May’s New Zealand Property Report in short

Last Friday was 1 June and we all know what that means – the release of Realestate.co.nz’s New Zealand Property Report for the month of May.*

If you haven’t read it already I highly recommend doing so. In the meantime here are some highlights in a hurry:

  • The asking price has gone up, way up in fact. At $435,887 it is six thousand dollars higher than the former record in March, 2.8 percent higher than last month, and 4.5% above this time last year.
  • People normally hold off listing over winter – but not this year. The number of new listings last month was 11,544 – up 16% (seasonally-adjusted) on April and 17% on May 2011.
  • Now why would that be? Well as I’ve said several times in the past, there are a lot of buyers wanting houses, and the sellers have finally read this blog and thought they’d better get in on the action. Or something. Anyway, they’re clearly encouraged by the level of demand, and thus they’re not afraid to ask for a few thousand dollars more.
  • Nationwide the market is tracking back toward the national long term average of 41 weeks. Right now it sits at 36, which means there were no new listings it would take this long for the market to run out of listings.
  • This increase has had some impact on inventory levels – but it’s really a tale of two countries at present. In the regions the extra listings have balanced things in areas where it was more of a sellers market.
  • In Auckland and Canterbury, however, sales are still outstripping listings. Despite a 21% increase in listings from April, Auckland’s inventory level has dropped from 21.7 weeks to 20.6, while Canterbury has dropped to 20.8.

For more trends, and to check out what’s going on in your neck of the woods, check out the full property report. Be sure to watch the video with Alistair Helm and Bernard Hickey too. Yes, I’m in a bossy mood today. Blame the fact there’s no more public holidays FOR FIVE MONTHS.

*Also on this day, General Motors applied for bankruptcy in 2009, New Zealand watched its first TV broadcast in 1960, and in 1815 Napoleon swore fidelity to the Constitution of France. Needless to say, he didn’t really mean it.

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