up 14% year-on-year, or $102,500)
- Nelson/Marlborough hit $430,000 (up 12% year-on-year, or $45,000).
Excluding Auckland, median prices fell 1%, or $2,780. Central Otago Lakes recorded the largest percentage increase in
median price compared to August 2015, at 41%, followed by Waikato/Bay of Plenty at 23% and Manawatu/Wanganui at 15%.
Section sales, which are exempt from the new LVR ratios, jumped 37% across the country year-on-year, with Auckland
showing an increase of 19%. The strongest growth in section sale numbers in the 12 months to August 2016 occurred in
Hawke’s Bay (81%), Southland (74%) and Central Otago Lakes (71%).
Bryan Thomson says that although on the face of it these numbers might look that there is a direct link between LVR
changes and a jump in section sales, the rise could have been caused by unrelated releases of sections for sale.
“It remains to be seen over time as to whether there is a link between LVR changes and section sales. However, the
increase in the number of section sales is a good indicator of new building consents, with a gap of about four months
between a section sale and a building consent being issued. And, although the rate of increase in section sales in
Auckland lags behind the national growth rate, the trend bodes well for continued growth in housing supply across the
Days to sell
The number of days to sell has only improved by one day at the national level over the past 12 months, although the
regions have seen some significant improvements. Six regions have seen a decrease of 20% or more in the number of days
Auckland is the only region to see a lengthening of the number of days to sell over the past 12 months, up 1 day to 31
There were 1,799 dwellings sold by auction nationally in August, representing 24% of all sales and a decrease of 117
(-6%) on the number of auctions in August 2015.
Transactions in Auckland represented 60% of national auction sales, a drop from the 72% of national auction sales in
August 2015. The number of auctions in Waikato/Bay of Plenty has increased by 40% compared to August 2015, while the
number of auctions has increased by 113% in Wellington, albeit off a small base, and by 69% across the rest of New
Across New Zealand the total value of residential sales, including sections, was $4.481 billion in August, compared to
$4.650 billion in August 2015 and $4.824 billion in July. For the 12 months ended August 2016 the total value of
residential sales was $58.487 billion. The breakdown of the value of properties sold in August 2016 compared to August
2015 is:August 2016August 2015$1 million plus98713.1%84810.9%$600,000 to $999,9991,91525.4%1,83423.6%$400,000 to $599,9991,81924.2%1,99524.9%Under $400,0002,80637.3%3,15040.6%All Properties Sold7,527100.0%7,766100.0%
For further data, tables and charts on prices, volumes, inventory, days to sell, auctions – and regional commentary and
tables – please see the accompanying report.
- ENDS -
Note to Editors:
The monthly REINZ residential sales reports remain the most recent, complete and accurate statistics on house prices and sales in New Zealand. They are based on actual sales reported by real estate agents.
These sales are taken as of the date that a transaction becomes unconditional, up to 5:00pm on the last business day of
the month. Other surveys of the residential property market are based on information from Territorial Authorities
regarding settlement and the receipt of documents by the relevant Territorial Authority from a solicitor. As such, this
information involves a lag of four to six weeks before the sale is recorded.
*Seasonal adjustment is a statistical technique that attempts to measure and remove the influences of predictable
seasonal patterns to reveal how the market changes over time.