Lack of supply hits New Zealand property market

tony nguyen

Prices of homes in New Zealand have been rising due to classic market pressures of supply and demand.

Asking prices have now hit record levels in some regions with last month seeing mean figures of $443,734 across the nation. The records fell in Wellington when prices rose to $453,220 and Central Otago/Lakes with a high of $642,251.

According to the latest data the number of listings increased in December 2012 and January 2013 but they are still down 2% year on year.

Listings in Auckland were down 4.2% in February compared to the previous year, while sales in January rose 26.7%.

The number of new listings coming onto the market in February increased by a massive 49%, although on a 12 month moving average basis it actually represents a rise of 4%.

Of all New Zealand’s regions, 13 of the 19 are currently showing inventory levels that are well below long term averages meaning that the overall market conditions favour sellers who are therefore able to stick to hard bargaining when it comes to achieving asking prices.

Auckland saw prices increase by 7.7% in 2012 but the highest year on year growth happened in Central Otago/Lakes region. Here a record high of $642,251 made it the highest regional listing price ever recorded in New Zealand and represented an annual rise of 21%.

Bearing in mind New Zealand’s seasonal listing trends, March is expected to see an increase in supply but not enough to substantially alter the overall trends.

The main cities continue to suffer from low levels of supply, Auckland seeing listings down 4.2% year on year in February, but the buoyancy of the market is clearly shown by the 26.7% rise in sales.

If you are looking to send money abroad there are many different options available, so you need to compare the market beforehand to get the best deal on the exchange rates available.

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