In a classic supply and demand situation, the New Zealand housing market reached record highs and lows for the month of May with low stock levels driving up average asking prices.
Marketing statistics released by Realestate.co.nz show the average national asking price for May is up 7.2 percent from the same time last year (May 2015) – reaching $570,971, the highest on record.
The number of new property listings that came on to the market nationwide is also the lowest it has ever been, dropping 7.1 percent from the previous month (April 2016), and the long term national average has dropped as well.
In this environment, if no new listings were to come on to the housing market then theoretically, all existing properties in NZ would be sold in just 12 weeks.
South Island regions are on the rise
The Central Otago/Lakes region topped NZ in terms of average asking price at $819,778 — up 17.2 percent from the same time last year. The region also recorded the largest drop in new property listings, which is down 32.9 percent from last year.
Traffic data also reveals a sharp increase in users residing in the neighbouring Otago region viewing property in Central Otago/Lakes, with engagement up by 75.98 per cent on the same time last year.
It’s a similar story for Nelson too, which recorded a record high asking price of $510,709 and a significant drop in new property listings (down 30.9 per cent on the same time the previous year).
North Island is dominated by major cities
As we reported earlier, inventory levels reached a record low for April and now inventory levels have dropped even further for May. If no new listings come on the housing market it would take a mere 5.1 weeks for all properties in the capital city to sell — compared to 5.6 weeks the previous month.
In the Waikato region, asking prices are up a healthy 6.1 per cent on the previous month, coming closely behind Nelson and Central Otago/Lakes in terms of percentage increases across the country.
Currently, the average asking price for a property in the Waikato is $467,717 (compared to Auckland at $879,730). New listings for the region remain relatively static.
Auckland is experiencing a fall in inventory levels too, with listings down 9.2 percent at this time last year. This decrease in inventory listings in one year in a city the size of Auckland is very significant.
Auckland asking prices have risen 2.1 percent since since last month (April 2016) and 10.9 percent in the last year (compared to May 2015).
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