Four new regions in New Zealand have emerged as “buyers' markets” as more homes have become available for sale than people buying, according to the latest report by the Realestate.co.nz.
The latest data by the Realestate.co.nz revealed $747,748 average asking price of residential property for sale held stable in June 2020, up by 10.4% in June last year.
Among the regions, Auckland, Canterbury, Central Otago/Lakes, and Nelson had become buyers' markets based on inventory levels.
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In contrast, Canterbury, Gisborne, Marlborough, and Wairarapa were the only regions that had fewer new listings this year than last year.
“Inventory data indicates the turnover in the market. When inventory is higher than the 13-year long-term-average, it tells us that there is more stock available than people buying property, and this signals a buyers' market,” said REINZ spokeswoman Vanessa Taylor, as reported by Stuff.
“Often in times of uncertainty, those who can hold off on selling will, as they wait to see what the future holds. But with new listings up and prices stable – it looks like Kiwis are still selling and, in most regions, that they have not significantly lowered their price expectations.”
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There would be no houses for sale in 37 weeks if no listings would come up in Auckland soon and all existing stock listed on Realestate.co.nz would be sold, said Taylor.
“The last time we saw a buyers' market in Auckland was July 2019, in Nelson and Bays October 2014, in Canterbury July 2011, and the last time that Central Otago/Lakes saw a buyers' market was January 2012,” she continued. “This might be a good time for potential buyers in these regions to start seriously looking.”
Coromandel, Hawke's Bay, and Southland had seen all-time asking price highs – with Coromandel's average asking price rising above $800,000 for the first time and increasing by 14.3% on the same time last year, to $847,950.
“Overall, what the national increase in new listings tells us is that the market is not slowing down. Vendors have been busy preparing their properties and have wasted no time in getting their homes on the market,” Taylor concluded.