Home Real Estate Changing housing market spooks some potential vendors

Changing housing market spooks some potential vendors

by Ozva Admin

The changing housing market may have spooked some potential sellers this October, new figures from realstate.co.nz suggest, as annual listings fall and sales prices continue to trend downward from the peak of January.

Houses in Wellington (file).

New listings on the property website last month were down across the country and in 14 of the country’s 19 regions compared to October 2021.

Realestate.co.nz spokeswoman Vanessa Williams said the site saw -16.3% fewer new listings year-over-year during the month of October, suggesting “property owners shied away from putting their homes on the market” in what is typically an “important month”. for residential listings”.

Williams said that while the uncertainty of the Covid-19 lockdowns last year had an impact on buying and selling, “now the uncertainty has moved into the cost of living and inflation, as well as rising interest rates.” “.

“This could be prompting providers to sit tight as we navigate this changing landscape.”

The largest drops in the number of new listings were seen in Central Otago/Lakes District, which had just 190 listings (a decrease of -35.2%). It was followed by Wairarapa, which had 97 listings (-33.1%); and Gisborne with 50 listings (-30.6%).

However, some regions bucked the trend, with double-digit growth in Coromandel, which had 132 listings (up 38.9%); Nelson and Bays, with 186 listings (17.7% more); Waikato with 797 (13.7% more); and Marlborough, which had 126 (13.5% more).

However, the total housing stock has increased at the national level and in the 19 regions.

Regions hold up as selling prices in major centers continue to slide

Cooling sales prices in major hubs have pushed the national average sales price down from its January 2022 peak.

The month-over-month declines were largely seen in the North Island, where the capital fell -7.7% to $891,375. It was followed by Auckland, which fell -6.2% to $1,159,906). Meanwhile, the Wairarapa saw a -5.6% decline to $767,961, while the Coromandel fell -2.9% to $1,074,809.

Williams said that despite the concerns, October is still a good time to sell.

In October, realestate.co.nz users increased by 11.7% per month, while page views also increased.

“When prices go down, hesitant buyers come back into the market, from all different segments,” Williams said.

“Anecdotally, we’ve heard of a lot of first-time homebuyers coming back into the market, along with investors.”

However, he cautioned that property prices are “a mixed bag in Aotearoa”, adding that “not all regions are smoothing out”.

Five regions saw double-digit price growth year over year, with the West Coast up 22.0% to $463,184); Northland rose 16.8% to $917,761; Marlborough rose 15.1% to $805,240; Taranaki rose 12.5% ​​to $675,330); and Canterbury rose 10.4% to $712,171.

“Even though average selling prices cooled in our main hubs, 13 regions still bucked the trend, five of which showed double-digit year-over-year growth.”

Central Otago/Lakes tops $1.5 million asking price

The Remarkables (file image).

Williams said the property’s website also saw “a very noticeable anomaly,” with Central Otago/Lakes becoming the first region in the country to hit a median sales price, allowing for seasonal adjustment, of more than $1.5 millions.

The 15-year all-time high means a home near the Remarkables now costs, on average, $1,541,082, up 8.3% year-on-year and “around $400,000 more expensive than a home in Auckland.”

“It’s fascinating that despite the changes in the market and the challenges we’ve faced in the economy, there are still places across the country where property remains valuable,” he said.

“We will certainly be keeping an eye on Central Otago/Lakes in the coming months.”

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