The changing housing market may have spooked some potential vendors this October, new figures out of realestate.co.nz suggest, as year-on-year listings fall, and asking prices continue to trend downwards since the January peak.
New listings on the property website last month were down nationwide and in 14 of the country's 19 regions when compared to October 2021.
Realestate.co.nz spokesperson Vanessa Williams said the site saw -16.3% fewer new listings year on year during the month of October, suggesting that "property owners shied away from putting their homes on the market" in what is typically a "major month for residential listings".
Williams said while the uncertainty of the Covid-19 lockdowns last year made an impact on buying and selling, "now the uncertainty has shifted to the cost of living and inflation, as well as rising interest rates".
"This might be driving vendors to sit tight as we navigate this changing landscape.”
The biggest drops in new listing numbers were seen in Central Otago/Lakes District, which had just 190 listings (down -35.2%). It was followed by Wairarapa, which had 97 listings (down -33.1%); and Gisborne with 50 listings (down -30.6%).
However, some regions bucked the trend, with double-digit growth in the Coromandel, which had 132 listings (up 38.9%); Nelson and Bays, with 186 listings (up 17.7%); Waikato with 797 (up 13.7%); and Marlborough, which had 126 (up 13.5%).
Total housing stock is up nationally and in all 19 regions, however.
Regions resilient as asking prices in major centres track downwards
Cooling asking prices in major centres has driven the national average asking price downward since its January 2022 peak.
The month-on-month decreases were largely seen in the North Island, with the capital dipping -7.7% to $891,375. It was followed by Auckland, which dropped -6.2% to $1,159,906). Wairarapa, meanwhile, saw a -5.6% decrease to $767,961, while the Coromandel dropped -2.9% to $1,074,809.
Williams said despite the concerns, the month of October is still a good time to be a seller.
In October, users to realestate.co.nz increased by 11.7% month-on-month, while page views also increased.
“When prices ease, it reignites hesitant buyers back into the market—from all different segments," Williams said.
"Anecdotally we have heard of many first-home buyers coming back into the market, along with investors."
However, she warned property prices are a "mixed bag across Aotearoa", adding that "not all regions are softening".
Five regions saw double-digit price growth year-on-year, with the West Coast up 22.0% to $463,184); Northland up 16.8% to $917,761; Marlborough up 15.1% $805,240; Taranaki up 12.5% to $675,330); and Canterbury up 10.4% to $712,171.
“Despite the cooling average asking prices in our major centres, 13 regions still bucked the trend, five of which showed double-digit year-on-year growth."
Central Otago/Lakes cracks over $1.5 million asking price
Williams said the property website also saw "one very notable anomaly", with Central Otago/Lakes becoming the first region in the country to hit an average asking price, allowing for seasonable adjustment, of over $1.5 million.
The 15-year record high means a home near the Remarkables now costs, on average, $1,541,082 — up 8.3% year-on-year and "about $400,000 dearer than a home in Auckland".
"It's fascinating that, despite the shifting market and challenges we’ve faced in the economy, there are still pockets around the country where property is still at a premium," she said.
"We’ll certainly be keeping an eye on Central Otago/Lakes in the months ahead.”
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