Asking prices for properties are falling but they are taking
longer to sell, figures released today show.
Statistics released in Realestate.co.nz's leatest New Zealand
Property Report showed the average asking price in July was
$400,481, nearly $10,000 down from the June average of
$410,058.
This was the lowest level in a year and close to mid-2008
levels, Realestate.co.nz chief executive Alistair Helm said.
Meanwhile, the inventory levels of unsold homes - measured by
the number of weeks of sales necessary to clear properties on
the market at any one time - was 46.8 weeks, 3 percent higher
than June and 42 percent higher than July last year.
"While there's usually a drop in asking price in winter, the
consistently high level of inventory in 2010 compared to last
year highlights a more fundamental contraction in the
property market," Mr Helm said.
"With sales slowing, prices falling and inventory levels of
unsold houses rising, the conditions in July were a reality
check for sellers, as they recognised the need to find a
competitive price. We see no signs of price appreciation in
the market based on current conditions.
"To give some perspective, at current sales volumes it would
take nearly a year to clear current inventory on the market
if no more houses were listed today."
Mr Helm said the New Zealand property trade was very much a
buyer's market.
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