A real estate company says its latest figures suggest speculation of a property market crash is unfounded and that prices seem to be stabilising.
Prices are stabilising, according to a report by realestate.co.nz. Photo: RNZ / Marika Khabazi
A report from realestate.co.nz out today says skyrocketing prices and stock shortages are gone and average asking prices are flat, with buyers and sellers having more time to make decisions.
Company chief executive Sarah Wood told Morning Report the figures were a reflection of changing market conditions post-pandemic.
The survey reports that, compared to May 2022 when average asking prices fell, prices held firm last month, with fluctuations of no more than around 5 percent in most regions.
The exceptions were in Taranaki and Southland, where prices hit 15-year average asking price highs, increasing by 10.7 percent to $732,684 and 12.5 percent to $553,997, respectively.
The report suggests growth is still strong year-on-year in most regions. Average asking prices have increased in all regions compared to June 2021, with 14 of 19 regions recording double-digit growth.
"We've come off an unprecedented market from the last couple of years and certainly around this time last year we had record levels of low stock on the market," Wood said.
"It think the properties are not selling as quickly, where stock ends up increasing over time" - realestate.co.nz chief executive Sarah Wood
"What we're seeing now is that that has almost doubled - the number of homes for sale has increased and that has really helped create a lot more options for buyers, but also options for vendors as well.
"We're talking about average asking prices and they're, compared to this time last year, they are up. But when we compare to last month they look relatively stable. With the fluctuations there are some ups and downs, but they're not that large, and nearing the asking price. The exception has been Taranaki and Southland."
Wood said a probably reason for there being more housing stock was that it was taking longer to sell houses.
"It think the properties are not selling as quickly, where stock ends up increasing over time. We are seeing a similar level of new homes coming on the market as they were a year ago."
She said this was giving buyers have more time to research and look at options, without the urgency experienced during the pandemic period when competition to buy was fierce.
The report showed buyers markets in Auckland and Wellington for the third and fourth month in a row.