Nine of the 19 regions hit record lows in August
The number of available homes for sale nationwide has dropped to record lows in August, according to the latest report by realestate.co.nz.
The latest data by realestate.co.nz revealed that nine of the 19 regions had seen 13-year record total housing stock lows in August, with the total number of homes available for sale down by 13.2% in August 2019 to only 17,974 listings.
Auckland and Wellington had both experienced shortages in available homes, with their housing stock down by 7% and 18%, respectively. Meanwhile, Taranaki's stock was down by 48%, the most significant year-on-year decrease in stock among the regions.
Vanessa Taylor, the spokesperson for realestate.co.nz, said buyers had fewer choices than ever in the previous month due to the all-time stock lows in nearly half of the regions.
“With many Kiwis unable or reluctant to relocate overseas right now, this too is likely putting a strain on the market,” Taylor said, as reported by Landlords.
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However, the lack of supply has increased house prices across New Zealand – with the average national asking price having increased by 9.1% in July and 21.7% year-on-year to $824,702 in August. Wellington's average asking price increased by 4%, but Auckland's average asking price dropped by 0.8%.
“I suspect that low-interest rates and the removal of LVR restrictions earlier this year are enabling more people to enter the property market,” Taylor said.
“As we have seen in the cramped rental market, everyone needs somewhere to live. Given our country's long-term housing shortage, I expect demand will remain high with both owner-occupiers and investors looking to achieve their property goals.”
