Fewer new property listings in May continue three month downward trend

The number of new property listings throughout New Zealand continues to decline for the third consecutive month, with listings in May dropping a further 5% on April. The data was released today in the NZ Property Report, a monthly survey of market activity compiled by Realestate.co.nz, the country’s leading property listing site.

According to Realestate.co.nz CEO, Alistair Helm, “Only 9,993 new listings were added to the market in May, 29% down on the same figure for May 2008. Meanwhile, the asking price for new property listings is down 6% from the market’s peak in October 2007.

“The drop in new listings in May has led to the available stock of properties on the market falling to an inventory level of only 35 weeks, down from April’s level of 42 weeks, and May 2008’s level of 45 weeks,” says Realestate.co.nz CEO Alistair Helm.

Last month’s 35 week level compares to an average inventory over the past two and a half years of 38 weeks, during which time the level has fluctuated between a low of 20 weeks and a peak of 52 weeks. A level of 28 weeks in inventory is an indicator of a threshold between a buyer and seller market, with fewer than 28 weeks considered to be more amenable to sellers, while more than 28 weeks favours buyers.

“The trend highlighted in last month’s NZ Property Report – a significant fall in listings pointing to a turning point in the market – continues to be a theme demonstrated in today’s report,” Mr Helm added.

In the Coromandel region, the high number of listings contributed to the biggest drop in asking price across the country, a fall of 7.4% on the previous three month average. In addition, Coromandel recorded the highest inventory level in the country, equivalent to 182 weeks, or more than three years of listings. Other regions with high inventory included Northland, Central Otago/Lakes and West Coast, which all recorded more than 100 weeks, i.e. in excess of two years.
At the other extreme, regions in which the balance still favours sellers included Wellington (1b6 weeks of inventory), Taranaki (20 weeks), and Nelson (23 weeks) which also recorded the smallest drop in new listings.

The full NZ Property Report, as well as further information and analysis of the report’s findings, can be found on the Unconditional blog at www.realestate.co.nz/blog
About Realestate.co.nz

Realestate.co.nz is the official website of the New Zealand real estate industry, and provides the most comprehensive selection of listings across all categories of real estate. Realestate.co.nz lists over 100,000 properties at any one time, representing over 90% of all listings currently marketed by real estate professionals.