‘Market shift’ in listings

The number of homes for sale nationwide has levelled out, and it could indicate the beginning of a market shift, Realestate.co.nz says.

There were 26,685 homes listed on the property website in May, up just 0.9% from 26,301 at the same time last year.

Seven of 19 regions recorded annual decreases in the number of homes for sale, including Wellington and Auckland, where stock dropped by 34.4% and 9.1% respectively. While stock did increase annually in many regions, only Coromandel had an increase of over 50%.

Realestate.co.nz spokesperson Vanessa Williams said it indicated that the ballooning stock levels seen over the last year could be easing. It was not uncommon to see stock levels double year-on-year last year and earlier this year, as the slow market allowed buyers to take their time and forced sellers to be patient, she said.

‘‘While we are not quite back to 2020 levels, where stock was low across the board and the market was highly competitive, this looks to be the beginning of a market shift. The levelling of stock could eventually impact on average asking prices as supply inches closer to demand.’’

At the same time, new listings fell to a near-record low over the autumn months, with a combined total of 23,743 coming on to the market nationwide in the March to May period.

Williams said the figure was just above the 21,391 new listings that came on to the market during the same period in 2020, when lockdown restrictions meant it was difficult for people to list their homes.

There were 18.2% more new listings during autumn 2022 than in 2023, she said. ‘‘We typically see around 30,000 new listings added to the site between March and May and have done so for the last 16 years, so this is a significant drop.

‘‘The low listing numbers are likely to be a symptom of uncertainty in the market, and from interest rates to who will be in government next term, things are difficult to predict right now.’’

Average asking prices might have reached the low point of the cycle, the website’s figures suggested.

After peaking in January last year, prices had steadily decreased, but they had remained flat for the last two months, Williams said.

‘‘We may have reached a so-called ‘bottom’ of this trend or, at the very least, a turning point, but we will have to watch what happens in the coming months to know for sure.’’

The national average asking price was $866,696 in May, down 9.6% from $958,586 at the same time last year. On an annual basis, average asking prices were down in all regions, except for Central North Island, Southland and West Coast.

Auckland’s average asking price was $1.07 million in May, down 13.2% from $1.24m at the same time last year. Wellington’s was $854,899, down 11.2% from $962,501, while Canterbury’s was $699,899, down 4.3% from $731,475.

Williams said that while the market might be at, or nearing, the bottom, prices were still significantly up on pre-Covid levels.

Going into the first lockdown in March 2020, the national average asking price was $707,233, and its current level represented a solid $159,463, or 22.5%, increase in just over three years, she said. ‘‘Property owners should not get discouraged by shortterm dips, as property is not typically a short-term investment. Average asking prices have always increased in the long term.’’

‘‘The levelling of stock could eventually impact on average asking prices.’’ Vanessa Williams, Realestate.co.nz