With more than 35,000 properties on the market in February, housing stock is at a ten-year high, yet new listings are coming in slower than expected, says realestate.co.nz Chief Executive Sarah Wood
The latest data from realestate.co.nz shows a continued rise in the number of properties available for sale, reaching levels not seen during February for a decade. Despite this, the number of new listings was lower than expected, and the national average asking price dipped slightly, indicating that sellers are continuing to adjust to market conditions.
Even though buyers continue to be spoilt for choice, the market remains active and looks relatively breezy, especially compared to the frantic pace the market saw in 2021.
Buyers have time to breathe and do their due diligence as stable market conditions continue, while properties are still selling through, which is good news for sellers.
Nationally, stock climbed to 35,712 in February, a 10.2% increase from January. The increase was seen across all regions, with 14 of 19 regions recording double-digit increases.
Gisborne experienced the biggest rise in stock, rising 80.2% month-on-month. High stock and new listings percentages are often seen in less populated regions like Gisborne due to its small listing set.
Nationally, the continued rise in stock levels brings us back to levels we haven’t seen in ten years, though not the highest ever recorded.
Over 11,000 new listings came onto the market in February, marking a 27.6% increase from January. Although February is usually a busy month for new listings, this February was lower than expected.
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.
Compared to the same time last year, new listings were down 3.6% nationally. A mixed bag of growth and decline was seen across the regions, with Gisborne seeing a 79.4% increase in new listings, and Northland the largest decline, down 23.4%.
Prices dip as sellers flex to meet buyers
The national average asking price dipped to $851,090 in February, down 4.7% year-on-year and down 2.0% month-on-month. Despite the drop, the national average asking price remains between $840,000 and $890,000, as it has for the past two years.
The slight decline nationally suggests sellers are becoming more flexible as stock levels remain high. With high stock levels, sellers are having to be more willing to negotiate.
Seven of nineteen regions saw both year-on-year and month-on-month decreases in average asking prices. Leading the way was Central Otago/Lakes District (down 7.9%), Wellington (down 5.3%), West Coast (down 6.9%), Bay of Plenty (down 6.5%), Northland (down 3.9%), Auckland (down 3.5%), and Taranaki (down 2.6%).
At the other end of the spectrum, only three regions saw month-on-month and year-on-year growth: Gisborne, Otago, and Marlborough. Two regions achieved all-time February average asking price highs: Marlborough ($807,847) and Otago ($645,377).
While buyers have more negotiating power due to the number of properties on the market, the market isn’t fully in buyers’ power nationwide. Just two regions, Auckland and Nelson & Bays remain buyers’ markets, where properties are selling at a slower rate than usual.
The data shows a more balanced playing field between buyers and sellers. Properties are still selling, but at a steady pace. This is great news for buyers who have more options and more negotiating power.
The good news for sellers is that properties are selling, with the number of properties sold increasing in January by 17.5% year-on-year according to the Real Estate Institute of New Zealand.
