Record drop in January home listings creates opportunity for sellers and buyers in 2011

For a second month in a row, the New Zealand property market has seen a significant drop in the number of new listings, indicating that vendors are still highly cautious about entering the market.

According to data released today in the NZ Property Report – a monthly report of market activity compiled by Realestate.co.nz – the number of new property listings is 19% down on the same time last year. At just 8,300 properties, it is the lowest number on record since Realestate.co.nz started surveying the market in 2006. The previous low was recorded just last month in December 2010.

CEO of Realestate.co.nz, Alistair Helm, says that although new listings are clearly drying up in the New Year, vendors may be being overly cautious, as there is evidence to suggest that buyer interest in new properties is significantly higher now than it has been for a long time.

“Inventory – which saw its 12-month peak last November at 53.2 weeks – has now fallen to 47.9 weeks. The average asking price has also fallen sharply, down $10,000 in January to $406,525. Basically, the glut of unsold houses has eased even further, and prices are more realistic,” says Mr Helm.

“Yet while the figures indicate that vendors are continuing to be cautious and lower their expectations, we’re also seeing an increase in the numbers of buyers doing research into the availability of new properties.”

Mr Helm says that in January more than 2 million unique browsers reviewed property websites in general, as monitored by Nielsen Online – up more than 24% on the same month last year. In January, the Zoodle property information website had 100,000 visitor sessions – up 70% as compared to January last year.

“Buyers are clearly on the hunt for interesting new properties and looking for a good deal,” says Mr Helm.

He says that interest in Realestate.co.nz’s new free iPhone app – released in November 2010 in association with Westpac – has also been above expectations, with more than 14,000 downloads, and over 1,000 users a day searching for new homes through the app.

As for the Property Report, Mr Helm says that it should be good news for these homebuyers too, as the current asking price for properties is now 5.6% below the peak of the market in October 2007.

“It’s one of those rare times were the selling opportunity can be well matched to a good buying potential. It will be very interesting to see where the trend leans in the coming months,” says Mr Helm.

“If the number of new listings drops any further it will be somewhat troubling for the market,” he says; “However, the level of interest in new properties should be a signal to potential vendors that now is the time to list. Buyers are out there, and they are keenly looking for good new properties.”

Realestate.co.nz is the country’s most comprehensive property listing website with more than 120,000 real estate listings covering residential, commercial, business and farms for sale.

The latest issue of the NZ Property Report, covering December, plus more analysis of the property market can be found on www.unconditional.co.nz, the news and information website for New Zealand real estate.