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.
According to the latest figures released 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.
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 lows.”
For the Nelson/Marlborough region the median price rose $45,000 (+12%) compared to August 2015 to reach a new record high. Sales volume compared to August 2015 rose 12%, with sales rising 26% in Marlborough / Kaikoura and 5% in Nelson.
REINZ Spokesman, Bryan Thomson noted that “The region continues to be active, with solid activity across a range of price points. The number of first home buyers appears to have fallen a little, although investors continue to be active in the market. The number of listings has increased slightly over August, which is providing greater choice to buyers, although vendor expectations are increasing.”
For our local Motueka market and surrounds the warmer weather delivered a surge in new listings with numbers up 100% on the previous month and 30% on this time last year. Sale remained at the same level as this time last year so the net effect was a small increase in the number of new properties available. The median sale price remained above $500,000 for the second month in a row, with the sale prices averaging 24% above the properties current capital value.
Considering the current supply / demand levels and factoring in the tighter lending criteria for investors I see the market in the coming months remaining strong for new and well maintained homes but perhaps being a bit softer for properties that sit outside the average buyers wish list.
Content and statistics quoted in this article are sourced from REINZ and in-house, while we endeavor to keep the figures as accurate as possible they cannot be guaranteed.