July has seen some interesting property market data come to light. We’ve seen housing inventory in Auckland remain very much in a state of under-supply with the number of available listings in Auckland being reported as 11% lower than the same time last year. Nationally there’s been a 15% decrease in available listings compared to the same time last year.
The Auckland market had 3,031 listings for sale in the month of July which represents a 2% decline compared to June (3,092 listings). Realestate.co.nz reports that “New listings are in short supply, not just in the major cities but right around the country. Matched to this and as a function of this and the upturn in sales, the level of inventory of unsold property on the market is edging down nationally below the long term average. This low level of supply, if not met by a rise in supply in the short term, could result in…price pressure upwards”
We’ve already noticed this price pressure being created through continued competitive bidding through our winter auctions and in July we sold 90%* of our auctions. Over the last 3 months our auction success percentage has been 90%* of all auctions offered.
Some other interesting activity with Mortgage Rates. The ASB moved early last week and hiked its one year rate is up 20 basis points to 6.15%, its 18 month rate up 40 points and two year rates up 25 points. Conversely Bank Direct leads the market with a 5.90% 1 year loan. It will be interesting to see how the other banks react.
It will be also interesting to see if the OCR get’s hiked this week. A recent article has been written presenting an interesting counter-view to hiking the OCR. Click here to read it
The Latest Real Estate Overview from the BNZ included the Confidence survey. Here are some interesting comments on the Market from Real Estate Agents:
“Lack of new listings. Multi-offers are now common. Relatively good sales volume considering its Winter”
“Good demand for the right property. Shortage of listings”
“Supply and Demand. We have people wanting to buy but not many people want to sell at this time. Interesting
Times. Maybe people are still waiting ‘till Spring when gardens look nice but would be great to get on the market
Now when supply is so low.”
Thanks for reading and we look forward to touching base with you again soon.
*Note: These are properties which sell prior to, at, and post auction.