Property Market Update

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Whilst January begun with typical new year low levels of properties available for sale and a only trickle of new listings, online interest in property is hitting new heights. Unconditional reported that in January website traffic on Realestate.co.nz hit a new record with over 1.5 million visits to the site*.

This surging traffic demonstrates the increase in buyer interest and demand for homes. Interestingly this trend seems to have translated into sales with The Real Estate Institute of New Zealand reporting a solid start for the real estate market in 2013 with a 21 per cent increase of houses sold in January compared to 2012.

While January saw some stabilisation to the inventory levels across the country, continuing shortages of listings and positive buyer enquiries are keeping 13 out of New Zealand’s 19 regions strong seller markets. With the demand for homes well above the supply, the number of days properties are on the market are reducing across the country and is now an average of 28 days.

A total of 652 lifestyle properties were listed in January showing a fall of 2.8 per cent when compared to January last year. Asking prices for these listing rose 1.4 per cent across the country when compared to January 2012 and a new record high in asking price was seen in Otago (up 8 per cent).

Apartments listed for sale in January were up 16.8 per cent on last year with 334 being brought to the market. The truncated mean asking price of new apartment listings rose 1.9 per cent to $385,821 in January from $378,750 in December, and was up 10.3 per cent on a year on year basis.

With the Reserve Bank Governor announcing interest rates would remain on hold at 2.5 per cent it is expected that the confidence in the real estate market will continue. Whilst dependant on supply, prices in key areas such as Auckland and Christchurch are expected to increase with auctions being the preferred method of sale.

 

Information for this article was sourced from unconditional.co.nz

* Source: Google Analytics. See full details here.

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