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Real estate listings - Source: ONE News -
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The number of new properties on the market surged in February but with buyers "cagey", the number of unsold houses across the country ballooned, the real estate industry says.
Listing website Realestate.co.nz says in its monthly NZ Property Report that the number of new properties listed on the market in February surged by 47% from January to 15,129, the highest level since April 2008.
But with sales volumes static, the number of unsold houses across the country ballooned to 54,381, and at current sales levels the backlog would take 48 weeks to clear.
Realestate.co.nz chief executive Alistair Helms says February traditionally sees a jump in new listings, but the rise last month was the largest monthly increase since the online property portal was launched more than three years ago.
"More significantly, the expectation of sellers is not matched by sluggish sales volumes which remain static. As a result, the inventory level of unsold houses, as measured by the number of weeks of sales necessary to clear properties on the market, has jumped further to 48.2 weeks," he says.
"In December, the inventory level was 34.3 weeks, so that's a 40% increase in two months. Clearly, the property market continues to become even more favourable for buyers."
Helms says even regions that were a "seller's market" for much of 2009 are now seeing change.
"Wellington, in particular, which continues to lead the country with the smallest stock of unsold houses, is experiencing an inventory level of 29.2 weeks, a 94% increase in the last two months when inventory stood at only 16.5 weeks in December."
Internationally, the threshold at which a market is considered to alter in favour of either buyers or sellers is 28 weeks of inventory.
According to the report, the stock of unsold houses in Auckland and Canterbury had inventory levels of 36 weeks.
The regions with the highest inventory levels were Coromandel at 226 weeks, Northland at 163 weeks, and West Coast at 162 weeks.
First National Group says the monthly survey of its 70 offices found 44% of vendors have become more reasonable in their price expectations since Christmas.
Exact price reductions are unavailable, but 20% reductions are becoming more common, First National general manager John Stewart says.
Areas where sellers are becoming more realistic about asking prices included Wellington, Invercargill, South Auckland, the central North Island, Northland, Alexandra and coastal holiday destinations.
But places where prices are still at pre-Christmas levels included Taranaki, Blenheim, central and northern Auckland, and parts of Christchurch.
"With buyers so cagey at the moment, it is in a vendor's best interest to price realistically or risk waiting many months to sell," Stewart says.
Continuing high website inquiry numbers indicate people are still keeping an eye on the market, and at some stage he expects that will lead to increased activity.
"Right now absolute lack of confidence is holding things back."
