Key Facts
- The housing market in New Zealand is currently unstable with sales levels below new listings.
- Total housing sales in March were up 8.0% compared to March last year, but remained at the second lowest level for March in the last 13 years.
- The property market has seen an increase in the number of homes, with 11,455 new residential listings in the last month. This signifies a 24% rise compared to March last year.
- The total number of residential properties listed for sale reached 33,245 at the end of last month, an increase of 13.5% compared to the same time last year.
- Despite it being the busiest month for real estate, the House Price Index fell by 1.2%, with Auckland prices dropping by 1.9% in the last month.
Article Summary
New Zealand’s housing market currently finds itself in a challenging situation, with dwindling activity as the warm season comes to a close. Although there is an influx of new listings, sales levels are struggling to keep up, evident from the growth of unsold real estate inventory in the market.
March, usually an active month for housing sales was slightly better than last year with an 8% increase in total sales. However, it is important to contextualize this within a 13 year span, within which these sales amounts are to be the second worst following last year. Thus, the surge from disastrous to merely terrible sales levels isn’t an entirely optimistic landscape.
An interesting trend has been detected in the property listings. The past month saw a 24% increase in new residential listings amounting to 11,455 homes. However, only 6521 residential sales were reported showing an increase of just 8% compared to last year. This disparity has expanded the property inventory to a significant 33,245 by the end of the month, a 13.5% rise compared to last year. Adding to the woes, price indices also took a dip last month with a general 1.2% depreciation and a 1.9% decrease in Auckland prices.
These developments allude to the sales tide retreating while a wave of unsold inventory threatens to engulf the market. In the light of this, property experts are advising caution and preparedness for potentially stormy conditions.
