Spring in step of residential property market

First National New Zealand: Spring in step of residential property market

An easing of listing shortages and green shoots in the mid priced residential market punctuated a relatively quiet August, First National Groups monthly survey shows.

The real estate co-operatives nationwide office survey measures key activity indicators including number of listings, website property views, open home attendance, buyer enquiry and number of contracts signed.

Listings shortages were reported as severe in some Auckland suburbs, Nelson and Taranaki but were easing overall, with 38% of offices reporting shortages in August compared with 51% in July and 57% in June.

For the first time in a year, signs of life appeared in mid priced properties ($300 - $400,000) with 13% reporting higher activity than usual in that sector for this time of year.

Activity at the lower priced end of the residential market (under $250,000) which has dominated the market in the past three months continued strongly but was less marked as activity increased across the board.

However, demand for higher priced property (over $600,000) continued to dawdle, on par with the previous two months.

First National General Manager John Stewart commented on record levels of enquiry on websites, saying it indicated people were planning. However, the lack of listings was still making it difficult to meet buyer demand.

Conjecture that lack of stock will drive up prices is just that. Good properties always sell well and often above expectation, he added.

First National notes that section sales are strong in Canterbury, Nelson, Marlborough, Wanaka and showing a lift in the Coromandel Peninsular also.

Section sales always drop early in a contraction but come away early too, and the recent lift in housing consents reflects this.

Another strong trend noticed by First National has been the growing enquiry and purchases by UK buyers, Stewart said.

Numbers of contracts signed overall in August were slightly down on July but within normal range for the time of year, he added.

ENDS

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