Following April reports, May numbers continue to show that it is a great time to get on the property ladder. An increase in housing stock along with stable asking prices means buying your first home is beginning to look a little easier. This blog will explore what the latest data around New Zealand real estate shows and why now’s a great time to make a step towards buying.
Increase in Auckland housing stock
An increase in housing stock which began in August 2016 has brought fresh life into the Auckland housing market. Data from realestate.co.nz for the month of May shows the city’s total number of residential properties was up 50.8 per cent compared to that of the same time last year. This is great news for buyers, as more properties means more choices. You can now approach a housing market with less competition and pressure than the previous year.
Auckland appears to be setting a trend - compared with the same time last year, the Waikato, Bay of Plenty, Wellington and Canterbury have seen a lift in housing stock for the month of May. Waikato saw an 18.9 per cent increase, with the Bay of Plenty on 5.1 per cent. Further south, Wellington and Canterbury saw 13.2 and 4.1 per cent respectively.
This is positive for the major centres, with the remaining 14 regions seeing a fall in housing stock compared to that of May 2016.
Stable asking prices
In May 2017 the average asking price in Auckland was up 0.9 per cent from the previous month. While this may be higher than elsewhere in the country, the average asking price in Auckland has not increased by more than one per cent per month so far in 2017. This is an indication of a stable price environment - the last time Auckland’s average asking price increased more than one per cent was in September 2016.
Demand falls in main centres
An increase in housing stock in Auckland, Wellington, Waikato and the Bay of Plenty has coincided with a fall in demand in these four regions - the only areas nationwide to have done so. Auckland sits at the bottom of the demand table for residential housing with a 28.7 per cent drop. Wellington follows at 14.1 per cent and the Bay of Plenty with 8.7. Canterbury was the only main centre to see an increase in housing stock without a decrease in demand.
These statistics show a true shift in the market that favours buyers. With Auckland's housing stock up 50.8 per cent from the same time last year, this might just be the cool in the market you’ve been waiting for to jump onto the property ladder.