The competition heats up for Spring as an increase of listings hit the market
As we look at the statistics produced in this first month of spring, it tells us how the market has performed in September but also how this will likely influence property values as we move closer into summer.
Realestate.co.nz reported that there were 3,896 listings added on the site in Auckland (up 31.9% compared to September last year). In the regions (excluding Auckland), an all-time high national asking price for properties was recorded, with the average asking price across New Zealand standing at $690,733. Property value growth in the Auckland region has increased by 0.8% year on year, despite a 0.7% drop in the last quarter setting the Auckland median value at $1,047,415.
Buyer activity viewing levels are up reporting 855,326 unique browsers searching listings on the site across the country during September. New listings are higher than they were a year ago in Auckland — I see that number increasing further this quarter.
In market feedback from investor groups, few existing landlords are thinking of responding to new regulations by selling their properties. Likewise, for existing home owners who are considering selling but require a higher sale price for their existing home in order to purchase their new home, affordability may encourage them to keep their property off the market.
Then there's continued competitive pressure in the mortgage lending market and further decreases to interest rates by some banks which add to the balance of a stable property market.
What does this suggest for the property market over spring into summer?
With affordability remaining a factor for some buyers looking to buy in the Auckland market and some sellers deciding to hold tight rather than list, my opinion is that the rise in listings over the next few months is not likely to go above normal levels that we traditionally see in this season. This should see Auckland property values and the market remain steady.