The new year starts with even fewer properties for sale, and a somewhat surprising easing in asking prices, according to the December NZ Property Report from realestate.co.nz.
Auckland, Waikato and Otago were most affected by low inventory levels, with stocks of unsold homes falling to a new record lows of 13.9 weeks of inventory in Auckland, 31.5 weeks in Waikato, and 20.4 weeks in Otago, each well below their long term inventory levels.
Inventory levels across the country remain low and the market remains a firms sellers market across 16 of NZ’s 19 regions in the survey.
The seasonally adjusted truncated mean asking price for listings in December was $422,636 which eased from the record high of $446,277 set in November.
The month-on-month decrease of 5% takes the month level to 1% up on December last year.
The level of new listings coming on to the market in December fell on a seasonally adjusted basis by 8.4%. A total of 8,482 new listings were added representing a 3% year-on-year fall.
For the calendar year of 2012 a total of 132,243 new listings came on to the market as compared to 124,748 for calendar year 2011 – a rise of 6%. By comparison the prior years stats were 2007: 177,529; 2008: 163,488; 2009: 135,416; 2010: 138, 789. Compared to the peak of the market on 2007 listings are down 26%.
ASB economist Jane Turner commented on the Report saying:
We interpret December and January housing figures with greater caution than usual, given the limitations of seasonally-adjusted monthly data over a small sample.
Nonetheless, the results suggest the housing market has potentially tightened further in December with supply failing to respond to the increase in demand over 2012.
Ongoing tightness in the housing market will continue to place upward pressure on house prices.
The RBNZ faces a dilemma of balancing a supply-constrained housing market fuelling a lift in credit growth against a muted economic recovery. In light of the weaker economic growth figures, we now expect the RBNZ will keep the OCR on hold until December 2013 (previously September).
However, we believe the RBNZ will not be able to tolerate the momentum in house prices and credit growth for much longer, as it poses a risk to both monetary and financial stability objectives.
There is a growing possibility that the RBNZ will opt to use macro-prudential tools at some point in 2013 in order to ease pressure in the housing market.
Housing inventory
Select chart tabs
21 Comments
The Savings Working Group put the blame fairly and squarely on sucessive governments.
Canada facing housing affordability
Property will possibly beat inflation by a little bit but will be second to the share market where the real money is made. To be in shares you have to have some guts and money of your own and that is why the returns are so good. Dividends come to you normally tax paid and no tenants or costs. What could be better than that.
Kiwis & Aussies have been hoodwinked into thinking their interest rates are currently low. They are actually skyhigh compared to every other developed country exclusing maybe India.
We must be the lowest risk developed country in the world. So why the super premium on our interest rates? Are we here for the benefit of global FX traders? A safe haven offering maximum interest yields?
And why are kiwis paying $2.10 for petrol? Even Aus is 1.37 ...
We are being fleeced ....
We are being fleeced ....
Well you are the land of 44 million sheep!
I bet last year that by July this year I'd be getting a better rate from the bank than my current 4.99%. While I doubt I'll be getting offered 2% any time soon, I am still optimistic that I'll be able to refinance at a lower rate.
Time will tell...
THE fallout from the weak global economy has forced down residential land values in Sydney for the first time in six years.
The declines are most pronounced in the "banker and lawyer" belt of the city's east and lower north shore.
By contrast, the inner west has shown sizeable gains during the past 12 months, thanks to its convenience and good infrastructure.
The data, released on Saturday, shows residential land values are failing to keep up with the rate of inflation. Prices declined by 0.24 per cent in 2011-12, the first fall in six years.
The NSW Valuer-General, Philip Western, said the decline reflected the weak global economy and the soft domestic economy. This had hurt the top end of the market in particular: values fell in Woollahra, Mosman, Waverley and Randwick, which also followed lower sales volumes of higher-end properties.
"Overseas demand for property from purchasers from Asian economies such as from China has also reduced," he said.
http://smh.domain.com.au/real-estate-news/economy-takes-toll-on-land-va…
Its not me doing the talking Scarfie. It is a fact last years returns on the NZ sharemarket killed even the returns on the auckland property scene and the NZx has had an excellent start to the year. Over a period of time shares beat property. That is why serious players get into shares and those who are more risk averse go for property. Also you need cash for shares generally unlike property where you can leverage. Property is lower risk so lower returns historically.
Ask Warren Buffett any further questions.
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.