reported that the number of new listings across NZ fell 17.5% in July compared to the same time in 2016. A “perfect storm” of market conditions led to a record drop in the number of properties listed for sale last month.

Spokeswoman Vanessa Taylor said the extent of the fall was a surprise. The 7933 new listings was the lowest number for any July since her records began in 2007. It was a case of supply and demand, with tightening supply and decreasing demand meaning a stable price environment.

“We’ve come off the back of four or five years of really hot activity and it happened in quite a condensed space. When you’ve got an area that’s a hive of activity and then it moves out, it really does slow. That’s what we are seeing here. It’s a perfect storm with the election coming up and the school holidays, those factors come in that stop people.”

North Island regions with the greatest falls in new property listings in July compared to the previous year were Waikato, down 27%, Bay of Plenty, down 26.3%, and Taranaki, down 22.4%.

By comparison, new property listings in Auckland fell by 13.9%.

In the South Island, Central Otago/Lakes new listings in July fell 32.4% compared July 2016, while Otago listings dropped by 28.8%.

Property asking prices nationally only fell by 0.3% in July compared to the previous month, four regions had lifts in asking prices of more than 5%.

The Coromandel led the way with a 11.2% lift in asking prices compared to the previous month, followed by Northland, 5.6%, Marlborough (5.4%) and Central North Island, 5.1%.

The largest falls in asking price for July compared to June were in Otago (down 7.9%) and the Wairarapa (down 7%).

Taylor said the site had recorded a decrease in the number of properties listed for sale by auction. But she said vendors and agents were instead choosing to list them by negotiation or tender, rather than with a listed price.

Read the original source article here

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