Our latest data reveals a continued rise in the number of properties available for sale, reaching levels not seen in February for a decade. However, despite the increase in overall stock, the number of new listings fell below expectations. The national average asking price saw a slight dip, indicating that sellers are adjusting to shifting market conditions.
Key Takeaways
- National stock levels surpass 35,000, the highest since 2015.
- New listings remain lower than expected for February.
- Average asking prices decline as sellers adapt to market demand.
Market Insights
- 11,363 new listings recorded in February, marking a 3.6% decrease compared to the same month last year.
- Stock levels up by 13.6% year-on-year, reaching a total of 35,712 properties.
- National average asking price fell to $851,090, a 4.7% drop from February 2024.
Balanced Market Conditions
The current market presents a more measured pace compared to the frenzied activity of 2021. Buyers now have more time to evaluate their options, while properties are still selling, offering reassurance for sellers.
Stock Levels Reach Decade-High
National stock levels rose 10.2% from January, with increases seen across most regions. Notably, Gisborne recorded an 80.2% rise in stock month-on-month, a trend often observed in less populated areas with smaller listing pools. While stock levels are at their highest in ten years, they are not yet at record levels.
New Listings Below Expectations
Over 11,000 new listings hit the market in February, reflecting a 27.6% rise from January. However, the typical February surge was milder than anticipated, falling short of the usual 40% increase seen after the summer break. Compared to February 2024, new listings declined 3.6% nationally, with some regions experiencing significant variance:
- Gisborne led with a 79.4% increase in new listings.
- Northland saw the biggest decline, down 23.4%.
Sellers Adjust to Buyer Demand
The national average asking price dropped to $851,090, down 4.7% year-on-year and 2.0% month-on-month. Despite this, asking prices have remained between $840,000 and $890,000 for the past two years, suggesting relative stability.
High stock levels are driving sellers to be more flexible, with seven out of nineteen regions experiencing declines in both annual and monthly average asking prices. Leading the decreases:
- Central Otago/Lakes District: Down 7.9%
- West Coast: Down 6.9%
- Wellington: Down 5.3%
- Bay of Plenty: Down 6.5%
- Northland: Down 3.9%
- Auckland: Down 3.5%
- Taranaki: Down 2.6%
Conversely, Gisborne, Otago, and Marlborough were the only regions to experience both monthly and annual price growth. Marlborough ($807,847) and Otago ($645,377) hit record-high February asking prices.
Market Moving at a Steady Pace
While the rise in available stock has given buyers more room to negotiate, the market remains relatively balanced. Only Auckland and Nelson & Bays are categorized as buyers’ markets, where properties are taking longer to sell.
Properties continue to sell steadily, with sales volumes increasing by 17.5% year-on-year in January, according to the Real Estate Institute of New Zealand. Sellers who work with real estate professionals to make their properties stand out will continue to find success in this evolving market.
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