The New Zealand property market has plateaued, as a rise in new listings failed to provide a much needed boost to the market last month.
Realestate.co.nz's October Property Report shows 11,911 properties came onto the market last month, up on the number of listings recorded during September,
but a 12.1 per cent fall when compared to the same month last year.
The combined total of properties listed in August, September and October (the traditional spring lift period) was 32,274, marking a 12.5 percent fall from the same time last year.
Spring is traditionally a pivotal time in the property market, as better weather returns and more houses are listed.
However today's data suggested a stagnant climate that could last for months, Realestate.co.nz chief executive Alistair Helm said.
"If a property hasn't listed by now, it's unlikely that it will before the Christmas period.
"With sales slow and listings not coming on, the market clearly reached a plateau in October, and it's not getting any better. At this point it's fair to say that Spring has passed us by."
The national asking price for all listings during October was $420,451, up from $411,745 last month and $418,759 in October 2009, in line with market trends.
The market tended to see a rise asking price during the spring, as more properties came onto the market, Helm said.
"The key issue is that with the high levels of inventory, the strength in
asking price is counter to the market trend which was seen in 2008 when prices softened."
The current asking price is now just two per cent below the peak of the market in October 2007.
The sluggish sales activity was also failing to eat into the high number of unsold houses nationwide, Helm said.
Inventory, as measured by the number of weeks of sales necessary to clear properties on the market at any one time, was already high at 47.5 weeks in September and edged up again in October to 48.8 weeks.
Based on these inventory levels, New Zealand remained a buyer's market, Helm said.
- NZ HERALD ONLINE
