The number of homes coming on the market continued increasing in March, with 11,322 residential properties newly listed for sale on property website Realestate.co.nz during the month.
That was up 12% compared to a year ago, although the listings figures for March 2020 were impacted by the Level 4 COVID lockdown that occurred towards the end of the month.
New listings were particularly strong in the Auckland market and have been for several months, with 4515 new Auckland listings on Realestate.co.nz in March.
That was up 24% compared to March last year, and was the highest number of new Auckland listings the website has received in the month of March since 2017.
Compared to March last year, new listings were also particularly strong in Coromandel +18.9%, Gisborne +15.3%, central North Island +26.6%, Canterbury +15.4%, West Coast +26.8% and Southland +25.3% (see the chart below for the new listings in each region).
The growth in new listings had major impact on total stock levels, with Realestate.co.nz having a total of 19,437 properties available for sale at the end of March.
That was up 27.8% compared to February but still down 6.1% compared to March last year.
In Auckland there were a total of 8282 properties available for sale on the website at the end of March, up 15.1% compared to February and up 5.1% compared to March last year.
The latest figures suggest the recent tightness in the market from a shortage of stock, may be starting to ease, with more properties available for sale as we head into autumn, when sales numbers traditional start to slow, than there were over the peak summer selling months.
The charts below show the number of new listings and total stock available for sale in each region.
The comment stream on this story is now closed.
74 Comments
Gregg, having lot of houses in the market to buy is one thing BUT can an average Kiwi afford it, is another.
FHB in Auckland is a new breed of million dollar beggars created by the popular almighty Jacinda Arden.
Exactly, one may serve the buffet but question is can one afford it.
Many will have to just satisfy themselves with window shopping and watching Jacinda Arden and her friends enjoying the meal.
So affordability is more important as remember that 1.1 million dollar is still same 1.1 million dollar that was year ago as earning have not changed, in nfact have fallen for many except those speculating.
"can an average Kiwi afford it"
minimum wage rates are up 6 percent this month equals more money to spend
More like flying blind if you think somebody on minimum wage is shopping for property.
You are from Chch arent you... no aspersions meant but chch real estate prices are very affordable for a couple both earning the minimum.
Lol no.
no property market in NZ is 'affordable' ..even Canterbury with its 'oversupply' post quakes is running at close to 7 x median income
Yes a couple earning minimum wage can buy a chch home and service the mortgage... sorry that does fit your storyline
They may qualify (assuming they have saved a reasonable deposit and we know minimum wage workers are living paycheque to paycheque) and they can manage the 45% of their take home income (at current record low interest rates) to service it.....technically available, but in no way affordable.
You're right a house purchase is a big item that takes time to save the deposit. A big feed of maccas every night is easy in fact too easy... speak to the machine and out pops the order. Won't get rich but will die happy.
You’re just as out of touch as Yvil, you sure you don’t have a vested interest in the FIRE economy?
No problems a couple both on minimum wage ( $800 a week or $41 600 per annum) can borrow $550 000 - now if they can save the other 450 000 needed to buy a home in wellington or Aucklandthen they are quids in
Can you imagine a minimum wage earner buying a house in Auckland? Me neither.
That actually made me laugh out loud. You really are out of touch if you think minimum wage earners have anything left after rent and food.
National stopped immigration, built more state houses to fix the problem. They also let old cars and garages become less expensive for accommodation for these "beggars".
There was never a "crises" when John Key was PM
They certainly improved the housing problem in 9 years. LOL
Well National are still in power. 15 years and counting.
It' clear Labor laws have no immediate impact on prices , it push some investors to take the profit by quick sale. But majority of them are preparing themselves and there near ones to vote for National in next election (which will be horrible).
New laws have no quick impact on prices and people still buying it by borrowing to there eyeballs, thanks Jacinda for acting quick and hard to remove LVR, reduce interest rate & Interest only payment. It seems like top 10 politicians are taking team of 5 million for a ride.
Politicians as a breed flock together.
Now Labour = National.
Support by spreading and signing
https://www.change.org/p/grant-robertson-restrict-interest-only-loans-w…
Landlords and speculators too have many petition, wow requesting not to fight against speculation, it seems
Signed and chipped in
With National's crass reaction to last weeks sensible start on levelling the playing field I just might go and vote for the first time ever. It will not really be a vote for anybody but more a vote against National. And to think I had high hopes for Shane Reti, but Dr Shane as much as anybody, should understand that the current system of modern day slavery is just completely unacceptable.
Let’s assume National’s opposition to this is principled: the policy is ineffective at helping FHB and has bad unintended consequences for, say, renters. After 12 months if nothing changes and/or the situation worsens, will you change your mind?
Essen...done in conjunction with other measures they cannot not have a positive effect. People can blatt on about stuff like rents will increase but a sensible caring Govt who has finally decided to level the playing field can take measures to prevent rents rising (more than what is fair). Using excuses for not continuing what we have finally started is just a cop out on behalf of vested interests. If the Govt finishes what it has at long last started (a pursuit of fairness and inclusivity) then we are bound to see very positive changes.
You would have to have a great imagination to assume National's opposition is principled. They are basically stooges for the PI lobby and that lot could not even find principled in the dictionary. I seem to remember they even allowed Ashley Church to run for them about 20 years ago and that really does confirm how devoid of principles they are.
Removal of interest only loans, curbs on immigration, sin tax on unoccupied homes and Air B n B in urban areas and extra high LVRs and DTIs on investors will be very effective in culling back the infestation of investors to a manageable level, where they no longer shatter the hopes and dreams of the average kiwi.
It will be interesting to see what happens. I am hopeful that there is some positive change, but I am cynical given how many “game changers” there have been with little tangible progress to show for it. Banning foreign buyers and ring fencing losses, for example, were heralded policies that have done nothing for FHB and low income families. Let’s review at the end of the year to see if there’s much change. But my gut feel is that little will change from these policies alone.
Ashley Church stood for the National Party in 1987. All parties were very different then. We may not like his views, but it’s a bit unfair on him and the organisation to judge them by what they did 34 years ago.
Essen...mostly agree. Banning foreign buyers and ring fencing were never going to be game changers. Foreign buyers should never be able to compete with kiwis for NZ housing and the absence of ring fencing was giving investors another avenue in which to game the system. So the changes were just righting wrongs rather than intended to be game changers.
IMO the game changes will be as follows:-
when the Govt realize that mass immigration is driving demand and curtail it.
interest rates rise
interest cannot be claimed as an expense on rentals
interest only loans are banned
unoccupied homes and Air B n Bs in urban areas are taxed out of existence
the RMA is revamped and it becomes easier and faster to build
we have very high LVRs for investors
we ensure that all bright line and rental income tax is paid and anybody caught avoiding it is slapped with huge penalty interest
Agree about the National Party 34 years ago but listening to Ashley just in the last month or two saying there is no housing crisis is just sickening. And what Judith Collins said last week about repealing the new laws is even worse.
Trying to slow a Kenworth 18 wheeler by means of a Corolla gear box methinks. Won’t stop said property juggernaut until one day, the tyres go flat.
Foxglove..very true and the Govt can let a couple of tyres down if they choose to do so.
You might want to look at National Party donations a few years back and the ones from Shane Reti.... I wonder where the funds came from?
gnx..where?
Hilarious! Go join a local National party branch and go to their meetings. You might find the members are concerned about the same things as you and there isn’t some secret cabal lobbying on behalf of residential property investors with murky donations in exchange for political favours. In fact, your comment is insinuating Dr Reti is connected to some groups and has received $ for favours; getting very close to defamatory.
Essen...what Judith Collins said last week about repealing the new laws is contradictory to what you claim in your post.
Oh please buy my home at the current inflated price. I will be so sad I'm a market full of listings and no buyers. Average days to sale about to blow out?
Hi YoungDumbAndFullOfIt
What do you expect that "average days" will blow out to... do you have any idea
Some seriously bad stock coming through in Auckland and as soon as there is a semi decent property it is like moths to a flame - with the buyer getting seriously burnt $$$...
But but Mr Orr said to taihoa, and Queen Jacinda said "stop it" . Why aren't people listening? Doesn't it just take govt to deplore harmful activities and everyone will stop silly naughty and bad behaviours.. Why do we even need law when jacinda is so effective a communicator
Jacinda loves the sound of her own rhetoric but when it comes solving problems she fails... jacinda cannot organize a disorganized cupboard
She would promise to build 100,000 more cupboards before organising the existing ones
More listings are definitely needed!!!! Todays Trademe total for nz is 21 thousand and one.. in 2019 the discussion was that listings were over 30 thousand and climbing. Also there are very few sections available and that number is falling too ... in Auckland just 745. This was over 1100 just this year
Total TM property listings shrank 3% since 24 March
That does not match with what some were predicting for a flood of listings after the Tax Bomb
Once the tax man comes knocking I can see a flood of properties suddenly for sale...the numbers don't add up.
My guess, not much changes and no sell-off occurs until actual cashflow is affected for rookie specuvestors. Meanwhile supply is still low and interest cost still low. So nothing has changed besides whinging and some landlords putting rent up pre-emptively. In the meantime FHB still paying high prices. There is alot of money sloshing around from expats moving back to NZ and upgraders looking to springboard off recent gains. A correction really needs to happen now or years more FHB to be locked into high prices, only for them to drop later. What a mickey mouse government we have. Meanwhile Labour is busy working on spin to counter observations that rents are going up.. Spin is everything
Remuera listings are at 97...bar the first full covid lockdown (where I think they got to upper 80’s) I don’t think I’ve ever seen fewer.
Agree - and most of it is the lower priced rot or top end where vendors want too much. So little to chose from in the core $3m-$5m range
Listings where I live in Tauranga are the worst in the whole country. I'm not surprised by Auckland's figures however as a runaway market is a great opportunity to sell that leaker that should have had a wreaking ball put through it a decade ago. You will find some very poor stock coming onto a market where you can sell anything.
Sounds like ChCh with pre-EQ built homes.
carlos67 spot on! recently two adjacent leaky terraced town-houses in a group of four up the road from me in a leafy central suburb sold. The first one to sell was on the market last year but didn't sell. They gave it a coat of paint before Xmas and put it on the market again. I thought no way but it sold in February. Then last month the adjacent townhouse was painted and sold very quickly.
I can spot a leaky home from a mile away as I was roped in to help a building surveyor at the height of the leaky homes crisis in the early 2000s. Also I have seen the owner of the first town-house filling cracks in the cladding about two years ago. Driving around the area I have noticed that quite a few of the houses for sale are leaky home suspects. These leaky homes are being sold through real estate agents.
So, I would ask Greg what proportion of listings are owned by vendors of leaky houses as their owners decide this is probably a life-time opportunity to unload their 'lemons' ?
Greg, I put it to you that without some knowledge of the number of leaky homes in your statistic, the said statistic is unreliable as a true measure of the number of home listings without serious leak problems.
Same scenario with Canterbury suspect EQ repairs. Aware of a cosmetic fix that got sold after previous owner pocketed EQC & Insurance payouts & then just patched up cladding & repaint. Had been paid to completely re-clad & which would have required a cavity leading to new windows. Strangely enough it got past an independent house inspection engaged by the buyers. Nothing to do with this but we haven’t had a ChCh update from TM2 for quite a while.
The real estate agents are obligated to tell the buyers of any known issues with the house so it could all come back to bite them in the ass. You can spot a leaker from the road. Anything monoclad is a no go, even if its cavity I wouldn't touch it. One of the fundamental problems was not putting it on a concrete slab. Simply to much ground movement otherwise. The North Shore is clay which has so much movement in it from winter to summer you can watch your cracks open and close in your walls. Just a whole series of events causes by incompetence from the cladding being to thin and faulty as it get weak over time and just falls to bits if it stays wet, Eve less designs from stupid architects with internal gutters to shoddy builders putting it all up on a few poles. So anything from about 1996 for a whole decade is a pull down job.
Why do we still call them homes?. They are investment vehicles to absorb and profit from the life blood of other human slaves.
Yes, the article in the Herald today about the man who got carried away at an auction referred to him as an 'investment home buyer'. Sounds like an oxymoron to me. But i guess if you are fishing for sympathy, 'home buyer' sounds better than 'property invester'
True. There is a lot denial in this country. It’s funny how the bank ads are cute narratives about first home buyers saving for a deposit to get in on that “doer-upper”.They never put together heart warming ads of property investors out bidding the first home buyers with the financial ammunition (interest only loans) they provided. I wonder why?. They don’t want to associate with the sickness, just profit from it.
I'm seeing this spin all over now, they are even just referring to them as simply 'home buyers'. Should be called out hard for this.
Trillions of $$$ worldwide are seeking a home - NZ houses will stay in high demand keeping prices high. The latest peak levels may consolidate for a period, but this is a global problem and NZ has weak boundaries and high ‘openness’.
Agree unless government and rbnz acts and act fast.
Ah, yes. The ol' buy a place and "Get a flatmate in to rent the spare room(s) and get them to help pay off your mortgage"
But, as we all know:
" Most people who have flatmates don't declare this income or pay tax on it at all, but they're legally required to and not doing so is tax avoidance – ignorance of the law being no excuse. I dare say I expect it will also stop interest deductions for people who are renting out a room or two in their home. Big tax bills on the way, if that's the case. "
https://www.stuff.co.nz/life-style/homed/real-estate/124723246/woman-fo…
There's a difference between 'board' and just letting out the spare room(s).
How many room-renters buy their own food; split the Internet costs; power bills etc? That....is not boarding.
Boarders are generally deemed to be 'food, utilities and accommodation' not just the room. e.g. a boarding house. That is why there is accommodation in the tax act to take that into account - it accepts that some cost of the food, power etc in providing sustenance (the allowances in your link) can be offset against the income received.
Of course, there are all sorts of lies that can be spun to accommodate whatever the definition is - pretty much in keeping with most of the 'rules' regarding property 'investment'
Income is income - and as such, should be taxed.
That article I linked is from The Herald property section. They, at least, seem to know what the taxation laws are.
From the IRD horse's mouth....
When you get money from renting out a room or rooms in your home you’ll earn rental income.
You may need to pay tax on your rental income.
https://www.ird.govt.nz/property/renting-out-residential-property/tax-b…
bw... it is not tax avoidance. It is tax EVASION.
Also, rather than selling the house that she can barely afford (bought her ex-partner's half of the house using Interest Only lending) she feels entitled to keep the house "just in case" she decides to move back to Auckland for work.
Up until now it's been far too easy to accumulate houses or keep houses surplus to one's needs.
Auckland new property listings on Thursday last week were 136.
Compared to 6 days ago, today houses and townhouses listed are down 5%
Also, no one breaks down what is for sale.
Go through the listings and you will see that 28-35% of them are NOT BUILT YET!
The amount of stock sold in last 6 months has been much higher than normal.
Logically, one might think someone would twig that this means that in next 6m there will be fewer to sell and fewer folk wanting to buy, as many have front run the changes to interest payment deductibility and also bought up stuff that is not built yet and the pipeline of new stuff being built is slowing recently.
All of which adds up to much fewer sales in next 6 months than last year over same time period.
Meanwhile price rises will continue but at half the rate probably (say 10-15% til end of year, on annualised basis)
But sales will most likely fall back to the median of last 10 years in Auckland and hence about 23% lower than in 2020 for same months (April-Sept)
what affect would you see then if NZ’s border entry is relaxed somewhat? Could that spur more demand still for those overseas wanting to either return permanently ( on top of those that already have) & those wanting to immigrate here. The media keeps on and on proclaiming enquiries for the latter have become stacks on the mill. Those well heeled may even punt on buying a property before getting entry?
Since the MIQ fee of $5520 was operational the number of inbound passenger arrivals has fallen of a cliff
Bloody good job to iconoclast, we don't want tyre kickers coming into the country we just want millionaires who can afford to buy a house. Got to keep out the rif raf and all that old boy.
Carlos67...exactly. The fee for PR should be $50K per person. That should thin the herd and free up a few more houses for kiwis. And if you really are an essential worker you should have no problem saving up the money while on your temporary visa.
However, if the recent changes introduced by Labour result in more investors deciding to sell investment properties, more stock could come onto the market. If the changes also mean less investor interest in buying investment properties, the number of listings and time taken to sell could both increase. Will be very interesting to watch the market over the coming months.
What we need is more new builds, not more listings recycling the old stock!
The property party continues! DGMs stay mad. I can’t believe commenters are still advocating FHB sit on their hands, very negligent! Most folk I speak to are forecasting net gains out of this Labour policy mess. Who would have thought it!!!!
Reducing the income from an asset will increase its value?
Perverse
Could all the recent buyers be in the "bull trap" phase of bubble models?
Today's open homes in Horowhenua - Revenge of the Ghost Houses. Only 2 out of 7 viewed were occupied, the rest had been vacant "for some time" and providing shelter for spiders
Buy one old derelict shed in AKL, or buy two new brand new houses in OZ. Where salary is about 30-50k more than in NZ, and yea it's AUD. You'll be rewarded everywhere here if you're Healthcare professionals, to avoid similar shock of AKL? avoid MelB & Syd, but hey if both as couple already in 6digits salary, why not? alternatively keep on attending those ungrateful rich sick Kiwis, which always asking for tax payers subsidy treatment, probably it's never been a better time to say 'that's it, I'm out of here'
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.