Rising inventory offers buyers more choices
New Zealand’s property market is offering buyers more choices and favourable conditions as inventory levels rise to the highest since 2015.
The latest report from realestate.co.nz highlighted a property landscape where the frantic activity of previous years has calmed, providing a “breezy” market environment.
This shift is corroborated by insights from BNZ chief economist Mike Jones, who noted that the housing market is adjusting as population growth now lags behind the increase in dwelling stock, leading to an increase in real estate and rental listings.
Stock levels reach a decade high
In February, national property stock levels surged to 35,712, marking an increase of 10.2% from January and achieving a level not seen in the past 10 years.
“This rise in stock levels brings us back to levels we haven’t seen in 10 years, though not the highest ever recorded,” said Sarah Wood (pictured), CEO of realestate.co.nz.
All regions saw increases, with Gisborne leading with an 80.2% rise, indicative of the significant fluctuations that can occur in less populated areas.
Underwhelming new listings
Despite the typical post-holiday influx of properties, February’s addition of more than 11,000 new listings was below expectations. This figure represents a 27.6% increase from January but is still 3.6% lower than the same period last year.
“We’re used to seeing a rush of new listings as everyone gets back from the beach and into business as usual. This year it’s less dramatic than the 40% uplift we would usually see,” Wood said.
Adjusting asking prices
The national average asking price adjusted to $851,090, a decrease of 4.7% year-on-year and 2.0% from the previous month, reflecting sellers’ flexibility in a market flush with options.
“With high stock levels, sellers are having to be more willing to negotiate,” Wood said.
Several regions experienced both year-on-year and month-on-month declines, with notable decreases in Central Otago/Lakes District and Wellington.
Market dynamics: A steady balance
While the market offers more leeway for buyers, it remains balanced. Only two regions, Auckland and Nelson & Bays, are considered buyers’ markets, indicating slower than usual sales activity. However, the overall market is not dominated by either buyers or sellers.
“Properties are still selling, but at a steady pace,” Wood said. “This is great news for buyers who have more options and more negotiating power.”
