Listings reach 10-year high, Trade Me reports
The New Zealand property market is experiencing a notable surge in listings, reaching levels not seen in over a decade, according to Trade Me’s latest Property Pulse report.
February saw a 12% increase in total listings year-on-year, setting a new record for the number of properties available for sale on the platform.
Although new listings slightly declined from February, the overall market inventory remains robust.
Property market starts year with stability and quick sales
Gavin Lloyd (pictured), Trade Me Property customer director, commented on the market’s vitality.
“It’s been a strong start to the new year, sellers are returning to the market and pricing is relatively stable, making for an interesting landscape, whether you are on the sell side or buy side,” Lloyd said.
Additionally, the time properties spend on the market is beginning to decrease, a positive sign indicating increased transaction speeds.
Economist Tony Alexander noted that despite increased market activity, conditions remain buyer-friendly due to falling interest rates attracting newcomers and investors.
Regional inventory increases
Particularly, the Otago region witnessed a significant inventory jump, up 25% compared to last February.
Other regions such as Southland, Wellington, and Canterbury also saw substantial increases in listings, each growing by 19% year-on-year.
This growth suggests that supply is beginning to catch up with demand, which itself has reached a three-year high, up 8% from February 2024.
Price adjustments across regions
Despite a modest recovery in prices from January with a national average asking price increase of 1% to $851,500, year-on-year prices saw a decrease of 2.8%.
Notably, regions like Bay of Plenty and Gisborne bucked the trend with both month-on-month and year-on-year growth in average asking prices. In contrast, major areas like Auckland, Wellington, and Canterbury experienced softened prices compared to the previous year.
Outlook for sellers and buyers
The New Zealand property market, which has favoured buyers for much of the last year, is seeing a shift with properties now selling more steadily.
This modest increase in prices from January is seen as a positive sign for potential sellers watching the market.
However, the market remains competitive for sellers while offering plenty of choices for buyers.
Notable trends in property sizes
In a detailed look at property sizes, Christchurch city reported record highs for three-four-bedroom properties with an average asking price of $787,150, marking a 1.5% increase from the previous year.
Conversely, larger properties in Wellington experienced significant price growth, in stark contrast to Auckland, where the value of larger properties decreased markedly.
Lloyd highlighted the significant price adjustments in Auckland, stating, “In Auckland we’ve seen half a million dollars of value shaved off those larger properties over the past year.”
